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Weakness in dry lot condos is a drag on Cape’s market

October 4, 2019
By BOB & GERI QUINN - Homing In , Cape Coral Daily Breeze

Through Aug. 31, we have seen a mix of both good news and bad news in the Cape Coral condominium market so far in 2019. The good news has been that the number of closed sales in the gulf and sailboat access canal condo segments are higher than they were a year ago. These positive results are most likely tied to the fact that the water quality issues of 2018 have been brought down to a low simmer on the back burner of the news cycle. In addition, the average monthly median sales price in these two condo segments has ranged anywhere from slightly higher to slightly lower over the first eight months of 2019, which we consider to be a major accomplishment after the blue green algae and red tide filled 2018.

The bad news in the condominium market is that the supply of Cape Coral condos sitting unsold on our market in the first eight months of this year is up sharply across all segments of our market compared to 2018. And, as you will notice in the market numbers shown below, despite the fact that the levels of unsold supply varies widely between each condo segment, having a higher supply than a year ago means that sellers need to be more accurate with their initial list prices in order to attract buyers.

The second piece of bad news is that over the first eight months of 2019, the number of closed sales in the Cape's dry lot condo segment are down by a lot compared to the same time frame from last year. The average monthly median sales price for dry lot condos is also lower this year versus 2018. The breakdown for the overall condo market, along with each separate segment, follows.

In the first eight months of 2019, the number of closed sales in the overall Cape Coral condo market were down 9.94 percent to a total of 471 condos sold so far this year, compared to a total of 523 condos sold the first eight months of 2018. However, despite this decline in condo sales, the median sales price in the overall Cape condo market managed to edge 2.75 percent higher, to a year-to-date average of $163,719 per month, versus an average median sales price of $159,338 per month over the first eight months of 2018.

Turning to the monthly supply of unsold condos in the overall Cape Coral condo market, through Aug. 31, the condo inventory is averaging 7.13 months in 2019, which was running 21.26 percent higher than the average of 5.88 months of unsold condo supply over the first eight months of 2018. This places the Cape's overall condo market firmly in a neutral market so far this year.

Gulf access canal condos

Moving over to the Cape Coral gulf access canal condominium segment, in the first eight months of 2019, the number of closed sales were up 4.48 percent to a total of 233 condos sold so far this year, compared to a total of 223 condos sold in the first eight months of 2018. But, year-to-date through Aug. 31, we saw a slight decline in the median sales price in this segment to an average of $186,344 per month, which was 2.73 percent lower than the average median sales price of $191,575 per month over the first eight months of 2018.

Through Aug. 31, the monthly supply of unsold gulf access canal condos in Cape Coral is averaging 9 months in 2019, which was 14.21 percent higher than the average of 7.88 months of unsold condo supply over the first eight months of 2018. This 9-month level of unsold supply places the Cape's gulf access condo segment in the high end of a neutral market, bordering on being in a buyer's market at this point in the year.

Sailboat access canal condos

In the Cape Coral sailboat access canal condominium segment, which is a subgroup of the gulf access canal condo segment, in the first eight months of 2019 the number of closed sales were up 4.13 percent to a total of 126 condos sold, compared to a total of 121 condos sold over the first eight months of 2018. Year-to-date, through Aug. 31, the average median sales price in this segment was up 0.34 percent to $218,719 per month from an average of $217,988 per month in the first eight months of 2018.

Through Aug. 31, the monthly supply of unsold sailboat access canal condos in the Cape was averaging 10.63 months in 2019, or 13.33 percent higher than the average of 9.38 months of unsold condo supply over the first eight months of 2018. This level, above 10 months of unsold supply, places the Cape's sailboat access condo segment in a higher inventory buyer's market so far in 2019.

Dry lot condos

In the first eight months of 2019, the number of closed sales in the Cape Coral dry lot (non-canal) condo segment were down 28.08 percent to a total of 187 condos sold so far this year, compared to a total of 260 condos sold over the first eight months of 2018. The median sales price in this condo segment also moved lower, dipping 1.3 percent to a year-to-date average of $131,563 per month, from an average median sales price of $133,294 per month over the first eight months of 2018.

Through Aug. 31, the monthly supply of unsold dry lot condos increased by 16.2 percent, climbing to a year-to-date average of 5.38 months of inventory in 2019, compared to an average of only 4.63 months of supply over the first eight months of last year. Despite this increase in unsold supply, this segment remains the only portion of the Cape's condo market in a low inventory seller's market with less than six months of supply at this point in the year.

(The sales data for this article was obtained from the Florida Realtors Multiple Listing Service Matrix for Lee County, Fla., as of Sept. 21, 2019. It was compiled by Bob and Geri Quinn and it includes information specifically for Cape Coral condominiums, townhouses and villas, and it does not include single-family homes, short sales or foreclosures. The data and statistics are believed to be reliable, however, they could be updated and revised periodically, and are subject to change without notice. The Quinns are a husband and wife real estate team with the RE/MAX Realty Team office in Cape Coral. They have lived in Cape Coral for over 40 years. Geri has been a full-time Realtor since 2005, and Bob joined with Geri as a full-time Realtor in 2014. Their real estate practice is mainly focused on Cape Coral residential property and vacant lots.)

 
 
 

 

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