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2019 Cape luxury condo sales on pace to top 2018

October 18, 2019
By BOB & GERI QUINN - Homing In , Cape Coral Daily Breeze

This week, we will be taking a look at the Cape's high-end, luxury condominium market, which we would consider to be priced from $500,000 and up, and our ultra-high-end luxury condo market priced at $1.0 million and above. In addition to providing this current condo market update, we will also be taking a historical look back at our market where our analysis will be seeking the answer to two of life's long standing theories. Does the early bird get the worm? Or, does the second rat get the cheese? We'll let you decide.

In the recently completed third quarter, there were 5 closed sales in the high-end, luxury segment of Cape Coral condominiums with final sales prices ranging from $617,500 to $975,000. This compares to only two condos sold at $610,000 and $630,000 during the third quarter of 2018, at the height of last year's water woes. Looking at the first nine months of 2019, there were a total of 24 luxury condos sold in the Cape at prices ranging from $500,000 to a high of $975,000. This compares to 20 closed condo sales in the first nine months of 2018 at prices ranging between $500,000 to $835,000. Following a sluggish start to sales in this price segment in the first quarter of this year, with only four closed sales, there were 15 closed sales in the second quarter, highlighted by 8 sales during the month of April.

The Cape's high-end condo sales list was once again dominated by the high-rise units in the Tarpon Landings section of Tarpon Point Marina, which grabbed 17 of these 24 sales, including the 12 highest-priced condo sales so far in 2019. The high-rise condos in Cape Harbour accounted for six of this year's sales, and the Paradise Pointe condo complex on the river at the end of Beach Parkway in Southeast Cape Coral had one sale at $595,000. This compares to the first nine months of 2018, with 13 high-end luxury condos sold in Tarpon Landings, six in Cape Harbour and one in Paradise Pointe. The median sales price for the 24 high-end condos sold in the first nine months of this year was $630,250 or 1.65 percent higher than the median sales price of $620,000 for the 20 high-end condos sold in the first three quarters of 2018.

Overall, there are currently 237 condos listed for sale in Cape Coral, ranging in asking prices from $84,900 for a 700-square-foot unit on Santa Barbara Boulevard, on up to $3.2 million for a 5,296-square-foot, two-story penthouse unit in Tarpon Landings. Of these 237 active condo listings, 27 of them, or 11.39 percent, are priced in our high-end luxury condo market range from $500,000 and up, with four of these 27 condos listed for $1.3 to $3.2 million in our ultra-luxury condo segment. The condo listed for $1.3 million is a riverfront unit off of Beach Parkway, while the three highest priced active condo listings are all in Tarpon Landings. As we mentioned above, with the two highest priced condos selling for $900,000 and $975,000 in Cape Coral so far in 2019, we decided to take a look back at the sales history for Cape condos that have been sold for $1.0 million and above. Here is what we found.

The Multiple Listing Service records showed that dating back to July 2002, there have been 14 Cape Coral condominiums sold for $1.0 million or more, with the record high condo sale occurring in Tarpon Landings for $3.3 million back in April 2007. This highest priced sale was for one of the two-story penthouse units under construction at that time, with 5,296 square feet of living area, including three bedrooms, a den, 3 1/2 bathrooms and a three-car garage. A total of 11 of these 14 $1 million-plus condo sales occurred in 2005 through 2007, with five sales in 2005, four sales in 2006, and winding down to two sales in 2007, as prices were starting to decline in the early stages of the real estate market collapse. It took another 10 years to the exact day before another condo in the Cape sold for over $1 million, when a penthouse unit in Tarpon Landings was purchased in September of 2017 for $2.05 million, after 189 days on the market.

This particular penthouse condo, which was sold furnished in a cash deal for $2.05 million in 2017, is also one of the four ultra-luxury units currently listed for sale after it came back on the market this July at an initial list price of $2.20 million. Leading into this sale in 2017, this unit was initially listed for $2.675 million in December 2014, before it finally sold for 23.36 percent below this list price in 2017. The sales history of this particular condo unit helps provide a quick history lesson about our real estate market. According to the records, the original owner bought it for $2.527 million from the developer in January 2007, before selling it in May 2014 for a 36.29 percent loss of $917,000 (not including any of the typical seller-related expenses). This second owner then sold it to the current owner in 2017, as noted above. So even if the current owner is eventually able to sell this unit for the full list price of $2.20 million, it will still be 12.94 percent, or $327,000, below its original sale price from back in 2007.

Now let's take a quick look at the numbers for the highest priced condo sale in Cape Coral over the first nine months of this year. This was a 3,048-square-foot third floor unit in Tarpon Landings, with three bedrooms and 3 1/2 bathrooms, which was originally purchased from the developer back in September 2006 for $763,500. The original owner put it back up for sale at a list price of $849,900 in December 2010, before finally selling it for $679,900 in March 2012, at a loss of $83,600 or 10.95 percent below their original purchase price (not including any of the typical seller-related expenses). The second owner then listed this unit for sale at an overly optimistic price of $950,000 in March 2018, before settling for a final sales price of $790,000 two months later in May 2018. The third owner completely remodeled this unit and listed it for sale at $989,000 in late March of this year, before ultimately selling it unfurnished in a cash deal that was finalized in July for $975,000.

This condo unit is a perfect illustration of our ongoing market theme that overpriced properties do not get sold without fairly significant price reductions, while reasonably priced homes and condos tend to sell fairly quickly, and often within 5 percent of the initial list price. As for the winner between the early bird and the second rat, timing can be everything.

(The sales data for this article was obtained from the Florida Realtors Multiple Listing Service Matrix for Lee County, Fla., as of Oct. 10, 2019. It was compiled by Bob and Geri Quinn and it includes information specifically for Cape Coral condominiums, townhouses, and villas, and 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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