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First quarter condo sales solid, but weakening in April

May 8, 2020
By BOB & GERI QUINN - Homing In , Cape Coral Daily Breeze

Before we dive into the numbers for the Cape Coral condominium market, we have some positive news to report about the preliminary April numbers we are seeing in the Cape's single-family home market. The first bit of positive news was that we saw a nice increase in the number of showing appointments being scheduled at active listings by Realtors for potential buyers over the past three weeks. Showing appointments are a part of the normal flow of selling homes and they are a precursor to a buyer making an offer and having a home go under contract as a pending sale. As we have mentioned in recent columns, showing appointments plunged in the second half of March through the first half of April following the social distancing shutdowns, so this recent recovery in showing activity is welcome news.

Anecdotally, we are continuing to see strong demand for information about our market from out-of-town buyers via the Internet, with new requests coming in 24/7. Some of this Internet activity is from serious buyers who are looking to buy a home in Southwest Florida anytime from right now to sometime within the next year, while others are likely just passing time late at night after spending the better part of the last eight weeks dealing with the shutdowns. The positive takeaway of this activity from potential buyers is that it may lead to future pent up demand, as people become more comfortable with the new abnormal over the next year.

Finally, we saw a pick-up in closed single-family home sales over the last 10 days in April. Based on the drop-off in the number of closed home sales over the first 15 to 20-days of April, we were projecting a potential decline of around 21 to 25 percent compared to the 504 closed sales in April of last year. Even with this type of decline, we were still expecting the four month total of closed home sales for this year to at least match, or come in higher than the total of 1,584 sales over the first four months of 2019. Based on the preliminary results for April, the number of closed home sales finished a bit stronger than projected, and we are still nicely above last year's sales pace through April 30.

Now to the condo market.

In the overall Cape Coral condo market, there were 70 closed sales in March, which was 14.75 percent higher than the 61 closed sales in March of last year, and 9.38 percent more than the 64 closed sales in February of this year. However, we are seeing lower preliminary closed condo sales numbers for the month of April. In the first quarter of this year, there were a total of 177 condos sold in the Cape's overall condo market, or 18 percent higher than the 150 sales in the first quarter of last year, and 8.59 percent more than the 163 sales recorded in the fourth quarter of 2019.

The median sales price in the Cape's overall condo market was $179,250 in March, or 3.61 percent higher than the $173,000 posted in March 2019, and up 9.67 percent from $163,450 in February of this year. In the first quarter of this year, the median sales price in our overall condo market averaged $174,200 per month, which was 6.54 percent higher than the average of $163,500 per month in the first quarter of last year, and 6 percent above the average of $164,333 per month posted in the fourth quarter of 2019.

Gulf access canal condos

In the Cape Coral gulf access canal condo segment, there were 44 closed sales in March, which was 29.41 percent higher than the 34 closed sales in March of last year, and 33.33 percent more than the 33 closed sales in February of this year. But the preliminary number of closed condo sales in April are coming in weaker. In the first quarter of this year, there were a total of 104 condos sold in this segment, or 42.47 percent higher than the 73 sales in the first quarter of last year, and 20.93 percent more than the 86 sales recorded in the fourth quarter of 2019.

The median sales price in the Cape's gulf access condo segment was $196,250 in March, or 7.98 percent higher than the $181,750 posted in March 2019, and up 6.08 percent from $185,000 in February of this year. In the first quarter of this year, the median sales price in this segment averaged $190,417 per month, which was 8.24 percent higher than the average of $175,917 per month in the first quarter of last year, and 4.62 percent above the average of $182,000 per month posted in the fourth quarter of 2019.

Sailboat access canal condos

In the Cape Coral sailboat access canal condo segment, which is a subgroup of gulf access condos, there were 28 closed sales in March, which was 75 percent higher than the 16 closed sales in March of last year, and 47.37 percent more than the 19 closed sales in February of this year. But the preliminary number of closed sales in April are coming in weaker. In the first quarter of this year, there were a total of 60 condos sold in this segment, or 62.16 percent higher than the 37 sales in the first quarter of last year, and 7.14 percent more than the 56 sales recorded in the fourth quarter of 2019.

The median sales price in the Cape's sailboat access condo segment was $202,500 in March, which was 15.63 percent lower than the $240,000 posted in March of 2019, but up 1.5 percent from $199,500 in February of this year. In the first quarter of this year, the median sales price in this segment averaged $205,667 per month, which was 1.23 percent higher than the average of $203,167 per month in the first quarter of last year, but 1.28 percent below the average of $208,333 per month posted in the fourth quarter of 2019.

Dry lot canal condos

In the Cape Coral dry lot (non-canal) condo segment, there were 20 closed sales in March, which was 5.26 percent higher than the 19 closed sales in March of last year, but 4.76 percent less than the 21 closed sales in February of this year. But the preliminary number of closed sales in April are coming in weaker. In the first quarter of this year, there were a total of 56 condos sold in this segment, or 6.67 percent lower than the 60 sales in the first quarter of last year, and 8.2 percent below the 61 sales recorded in the fourth quarter of 2019.

The median sales price in the Cape's dry lot condo segment was $107,000 in March, or 22.18 percent lower than the $137,500 posted in March 2019, and down 18.32 percent from $131,000 in February of this year. In the first quarter of this year, the median sales price in this segment averaged $125,300 per month, which was 6.84 percent lower than the average of $134,500 per month in the first quarter of last year, and 13.7 percent below the average of $145,186 per month posted in the fourth quarter of 2019.

(The sales data for this article was obtained from the Florida Realtors Multiple Listing Service Matrix for Lee County, Fla., as of May 2, 2020. 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 any data for single-family homes, foreclosures or short sales, unless otherwise noted. 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 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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