When folks ask me how the real estate market is doing in Cape Coral, they ask the question with the expression on their face as if they are asking about a relative who is terminally ill. Before I can answer, they may throw in that they feel so horrible about my situation in trying to survive. It is amazing how the mass media can completely sell an idea about our "bad" market, and it shows that bad news sells. I haven’t seen a positive news article written recently, except for Denny Grimes who does a tremendous job analyzing this market.
When I tell folks the truth, about how the demand has tripled over the last 6 months, and I need an extra 75 hours in a day to get my work done, they look at me as if I am the biggest fibber in the world. However, you can not argue with the facts. The chart below shows the amount of sales in Cape Coral over the last 2 years. In 2007, we averaged 178 homes sales per month, in 2008, we averaged 363 homes sales per month. In the last 6 months, since July 1st, we have averaged 441 home sales per month, and this is during the "off-season".
The increase in homes sold is due to the fact that prices have plummeted, as a result of the amount of foreclosures coming onto the market. The foreclosures will continue to come onto the market, however, when that foreclosure spicket is turned off, don't be the last one standing waiting for the bargain train. The overall amount of homes on the market has been steadily declining, even with the amount of foreclosures coming on to the market, over the last year. Last year we started off with over 5200, now there are 3904 homes on the market. We all know what happens in any market where the demand goes up, and the supply goes down. Get on the train, and take a seat, you don’t want to be chasing that train as it speeds off.
