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October home sales sizzle with ‘just in time inventory’

By BOB and GERI QUINN - Homing In | Nov 19, 2020

Geri and Bob Quinn

With record home sales in October, the Cape Coral market is setting a brisk pace towards another record year for closed home sales, as our housing market seems to be adjusting to what we are describing as a shift to a “just in time inventory.” Simply put, as the supply of active listings continues to dwindle, in what has become a lower inventory seller’s market, enough reasonably priced homes seem to arrive on the market “just in time” to handle some of the buyer demand. To clarify what we mean by this, we want to make two key points.

First, if we had more homes available for sale that were priced reasonably to the current market, these record sales levels would be through the roof, so to speak, as the backlog of potential buyers trying to find the right home at the right price is stacking up. Pretty much every reasonably priced home flies off of the shelves in a matter of days or weeks, while even in this record setting market, overpriced homes sit on the market unsold. 

This brings us to our second key point, which is when we say “reasonably priced,” we do not mean that home prices have not increased, because they have. And we do not mean that buyers are expecting sellers to “give their home away” at prices below the current market. It just means that buyers are remaining rational to the current market and there is often a fine line between what makes a home reasonably priced, or overpriced, in the eyes of a buyer compared to the market. Sellers who figure this out, get their homes sold.

As of Nov. 17, there were 664 active listings of single-family homes for sale in the Cape at list prices ranging from $164,900 to $3,995,000. As a comparison, back on Sept. 22 there were 746 active home listings in the Cape at prices ranging from $157,000 to $3,995,000. So the already tight supply of active listings has declined by 10.99 percent in just under two months, creating a tight supply of homes for buyer’s to choose from.   

In the overall Cape Coral single-family home market, the number of closed home sales for October came in at 620, which was 59.38 percent higher than the 389 sales in October 2019, and 5.62 percent above the 587 sales in September of this year. In the first 10 months of 2020, there have been a total of 4,895 closed home sales in the Cape, which was up 9.26 percent versus the total of 4,480 sales over the first 10 months of last year. 

The median sales price in the Cape’s overall single-family home market was $279,950 in October, or 12.88 percent above the $248,000 posted in October 2019, and flat with the $277,900 in September of this year. In the first 10 months of 2020, the overall median sales price for Cape Coral single-family homes has averaged $263,185 per month, or 7.95 percent higher than the average of $243,813 per month in the first 10 months of 2019. 

Gulf access canal homes

In the Cape Coral single-family gulf access canal home segment, the number of closed home sales for October came in at 143, which was 90.67 percent above the 75 sales in October 2019, but 2.72 percent below the 147 sales in September of this year. In the first 10 months of 2020, there have been a total of 1,115 gulf access home sales in the Cape, which was up 17.62 percent versus the total of 948 home sales in the first 10 months of 2019.   

The median sales price in the Cape’s single-family gulf access canal home segment came in at $520,000 in October, or 14.29 percent higher than the $455,000 posted in October 2019, and 13.79 percent above the $457,000 in September of this year. In the first 10 months of 2020, the median sales price in this segment averaged $466,200 per month, or 7.32 percent higher than the average of $434,395 per month in the first 10 months of 2019. 

Sailboat access canal homes

In the Cape Coral single-family sailboat access canal home segment, which is a subgroup of gulf access homes, the number of closed home sales for October came in at 66, which was 60.98 percent higher than the 41 sales in October 2019, and 10 percent higher than the 60 sales in September of this year. In the first 10 months of 2020, there have been a total of 510 sailboat access home sales in the Cape, which was up 13.59 percent versus the total of 449 sailboat access home sales in the first 10 months of 2019.   

The median sales price in the Cape’s single-family sailboat access canal home segment came in at $551,000 in October, or 19.78 percent above the $460,000 posted in October 2019, and 23.82 percent higher than the $445,000 in September of this year. In the first 10 months of 2020, the median sales price has averaged $480,301 per month in this segment, or 8.84 percent above the average of $441,300 per month in the first 10 months of 2019. 

Freshwater canal homes

In the Cape Coral single-family freshwater canal home segment, the number of closed home sales for October came in at 67, or 91.43 percent higher than the 35 sales in October 2019, but 9.46 percent below the 74 sales in September of this year. In the first 10 months of 2020, there have been a total of 589 home sales in this segment, which was up 19.96 percent versus the total of 491 freshwater canal home sales in the first 10 months of 2019.  

The median sales price in the Cape’s single-family freshwater canal home segment came in at $335,000 in October, or 17.96 percent higher than the $284,000 posted in October 2019, and up 4.85 percent from $319,500 in September of this year. In the first 10 months of 2020, the median sales price has averaged $312,905 per month in this segment, or 7.78 percent higher than the average of $290,315 per month in the first 10 months of 2019. 

Dry lot homes

In the Cape Coral single-family dry lot (non-canal) home segment, the number of closed home sales for October came in at 411, which was 47.31 percent higher than the 279 sales in October 2019, and 12.3 percent above the 366 sales in September of this year. In the first 10 months of 2020, there have been a total of 3,187 dry lot home sales in the Cape, which was up 5 percent versus the total of 3,035 dry lot sales in the first 10 months of 2019. 

The median sales price in the Cape’s single-family dry lot home segment was $241,440 in October, or 6.83 percent higher than the $226,000 posted in October 2019, and 1.0 percent above the $239,040 in September of this year. In the first 10 months of 2020, the median sales price has averaged $231,590 per month in this segment, or 5.54 percent above the average of $219,435 per month in the first 10 months of 2019. 

(The sales data for this article was obtained from the Florida Realtors Multiple Listing Service Matrix for Lee County, Fla., as of Nov. 16, 2020, unless otherwise noted. It was compiled by Bob and Geri Quinn and it includes information specifically for Cape Coral single-family homes, and does not include condominiums, 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 41 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.)