Sales increase nearly 33 percent
According to the National Association of Realtors, sales increased nationally nearly 33 percent from this time a year ago. Half of those sales were first-time buyers taking advantage of the federal tax credit.
To reflect, 2007 was one of the worst years on record for sales. In October 2007, Lee County sales were marginal. The majority of single family home sales were in the $200,000 to $250,000 range. Three bedroom homes outpaced the others with a total of 227 closed sales. The average price for these homes was $234,896, with a total of $53,321,442 in total sales volume. The average time on the market was 111 days.
The total pending sales for the same period was 331 with an average price of $282,508. The median price was $360,641, but this included five (5) properties between the price of $1,000,000 and $3,000,000.
There were 2,204 active listings with an average price of $360,641. Another 331 properties were pending (under contract). If you compare the number of sold and pending transactions to the number of active listings, they represented about 30 percent of the inventory. Whether this number is significant depends on your perspective. In any case, the market was sluggish. When you consider that the first quarter of 2007 produced little to nothing in closed transactions, the last quarter of 2007 fared much better.
Low rise condominiums accounted for another 49 closed sales against 534 active listings. Mid-rise condominiums came in with 12 closed sales against 146 active listings. High-rise condominiums lagged in sales with only 4 against 64 active listings.
By comparison, October 2009 sales in Cape Coral were more impressive with 593 closed transactions which included single family and condominiums. There were 425 new listings in October. Active listings for the period August 1 to October 31 were 892. About 40 percent of the inventory ended in a closed sale.
Waterfront property is starting to edge upwards in value, and there are pockets in Cape Coral where nothing is selling for less than $200,000. Until demand increases, prices will remain relatively stable, albeit foreclosed homes are still selling at or below market value. With respect to the short-sale/foreclosure inventory, banks are now negotiating a higher price per unit, depending on the condition and location of the property. Location and demand has always been the driving force in determining value, so this economic principle will remain consistent, even though property values declined across the board. The decline in value was directly correlated to lack of demand and over inflated prices. However, waterfront property did not take as bad a hit as off-water property. Moreover, waterfront property is usually the fastest to recover after a real estate bust.
Now that I have provided you with some reassuring statistics, I’d like to remind everyone that Thanksgiving is next Thursday. We have all been affected by the housing crisis in one way or another. Although circumstances may seem overwhelming at times, we all have something to be thankful for. For example, we live in one of the most desirable areas of the country. Our weather could not be more perfect. When it is snowing in Cleveland, Chicago, Philadelphia or Detroit, we are waking up to sunshine. Having a bad day? Take a drive to the beach and look out at the spectacular Gulf of Mexico.
I am so grateful for all of my friends, co-workers and family. I am blessed that The Cape Coral Daily Breeze has allowed me space in this paper so that I can provide information to you, the readers. I am thankful that I have a special gift to translate ideas into words. I am also thankful for the gift of life and when I wake up in the morning, I choose to be happy and thankful that I am breathing. Our best days are out in front of us and this weak economy is merely a stumbling block that we will overcome. With that said, I wish all of you a very safe and Happy Thanksgiving.
Mario D’Artagnan is a broker associate with The Jim Fischer Team at Gulf Coast Realty Network, Inc. He is a former Florida Real Estate Commission investigator, a former real estate instructor and a published author. He is also a U.S. Air Force veteran. For more information, contact Mario D’Artagnan at: mariodartagnan@yahoo.com, or call 239-565-4445.