2016 Cape Coral condo market by the numbers
This week we will look back on the 2016 results and trends for the Cape Coral condominium market, but first, we have a quick correction from last week’s column about whether we are in a buyer’s market or a seller’s market in Cape Coral single-family homes. Regarding the supply of unsold “dry lot” homes in 2016, the average monthly supply for the year was correctly stated at 5.08 months, which would put this property segment in a seller’s market going into 2017, not a buyer’s market, as was incorrectly stated. When there is under 6 months of inventory, it is considered to be a seller’s market.
The Cape Coral condominium market is similar to the single-family home market in that the property values, along with the market statistics and trends, will tend to vary based upon the property type. This is why we like to look at the overall Cape Coral condo market by itself, and then break it down by specific property-types to try to establish a more accurate market baseline from which to make our comparisons. So let’s begin with a general overview and then examine each specific underlying market segment separately to see the differences.
Overall, there were 621 Cape Coral condominiums sold in 2016, which was 2.82 percent lower than the 639 condos sold in 2015. In the 4th quarter, there were 146 condos sold, which was the same as in the 3rd quarter of 2016, but down 14 percent from the 2nd quarter tally of 170 condos sold, which was the high point of the year. The 4th quarter of 2016 was also down from the 4th quarter of 2015, when there were 152 condos sold, for a decline of 3.95 percent.
The average monthly median sales price for Cape Coral condominiums was $137,021 in 2016, up only 1.12 percent from an average of $135,507 per month in 2015. The 4th quarter average monthly median sales price was up 9.96 percent to $140,750 from the 3rd quarter average of $128,000 per month. It should be noted that the 3rd quarter of 2016 had the lowest average monthly median sales price since the 3rd quarter of 2014, which averaged $127,500 per month. The 4th quarter 2016, was down 1.69 percent from $143,167 in the 4th quarter of 2015.
Gulf access canal condos:
In 2016, out of the total number of 621 condo units sold in Cape Coral, 287 or 46.2 percent of the total sold were gulf access canal units. This was down about 12 percent from 2015, when there were 326 gulf access condos sold for the year. In the 4th quarter 2016, the number of units sold declined by 14.6 percent to a total of 70, from 82 sold in the 4th quarter of 2015.
The average monthly median sales price for Cape Coral gulf access condominiums was $164,667 in 2016, up 8.08 percent from an average of $152,363 per month in 2015. The 4th quarter average monthly median sales price was up 8.32 percent to $171,500 from the 3rd quarter average of $158,333 per month, but down 0.58 percent from $172,500 in the 4th quarter of 2015.
Sailboat access canal condos:
For Cape Coral sailboat access canal condominiums, which are a subgroup of the gulf access property segment, there were 139 condo units sold in 2016, which was down by 16.27 percent from the 166 sailboat access canal units sold in 2015. In the 4th quarter 2016, the number of units sold declined by 15 percent to 34 units sold, down from a total of 40 sold in the 4th quarter of 2015. The 1st quarter of 2016 was the strongest quarter last year, with a total of 40 sailboat access canal condos sold.
The average monthly median sales price for Cape Coral sailboat access canal condominiums was $192,304 in 2016, up only 1.67 percent from an average of $189,142 per month in 2015. The 4th quarter average monthly median sales price of $200,067 was the highest priced quarter in 2016, and it was 2.2 percent higher than the $195,750 in the 4th quarter 2015. However, it was still 2.28 percent below the recent average monthly high of $204,733 reached back in the 2nd quarter of 2015.
Dry lot condos:
There were 278 dry lot (non-canal) Cape Coral condominiums sold in 2016, which was 9.88 percent higher than the 253 dry lot condos sold in 2015. There were only 191 dry lot condos sold in Cape Coral back in 2014. In the 4th quarter, there were 62 condos sold, which was the same as in the 1st quarter of 2016 and the 4th quarter of 2015, but down 13.9 percent from the 3rd quarter tally of 72 condos sold. The high point of 2016, was in the 2nd quarter, with a robust number of 82 dry lot condos sold, which was the highest quarterly number sold since the market bottomed out in the 4th quarter of 2009, with only 8 dry lot condos sold.
The average monthly median sales price for Cape Coral dry lot condominiums was $102,071 in 2016, which was down by 7.2 percent from an average of $110,000 per month in 2015. The 4th quarter 2016 average monthly median sales price was up 29.8 percent to $115,250 from the 3rd quarter average of $88,817 per month. But to keep this increase in perspective, the 3rd quarter 2016, was the lowest quarterly average monthly median sales price since the 4th quarter of 2014, when it was $80,617 per month. The 4th quarter median sales price of $115,250 was 2.98 percent higher than the $111,917 per month registered in the 4th quarter 2015.
As you can see from the above information about Cape Coral real estate, it is important to dig down beneath the surface of the overall market, to analyze the segments within the market. By having more accurate information about specific property-types, you will be less likely to make potentially costly mistakes when buying or selling your home or condo.
(The Dec. 31, 2016, year-end Sales Data for this article was obtained from the Florida Realtors Multiple Listing Service Matrix for Lee County, as of January 28, 2017, and compiled by Bob and Geri Quinn. It includes information specifically for Cape Coral low-rise, mid-rise and high-rise condominiums, along with attached and detached villas, and townhouses. It does not include single-family homes, foreclosures or short sales. 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 Century 21 Birchwood Realty Inc., in Cape Coral. They have lived in Cape Coral for over 37 years. Geri has been a full-time Realtor since 2005, and Bob, who also holds a Certified Financial Planner designation, 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.)