Cape’s luxury condo sales plunge in first half of 2020
This week it is time for one more round of champagne wishes and caviar dreams as we look back at the Cape Coral luxury condominium market in the first half of 2020. This is our homage to the late, great Robin Leach, with our version of “Lifestyles of the Rich & Famous.” For our purposes, this luxury segment consists of condos that have sold for $500,000 and up, and as you will see below, the number of closed sales in our luxury market took a big hit in the COVID-19 influenced second quarter of this year. As with our luxury single-family home market, which we discussed last week, the Cape’s luxury condos tend to be located on prime saltwater properties within close proximity to the river.
In the first half of 2020, there were 10 closed sales in the Cape Coral luxury condo market, which was 43.37 percent lower than the 19 closed sales in the first half of 2019. Of these 10 sales, seven were cash deals and three sales were financed. Breaking these closed sales down a bit further to get a better picture of the market, in the first quarter of this year there were seven luxury condo sales in the Cape, which was up 75 percent versus only four sales in the first quarter of 2019, when luxury condo sales were still struggling to overcome the lagging effects of the water quality issues of 2018. Then in mid-March, the mandatory virus-related shutdowns brought our peak month of the tourist season to an abrupt end. This ultimately took what was shaping up to be a strong start to the year across all segments of our real estate market, and led to only three closed sales in our luxury condo market during the second quarter of this year. This was an 80 percent decline in sales versus the 15 closed luxury condo sales in the second quarter of 2019.
Of the 10 closed luxury condo sales in the first half of this year, we saw the usual pattern with eight of these units being sold in the Tarpon Landings section of Tarpon Point Marina at final prices ranging from $555,000 to $875,000. This $875,000 sale was the highest-priced condo sale in the Cape during the first half of this year, and its sales price was 2.78 percent below the $900,000 top sale in the Cape during the first half of last year, which was also for a condo in Tarpon Point. The second highest-priced condo sale in the first half of this year in Cape Coral, which closed for $700,001 on May 20, was the only condo unit in Cape Harbour to break into our luxury priced segment. This Cape Harbour unit was also the last sale recorded in this high-end segment of our market during the first half of this year, with no closed sales registered in the month of June. The other closed sale from the 10 first half sales was located in the Paradise Point condo complex along the river at the end of Beach Parkway in the Southeast Cape. This unit was sold on Valentine’s Day for $525,000.
Looking ahead, as of July 11, there were three condos meeting our luxury price criteria under contract with buyers as pending sales, all of which should become finalized sales in the third quarter of this year. Of these three pending sales, two were located in Tarpon Landings and they went pending at list prices of $792,750 and $799,000. The third pending sale was for a unit in the Tarpon Gardens section of Tarpon Point Marina, with a list price of $500,000. Since most pending sales end up closing at a final sales price that is below the list price, it is likely that the Tarpon Gardens unit will come in under our $500,000 luxury condo price threshold. So at this point, only two of these pending sales may end-up remaining in our luxury condo category after closing, although there is still plenty of time for some additional third quarter condo sales to hit the books.
In taking a snapshot of the Cape’s overall condo market during the first half of this year, there have been a total of 308 closed condo sales in all price ranges, which was 14.68 percent lower than the 361 closed condo sales in the first half of 2019. This means that the overall condo market in the Cape, in terms of the number of closed condo sales, has been holding up better than the high-end luxury condo segment. In the first six months of 2020, the 10 luxury condo sales have accounted for a 3.25 percent market share of total condo sales, which is down from a 5.26 percent market share of condo sales at the midpoint of last year.
Also of note, as of July 11, there were 29 active luxury condo listings in the Cape with asking prices ranging from $515,000 to $2.4 million. Twenty-one of these active listings are located in the Tarpon Point Marina community in the above stated price range, and three of these active listings are in Cape Harbour at list prices ranging from $529,900 to $659,000. There are four active luxury condo listings along the Beach Parkway corridor in the Southeast Cape, at current list prices ranging from $649,990 to $759,000. And finally, there is also a unit listed for sale in the Blue Water complex off of Burnt Store Road, south of Embers Parkway, which is currently listed for $519,000. This unit has been on the market for over 171 days.
Our featured luxury condo sale from the first half of 2020, is a three-bedroom, two-bathroom penthouse unit with 2,054 square feet of living area, overlooking the marina in Cape Harbour that sold unfurnished for $700,001 on May 20. We’re not sure how much of a battle ensued over the extra one dollar, but this was the highest-priced condo sale in the Cape during the second quarter of this year and the second highest-priced sale in the first six months of 2020. Looking at the history of condo sales in Cape Harbour through the Multiple Listing Service, this was the first time since July 2015 that a condo in Cape Harbour sold for more than $700,000 with the next most recent previously highest-priced unit in this community selling for $685,000 in February 2018.
This unit is positioned to capture both sunrises and sunsets, and contained all of the features and upgrades one would expect in a luxury condo, all complimented by 12-foot ceilings throughout, along with 10-foot-tall impact resistant sliding doors, multiple balconies and a private two-car garage. Built in 2004, this unit was originally sold for $721,000 in December 2004, with subsequent sales in 2015 for $680,000 and in February 2018 for $685,000. On this go around, the unit was listed for sale at $719,900 on March 18 of this year, before going under contract with a buyer on May 13, with the owner financed deal closing a week later for only 2.76 percent below the list price.
(The sales data for this article was obtained from the Florida Realtors Multiple Listing Service Matrix for Lee County, Fla., as of July 11, 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 single-family homes, short sales, or foreclosures, 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.)