Geri and Bob Quinn

This week we are taking a look back at the year that was 2020 in the single-family luxury home segment in Cape Coral, with another tip of the hat to Robin Leach, the late host of “Lifestyles of the Rich and Famous.” For our purposes, the high-end luxury home market in the Cape consists of homes that have been sold for $1 million and up, and despite the severe blow to the economy and the job market due to the pandemic, it was a huge year in luxury home sales. So, at least for a moment, we will set aside the turmoil that occurred on many fronts throughout the country during last year and offer up a Robin Leach-style toast of Champagne wishes and caviar dreams to a record setting year in our real estate market. 

 First, to set the table, we had a record total of 6,059 single-family homes sold in Cape Coral during 2020, which included a record number of 78 luxury home sales at prices of $1 million and above. This means that the luxury home segment accounted for 1.29 percent of the total sales in the Cape last year. As a comparison, back in 2019 there were a total of 5,340 home sales in the Cape, which was a record level at the time, with a total of 48 closed sales in our luxury home market. So there was nothing short of a huge 62.5 percent increase in luxury home sales in 2020 versus 2019. Breaking this down further, there were a total of 27 closed luxury home sales in the first half of 2020, followed by an incredible 51 closed sales in the second half of the year, with 17 of these sales closing in the third quarter after the state of Florida reopened from the forced COVID-19 shutdowns. Luxury home sales then ramped-up even higher in the fourth quarter, with a total of 34 closed sales. This compares to 19 first half of the year sales in 2019, and a total of 29 closed sales in the second half of 2019, with a peak of 16 sales in the third quarter of that year.

All of these sales numbers are consistent with the mass exodus of people fleeing northern states reportedly due to the COVID-19-related lockdowns and the riots from last summer, not to mention leaving behind all of the higher taxes in these states. For many people, escaping to places like Florida has placed Cape Coral in a great position to benefit from receiving our fair share of people motivated to make this move. The breakdown of the record 78 luxury home sales in the Cape during 2020 included 50 sales of $1.0 million plus in the Southwest Cape, 27 such sales in the Southeast Cape, and one sale of $1.1 million on Old Burnt Store Road North in the Northwest Cape.

The median sales price of these 78 luxury home sales in 2020 was $1.25 million, which was actually $27,500 or 2.15 percent lower than the median sales price of $1,277,500 for the 48 luxury home sales in 2019. It is too early to tell if this is simply part of a healthy flattening out from rising prices in the high end of our market, something we would refer to as a “pause to refresh,” before sales prices continue higher. Or, whether this is an early warning sign that the bull market in home sales in our housing market is making its final push before topping out? This is something we will be keeping an eye on during the first half of 2021. 

However, for now, we are still seeing strong demand from buyers from all over the world via the Internet who are looking for homes in Cape Coral, but we have a growing concern about the shrinking supply of available homes for sale in our market. Based on the numbers from the Multiple Listing Service this week, there were only 538 single-family homes listed for sale in the Cape (540 if we include foreclosures). This number includes 56 active listings for luxury homes priced at $1 million and above. To illustrate the growing shortage with the inventory, back on Dec. 21, 2020, there were a total of 632 active home listings in the Cape, and in September 2020 there were a total of 746 active listings. So far in 2021, the typical influx of seasonal sellers has failed to appear, and this, combined with the record level of sales in the second half of 2020 is creating a very tight supply of homes for buyers to choose from.    

One final note about the sales prices in our luxury market is that in 2020 there were five closed sales at $2 million and above with the highest priced sale for the year closing on Nov. 16 at $2,699,900. By comparison, in 2019, there were also five closed home sales at $2 million and above, with the highest priced sale at $2.55 million. 

As mentioned above, the highest-priced home sold in the Cape during 2020 sold for $2,699,900 on Nov. 16. This home was located on Riverside Drive in the Yacht Club neighborhood in the Southeast Cape, near the end of a cul-de-sac on a canal just around the corner from the river. This home was built in 2018 on an oversized 0.35-acre, roughly 15,000-square-foot vacant residential lot, with 105 feet of seawall and a 100-foot-long composite dock. The vacant lot changed hands several times prior to the home being built, first selling for $325,000 in May 2014, followed by another sale in January 2016 for $475,000. The vacant lot was sold again for $490,000 in April 2017, with this buyer pulling the new home construction permit in January 2018, to build this home.

This custom-built Mediterranean-style home features 3 bedrooms, 4 1/2 bathrooms and a 3-car garage, with approximately 3,728 square feet of living area and an estimated 7,121 square feet of total area. For starters, this luxury home won multiple awards from the Cape Coral Construction Industry Association for the overall best kitchen, bath, interior design, outdoor living space and livability. The gourmet kitchen features Thermador appliances and it is set up for entertaining as the floor plan combines the kitchen with the great room and dining areas, all of which open up to an incredible outdoor living space. There is also an outdoor kitchen, a resort-style pool with a cascading spa, a tanning ledge, plus a linear fire pit and fire bowls. The interior also features a spacious master suite with a luxurious master bath, Turkish marble flooring, two fireplaces, an entire house reverse osmosis water system, and an entire house home generator system. We could continue on about the other features of this home, but we will just say it is a home that would fit the bill for an episode of “Lifestyles of the Rich & Famous.” 

This home was initially listed for sale on Feb. 20, 2020, at $3.0 million, and there was a small price reduction to $2.95 million on April 18, 2020, before the home went under contract with a buyer as a pending sale on Oct. 2. It was sold unfurnished through a conventional loan at $2,699,900. So it took about 7 1/2 months to sell and it ended up selling for $300,100 or 10 percent below the initial list price. 

The sales data for this article, was obtained from the Florida Realtors Multiple Listing Service Matrix for Lee County, Fla., as of Jan. 12, 2021. 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, 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 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.