Geri and Bob Quinn

When it comes to the available inventory, the theme in the Cape’s condo market has been towards a significant tightening of the supply in 2020. Currently, there are 149 condos listed for sale in the Cape at prices ranging from $99,000 to $1.875 million. This supply is down 26.24 percent from the 202 active condo listings back on Nov. 1, 2020. There are also 125 pending condo sales in the pipeline scheduled to close sometime within the next 60 days. 

This reduction in the condo supply has us in a seller’s market, creating more competition between potential buyers. This can give an advantage to a seller when it comes to negotiating the price and terms of a sale. The reason we say this “can” give an advantage to a seller is because most buyers are remaining fairly rational in what they will pay for a condo in relationship to the current market conditions. It does not mean a seller can simply name any price for their home or condo, and expect a bidding war to break out between buyers. 

However, if a home or condo is in mostly move-in ready condition, well-maintained, clean and at least somewhat updated and priced reasonably to the current market, it is likely to receive multiple offers and go under contract with a buyer quickly. Right now, we are also seeing a seasonal surge in showing activity, so if your property is currently listed for sale and if you are not seeing much showing activity with potential buyers, it is likely a sign that your home or condo could be overpriced to the market. 

Much of the buyer interest in Cape Coral is being driven by record low mortgage interest rates, combined with the fact that a lot of people are deciding to move out of states with high taxes. Other factors, such as being able to work remotely from just about anywhere, along with the social unrest and rioting from last summer, are also playing into people’s decision to make a move. And the final kicker seems to be what some people view as the extreme, lengthy economic shutdowns and heavy handed restrictions in many northern cities and states during the COVID crisis, versus the way things have been handled in Florida. Agree or disagree, these issues have been motivating a lot of people to make their move now.  

As you look at the monthly condo supply numbers below, which are comparing 2020 to the results from 2019, here is a snapshot of the inventory numbers for the fourth quarter of 2018, and for the entire year in 2018. This should give you a better perspective of the market over the past three years. In our overall Cape Coral condo market, the average monthly supply of unsold condos was at 9 months for the fourth quarter of 2018, and at an average of 6.75 months for the year in 2018. For gulf access canal condos, the average was 12.33 months of supply in the fourth quarter of 2018, and an average of 9.08 months for the year in 2018. In the sailboat access canal condo segment (a subgroup of gulf access condos), the average supply was 13.67 months in the fourth quarter of 2018, and an average of 10.58 months of  supply for the year in 2018. And in our dry lot condo segment, the average supply was 6.67 months in the fourth quarter of 2018, and an average of 5.08 months for the year in 2018.

In the overall Cape Coral condo market, the monthly supply of unsold condos came in at 4 months in December, which was 33.33 percent lower than the 6 months of unsold supply in December 2019, but even with the 4 months of supply in November 2020. In the fourth quarter, the overall unsold supply of condos in the Cape averaged 3.67 months, which was 38.83 percent below the average of 6 months of supply in the fourth quarter of 2019, and 26.6 percent lower than the average of 5 months of unsold supply in the third quarter of 2020. Through Dec. 31, the supply of unsold condos in the overall Cape market averaged 5.92 months for the year in 2020, or 12.3 percent less than the average of 6.75 months of supply for the full year in 2019. This places the overall Cape Coral condo market in a lower inventory seller’s market heading into the New Year.   

Gulf access canal condos

In the Cape Coral gulf access canal condo segment, the monthly supply of unsold condos came in at 2 months in December, which was 71.43 percent lower than the 7 months of unsold supply in December 2019, and 33.33 percent below the 3 months of supply in November 2020. In the fourth quarter, the unsold supply of condos in this segment averaged 2.33 months, which was 66.71 percent below the average of 7 months of supply in the fourth quarter of 2019, and 46.19 percent lower than the average of 4.33 months of unsold supply in the third quarter of 2020. Through Dec. 31, the supply of unsold gulf access condos in the Cape averaged 5.42 months for the year in 2020, or 35.63 percent below the average of 8.42 months of supply for the full year in 2019. This has the Cape’s gulf access condo segment in a seller’s market with less than 6 months of supply at year end.   

Sailboat access canal condos

In the Cape Coral sailboat access canal condo segment, which is a subgroup of gulf access condos, the monthly supply of unsold condos came in at 2 months in December, which was 66.67 percent lower than the 6 months of unsold supply in December 2019, and 60 percent below the 5 months of supply in November 2020. In the fourth quarter, the unsold supply of condos in this segment averaged 3 months, which was 55 percent below the average of 6.67 months of supply in the fourth quarter of 2019, and 40 percent lower than the average of 5 months of unsold supply in the third quarter of 2020. Through Dec. 31, the supply of unsold sailboat access condos in the Cape averaged 6.58 months for the year in 2020, or 32.51 percent lower than the average of 9.75 months of supply for the full year in 2019. Although the monthly average of unsold supply for the year is above 6 months, which would indicate a neutral market in this segment, the fact that the unsold supply has averaged only 4 months over the second half of last year, has this segment in a seller’s market.  

Dry lot condos

In the Cape Coral dry lot (non-canal) condo segment, the monthly supply of unsold condos came in at 7 months in December, which was 40 percent higher than the 5 months of unsold supply in both December 2019, and in November 2020. In the fourth quarter, the unsold supply of condos in this segment averaged 5.33 months, which was 14.13 percent above the average of 4.67 months of supply in the fourth quarter of 2019, but 20.09 percent below the average of 6.67 months of unsold supply in the third quarter of 2020. Through Dec. 31, the supply of unsold dry lot condos in the Cape averaged 6.42 months for the year in 2020, or 24.18 percent higher than the average of 5.17 months of supply for the full year in 2019. The Cape’s dry lot condo segment is leaning a bit towards being in more of a neutral market at year end with a slightly higher than normal inventory. This is likely due to the increase in prices in this segment over the past several years, as we noted last week, which is probably creating some affordability issues for some buyers looking for a lower priced condo.   

The sales data for this article was obtained from the Florida Realtors Multiple Listing Service Matrix for Lee County, Fla., as of Jan. 31, 2021. 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 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.