Geri and Bob Quinn

The main takeaway in the overall Cape Coral condominium market regarding the inventory of condos listed for sale in the first quarter of this year and in the month of March revolved around the record low levels in the monthly supply of condos sitting on the market unsold. This was mostly due to a record number of closed condo sales over the first three months of 2021, which led to a rapid tightening of active condo listings in an already tight market.

The end result of this extremely low inventory is that condo sellers have been placed firmly in the driver’s seat when it comes to negotiating both the price and terms of the offers they receive, as buyer demand remains strong. However, the “Catch-22” in the market is that the same tight supply of condos that is helping drive prices higher for sellers, means a seller will also have to battle against a lot of competition in trying to find another home or condo to buy. This dilemma of having a lack of adequate inventory to meet the strong buyer demand has put a lot of potential sellers in a position of hesitating from putting their condos up for sale despite the fact they have built-up nice gains in property values due to the recent price appreciation. 

As of Tuesday, May 11, there were only 50 active condo listings (51 including foreclosures) in Cape Coral through a Realtor in the Multiple Listing Service, at current asking prices ranging from $102,000 to $800,000. This current amount of 50 active listings is up slightly from 48 listings a week ago, but down 66.44 percent from the 149 active condo listings back on Jan. 31 of this year, and 75.25 percent lower than the 202 active condo listings back on Nov. 1, 2020. So far this year, at the upper end of our market, there have been two closed condo sales in the Cape above $1 million with one unit going for $1.9 million and the other for $1.8 million. In addition, there are currently 148 condos under contract with buyers as pending sales, most of which should be finalized as closed sales sometime within the next 30 to 60 days. The highest list price on any of these pending condo sales was at $950,000 at the time it went under contract with the buyer, while all of the other pending condo sales currently on the books went under contract at list prices below $750,000. 

As we have been discussing in this column on a regular basis, many homes and condos are receiving multiple offers at or above the initial list price, and they are often going under contract in only a matter of days from being posted on the MLS. However, even in this hot market, some condos are overpriced and they sit on the market for what are lengthy periods of time by today’s standards. As an example, 30 percent, or 15 of the 50 currently active condos listed for sale in the Cape, have been on the market for more than 50 days, which is almost an eternity in today’s market. On some occasions, a property will sit on the market for a longer period of time because its features will only be attractive to a unique buyer, but in many cases a property that does not get sold quickly is simply overpriced to the market.  

Right now, with the group of currently active condos listed for sale in the Cape, the longest time on the market for one of these condos has been for a total of 1,547 cumulative days. This condo was purchased for more than $800,000 back in September 2005, which was a bit before the market peak in 2006, and based on the most recent list price, it looks as if it might end up selling for about $100,000 below the purchase price from almost 16 years ago. 

In the overall Cape Coral condo market, the monthly supply of unsold condos came in at 2 months in March, which was 60 percent lower than the 5 months of unsold supply in March 2020, and 50 percent below the 4 months of supply in February of this year. In the first quarter of this year, the overall unsold supply of condos in the Cape averaged 3.67 months, which was 42.02 percent below the average of 6.33 months of supply in the first quarter of 2020, but flat with the average of 3.67 months of unsold supply in the fourth quarter of 2020. This places the overall Cape Coral condo market solidly in a lower inventory seller’s market.    

Gulf access canal condos

In the Cape Coral gulf access canal condo segment, which includes all saltwater canal condominiums, the monthly supply of unsold condos came in at 2 months in March, which was 60 percent lower than the 5 months of unsold supply in March 2020, and 33.33 percent below the 3 months of supply in February of this year. In the first quarter of this year, the unsold supply of condos in this segment averaged 3.33 months, which was 50.07 percent less than the average of 6.67 months of supply in the first quarter of 2020, but 42.92 percent higher than the average of 2.33 months of unsold supply in the fourth quarter of 2020. This has the Cape’s gulf access condo segment in a seller’s market with less than 6 months of unsold supply.    

Direct sailboat access canal condos

In the Cape Coral direct sailboat access canal condo segment, which is a subgroup of gulf access condos and includes canals with no bridges for boaters to go under to reach open water, the monthly supply of unsold condos also came in at 2 months in March. This was 60 percent lower than the 5 months of unsold supply in March 2020, and 50 percent below the 4 months of supply in February of this year. In the first quarter of this year, the unsold supply of condos in this segment averaged 3.33 months, which was 54.57 percent below the average of 7.33 months of supply in the first quarter of 2020, but 11 percent higher than the average of 3 months of unsold supply in the fourth quarter of 2020. Sellers of direct sailboat access canal condos have a clear cut advantage over buyers when it comes to negotiating the price and terms on the sale of their condos.  

Dry lot condos

In the Cape Coral dry lot (non-canal) condo segment, the monthly supply of unsold condos came in at 3 months in March, which was 50 percent lower than the 6 months of unsold supply in March 2020, and 25 percent below the 4 months of unsold supply in February of this year. In the first quarter of this year, the unsold supply of condos in this segment averaged 4.67 months, which was 26.22 percent lower than the average of 6.33 months of supply in the first quarter of 2020, and 12.38 percent below the average of 5.33 months of unsold supply in the fourth quarter of 2020. The Cape’s dry lot condo segment has moved from more of a borderline neutral market at the end of the year in 2020, to a lower inventory seller’s market in the first quarter of this year. 

The sales data for this article was obtained from the Florida Realtors Multiple Listing Service Matrix for Lee County, Fla., as of April 30, 2021, unless otherwise noted. 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. 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.