Geri and Bob Quinn

The continued takeaway from the monthly supply of unsold single-family homes sitting on the market in Cape Coral during April, as shown below, is the very tight level of available inventory, as the supply of homes has dropped substantially compared to a year ago. We remain locked firmly in a low inventory seller’s market, which is providing sellers with a clear advantage over buyers in negotiating the price and terms on the sale of their homes. In addition, the number of active listings in the Cape seems to have stabilized, bumping a bit higher over the past month, possibly ending what was a virtual freefall in our inventory, while interest in our market from out-of-town buyers remains strong.

One of the questions we receive from both home buyers and sellers is, do we think there will be a rush of foreclosures hitting our market sometime soon, and will it put downward pressure on home prices? Based on several recent articles and the data we have seen about this topic, it appears that at this point the potential foreclosure situation will be nothing like the craziness we experienced during the last housing market collapse.

Along this line, the national moratorium on mortgage foreclosures is scheduled to end at the end of this month, and according to the Florida Realtors Association based on a May 27, 2021, report on CNBC.com, some banks have announced plans to resume their foreclosure process in July, while Wells Fargo Bank has announced they plan to hold off on foreclosures until 2022. The Florida Realtors Association also quoted reports from Black Knight that forbearance and mortgage delinquency rates have been gradually declining since states started reopening last summer, with nearly 92 percent of mortgage holders making their loan payments as of April 23. Black Knight indicated this was the largest share of people making their mortgage payments for any month since the pandemic hit.

In another recent article from the Florida Realtors Association, it quoted a report by ATTOM Data Solutions, indicating a recent increase in “Zombie foreclosures.” These are homes that the owners have already vacated, thus the zombie reference, because they were too far behind on their mortgage payments to ever get caught up. Most of these now vacant homes were a part of the almost 250,000 loans that were already well into the foreclosure process before the COVID-19 foreclosure moratorium went into effect, and they will probably make up the first wave of foreclosures to hit the market. ATTOM Data noted that the recent spike in zombie properties has caused some concerns with economists, but that these already abandoned properties are just a blip on the radar screen of the national market.

Turning back to our local market, as of June 1, there were 381 active single-family home listings in the Cape at asking prices ranging from $199,750 to $5.995 million. This active listing count is up by 6.72 percent from the 357 homes on the market from a week ago, and 13.73 percent higher than the 335 active listings from back on March 29. Of these 381 current active listings, 17 percent or 65 of them were listed for $300,000 and below, while 13.39 percent or 51 of the current home listings were priced at $1.0 million and above. If we include foreclosures, the active listing count only increases by three to a total of 384 homes on the market through the Multiple Listing Service. There are currently 1,096 homes under contract with buyers as pending sales, most of which are likely to be recorded as closed sales within the next 30 to 60 days.

In the overall Cape Coral single-family home market, the monthly supply of unsold homes came in at 2 months in April. This was 60 percent lower than the 5 months of unsold supply in April of 2020, and 33.33 percent below the 3 months of supply registered in March of this year. In the first four months of 2021, the monthly level of unsold supply in the Cape’s overall single-family home market averaged 3.25 months, which was 48 percent less than the average of 6.25 months of unsold supply in the first four months of 2020.

Indirect gulf access canal homes

In the Cape Coral single-family indirect gulf access canal home segment, which covers homes with at least one bridge for boaters to go under in the canal system, the monthly supply of unsold homes came in at 3 months in April. This was 62.5 percent lower than the 8 months of unsold supply in April 2020, but 50 percent above the 2 months of supply in this segment during March of this year. In the first four months of 2021, the monthly level of unsold supply for indirect gulf access homes has averaged 2.75 months, which was 67.65 percent less than the average of 8.5 months of unsold supply in the first four months of 2020.

Direct sailboat access canal homes

In the Cape Coral single-family direct sailboat access canal home segment, which represents homes without any bridges in the canal system, the monthly supply of unsold homes came in at 2 months in April. This was 71.43 percent lower than the 7 months of unsold supply in this segment in April 2020, and it was 33.33 percent below the 3 months of supply in March of this year. In the first four months of 2021, the monthly level of unsold supply in this segment averaged 2.75 months, which was 64.52 percent less than the average of 7.75 months of unsold supply in the first four months of 2020.

Freshwater canal homes

In the Cape Coral single-family freshwater canal home segment, which consists of landlocked canals with no access to the river or the Gulf of Mexico by boat, the monthly supply of unsold homes came in at 2 months in April. This was 50 percent lower than the 4 months of unsold supply in April 2020, and 33.33 percent below the 3 months of supply registered in March of this year. In the first four months of 2021, the monthly level of unsold supply in this segment averaged 2.75 months, which was 57.69 percent less than the average of 6.5 months of unsold supply in the first four months of 2020.

Dry lot homes

In the Cape Coral single-family dry lot (non-canal) home segment, the monthly supply of unsold homes came in at 2 months in April, which was 60 percent lower than the 5 months of supply in April 2020, and 33.33 percent below the 3 months of unsold supply in March of this year. In the first four months of 2021, the monthly level of unsold supply in this segment averaged 3.25 months, which was 40.91 percent less than the average of 5.5 months of unsold supply in the first four months of 2020.

The sales data for this article was obtained from the Florida Realtors Multiple Listing Service Matrix for Lee County, Fla., as of May 24, 2021, unless otherwise noted. 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. 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.