Cape home listings spike higher, buyer activity slows
The big story in our local real estate market going forward will likely involve the Federal Reserve’s commitment to fighting inflation by trying to create demand destruction through interest rate increases on the Federal Funds Rate. Buyer activity has slowed since the Federal Open Market Committee raised rates by three-quarters of 1 percent back on June 15, while more home sellers have piled into the market. From June 14, the day before the Fed’s rate hike, through July 19, the number of single-family homes listed for sale through a Realtor in the Cape has increased by 38 percent from 948 to 1,309, while the median list price has declined by 6.3 percent from $581,450 to $545,000. Over the same time frame, the number of pending sales has dropped by 18.6 percent from 862 to 702 homes under contract. We would expect to see the housing market numbers continue to soften over the next few months if the Fed continues on their path towards higher interest rates.
In the overall Cape Coral single-family home market, there were 611 closed sales in June, down 14.8 percent from 717 homes sold in June 2021, and 1.1 percent below the 618 sales in May of this year. In the second quarter, there were 1,842 closed sales, which was 12.1 percent below the 2,095 sales in the second quarter of 2021, but 5.7 percent above the 1,742 sales in the first quarter of 2022. In the first half of this year, a total of 3,584 homes were sold in the Cape, down 2.4 percent from 3,672 sales in the first six months of 2021.
The median sales price overall for Cape Coral single-family homes was $445,000 in June, which was up 27.3 percent from $349,500 in June 2021, but down 2.2 percent from $455,000 in May of this year. In the second quarter, the median sales price averaged $456,667 per month, which was 31.8 percent above the average of $346,500 per month in the second quarter of 2021, and up 12.4 percent from the average of $406,167 per month in the first quarter of this year. In the first half of 2022, the overall median sales price averaged $431,417 per month in the Cape, which was a 31 percent increase versus the average median sales price of $329,367 per month in the first six months of 2021.
Indirect gulf access canal homes
In the Cape Coral single-family indirect gulf access canal home segment (homes with bridges in the canal system), there were 69 closed sales in June. This was 22.5 percent less than the 89 sales in June 2021, and 6.8 percent below the 74 sales in May of this year. In the second quarter, there were 212 closed sales in this segment, or 14.2 percent less than the 247 sales in the second quarter of 2021, but 21.8 percent above the 174 sales in the first quarter of this year. In the first half of 2022, a total of 386 indirect gulf access homes were sold in the Cape, down 16.5 percent versus 462 sales in the first six months of 2021.
The median sales price in the Cape’s single-family indirect gulf access canal home segment was $860,000 in June, which was up 29.3 percent from $665,000 in June 2021, and 9.2 percent above the $787,600 in May of this year. In the second quarter, the median sales price in this segment averaged $824,200 per month, which was 30.4 percent above the average of $632,000 per month in the second quarter of 2021, and 2.2 percent more than the average of $806,633 per month in the first quarter of this year. In the first half of this year, the median sales price averaged $815,417 per month in this segment, or 36.9 percent above the average median sales price of $595,667 per month in the first six months of 2021.
Direct sailboat access canal homes
In the Cape Coral single-family direct sailboat access canal home segment (no bridges in the canals to get out to open water), there were 36 closed sales in June. This was 46.3 percent lower than the 67 sales in June 2021, and 23.4 percent below the 47 sales in May of this year. In the second quarter, there were 152 sales in this segment, down 39.7 percent from 252 sales in the second quarter of 2021, and 17.8 percent below the 185 sales in the first quarter of this year. In the first half of 2022, a total of 337 direct sailboat access canal homes were sold in the Cape, down 21.8 percent from the 431 sales in the first six months of 2021.
The median sales price in the Cape’s single-family direct sailboat access canal home segment came in at $855,000 in June, up 23 percent from $695,000 in June 2021, but down 25.7 percent from $1.15 million in May of this year. In the second quarter, the median sales price in this segment averaged $959,967 per month, up 41.8 percent from the average of $677,200 per month in the second quarter of 2021, and 10.1 percent above the average of $871,833 per month in the first quarter of this year. In the first half of 2022, the median sales price averaged $915,900 per month in this segment, for a 41.5 percent increase versus the average median sales price of $647,425 per month in the first six months of 2021.
Freshwater canal and lake homes
In the Cape’s single-family freshwater canal and lake home segment (landlocked waterfront homes with no boating access to the river or open water), there were 64 closed sales in June. This was 11.1 percent lower than the 72 sales in June 2021, and 5.9 percent below the 68 sales in May of this year. In the second quarter, there were 202 sales in this segment, or 6 percent below the 215 sales in the second quarter of 2021, but 11 percent above the 182 sales in the first quarter of this year. In the first half of 2022, a total of 384 homes were sold in this segment, down 3.8 percent versus the 399 sales in the first six months of 2021.
The median sales price in the Cape Coral single-family freshwater canal and lake home segment was $570,000 in June, up 46 percent from $390,393 in June 2021, and 2.2 percent above the $557,500 in May of this year. In the second quarter, the median sales price in this segment averaged $559,150 per month, up 40.9 percent from $396,781 per month in the second quarter of 2021, and 14.7 percent above the average median sales price of $487,317 per month in the first quarter of this year. In the first half of 2022, the median sales price averaged $523,233 per month in this segment, up 36.2 percent versus the average median sales price of $384,224 per month in the first six months of 2021.
Dry lot homes
In the Cape’s single-family dry lot (non-canal) home segment, there were 440 closed sales in June, down 9.3 percent from 485 sales in June 2021, but 3.5 percent above the 425 sales in May of this year. In the second quarter, a total of 1,266 homes were sold in this segment, down 7.8 percent from 1,373 sales in the second quarter of 2021, but up 7 percent from 1,183 sales in the first quarter of this year. In the first half of 2022, a total of 2,449 dry lot homes were sold in the Cape, up 4 percent from 2,355 sales in the first six months of 2021.
The median sales price in the Cape Coral single-family dry lot home segment was $400,000 in June, up 36.1 percent from $294,000 in June of 2021, but even with the $400,000 posted in May of this year. In the second quarter, the median sales price in this segment averaged $398,117 per month, up 38.3 percent from the average of $287,833 per month in second quarter of 2021, and 11.5 percent above the average of $357,000 per month in the first quarter of this year. In the first half of 2022, the median sales price averaged $377,558 per month in this segment, up 37.7 percent from the average median sales price of $274,250 per month in the first six months of 2021.
The sales data for this article was obtained from the Florida Realtors Multiple Listing Service Matrix for Lee County, Fla., as of July 18, 2022, 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 42 years. Geri has been a full-time Realtor since 2005, and Bob joined with Geri as a full-time Realtor in 2014. Their real estate practice is mainly focused on Cape Coral residential property and vacant lots.