Home sales in July decline, inventory up, as sellers ‘HODL’
Our real estate market has shifted like a slow motion trainwreck from the white hot, “name your price,” multiple offer sellers’ market frenzy of four to six months ago to a supercooled transitory phase neutral market that seems determined to race its way into what appears to be a much slower paced buyers market.
Let that run on sentence sink in for a moment! Then consider that even Lawrence Yun, the chief economist for the National Association of Realtors, is now saying that we are in the midst of “a national housing recession in terms of declining home sales and home building … but it is not a recession in home prices.” Might we be so bold as to add the word “yet” to Mr. Yun’s quote about home prices. We base that on the decline we have been tracking in median list prices, as noted below, along with a number of other economic factors, all of which are likely to be the “canary in the coal mine” for the future direction of median home sales prices. Sellers who have adjusted to the realities of the current market are selling their homes, while others continue to “hold on for dear life.”
As of Tuesday, Aug. 23, there were 1,425 active Cape Coral single-family home listings through a Realtor in the Multiple Listing Service at prices ranging from $269,500 to $5.995 million. The number of active listings in the Cape has increased by 177.8 percent since Aug. 17, 2021, when there were only 513 single-family homes listed for sale in the MLS at prices ranging from $215,000 to $5.995 million. Currently, there are 321 homes listed at $400,000 and under, with 19 of these listings priced below $300,000. At the other end of the price spectrum there were 180 homes in the Cape listed for $1 million and above. The median list price was $519,000 on Aug. 22, which is 14.9 percent lower than the median list price of $610,000 from about four months ago on April 19.
There are 732 single-family homes under contract with buyers as pending sales at prices ranging from $220,000 to $2.85 million, with 356 of these pending sales priced at $400,000 and under, including 32 homes under $300,000. Only 26 Cape Coral homes were pending at $1 million and above. Back on Aug. 17, 2021, there were 896 homes under contract, with five of these pending sales priced from $165,000 to $199,995.
In the overall Cape Coral single-family home market, there were 465 closed home sales in July, which was 19 percent lower than the 574 closed sales in July of 2021, and 25 percent below the 620 closed sales in June of this year. In the first seven months of 2022, there were a total of 4,058 closed sales in the Cape’s overall single-family home market, which was 4.4 percent lower than the 4,246 closed sales in the first seven months of 2021.
The median sales price in the overall Cape Coral single-family home market was $424,900 in July, or 22.1 percent higher than the $347,900 posted in July 2021, but down 4.5 percent from $445,000 in June of this year. In the first seven months of 2022, the overall median sales price for single-family homes in the Cape averaged $430,486 per month, which was 29.7 percent above the average of $332,014 per month in the first seven months of 2021.
Indirect gulf access canal homes
In the Cape Coral single-family indirect gulf access canal home segment (meaning canal homes with bridges in the canal system), there were 33 closed home sales in July, which was 42.1 percent lower than the 57 closed sales in July 2021, and 52.2 percent below the 69 sales in June of this year. In the first seven months of 2022, there were 419 closed sales in this segment, or 19.3 percent less than the 519 sales in the first seven months of 2021.
The median sales price in the Cape’s single-family indirect gulf access canal home segment was $775,000 in July, which topped the $662,000 posted in July 2021 by 17.1 percent, but it was 9.9 percent below the $860,000 in June of this year. In the first seven months of this year, the median sales price in this segment averaged $809,643 per month, or 33.8 percent above the average of $605,143 per month in the first seven months of 2021.
Direct sailboat access canal homes
In the Cape Coral single-family direct sailboat access canal home segment (homes with no bridges in the canals to reach open water), there were 26 closed home sales in July. This was 38.1 percent lower than the 42 closed sales in July 2021, and 31.6 percent below the 38 sales in June of this year. In the first seven months of 2022, there were 365 closed sales in this segment, or 22.8 percent less than the 473 sales in the first seven months of 2021.
The median sales price in the Cape’s single-family direct sailboat access canal home segment was $755,625 in July, or 0.8 percent above the $749,375 in July 2021, but 12.4 percent lower than the $862,500 in June of this year. In the first seven months of 2022, the median sales price in this segment also averaged $755,625 per month, or 14.1 percent more than the average of $661,989 per month in the first seven months of 2021.
Freshwater canal and lake homes
In the Cape Coral single-family freshwater canal and lake home segment, which consists of landlocked waterfront property with no boating access to the river or the Gulf of Mexico, there were 45 closed home sales in July. This was 31.8 percent lower than the 66 closed sales in July 2021, and 30.8 percent below the 65 closed sales in June of this year. In the first seven months of 2022, there were 430 closed sales in this segment, or 7.5 percent less than the 465 sales in the first seven months of 2021.
The median sales price in the Cape’s single-family freshwater canal and lake home segment was $515,000 in July, or 22.6 percent above the $420,000 posted in July of 2021, but 9.6 percent lower than the $570,000 in June of this year. In the first seven months of 2022, the median sales price in this segment averaged $522,057 per month, or 34.1 percent more than the average of $389,335 per month in the first seven months of 2021.
Dry lot homes
In the Cape Coral single-family dry lot (non-canal) home segment, there were 360 closed home sales in July, which was 11.1 percent lower than the 405 closed sales in July 2021, and it was 19.3 percent below the 446 closed sales in June of this year. In the first seven months of 2022, there were 2,815 closed sales in this segment, or 2 percent more than the 2,760 closed sales in the first seven months of 2021.
The median sales price in this segment was $395,000 in July, or 31.2 percent above the $301,090 posted in July 2021, but down 1.3 percent from $400,000 in June of this year. In the first seven months of 2022, the median sales price for dry lot homes in the Cape averaged $380,050 per month, or 36.7 percent more than the average of $278,084 per month in the first seven 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 Aug. 22, 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 Geri as a full-time Realtor in 2014. Their real estate practice is mainly focused on Cape Coral residential property and vacant lots.