by Mike Colpitts 
Cape Coral home sales are stabilizing as mortgage rates decline after being one of the hardest hit cities in Florida.- The inventory of homes in Cape Coral is still bloated but is declining as more buyers enter the marketplace.
- The average price of a home has dropped from 25 to 30 percent, which is also helping to drive more home sales.
Cape Coral, which has been suffering through one of Florida’s most severe downturns is seeing home sales stabilize as single family home sales trend higher. The upward move is no surprise for Cape Coral since the city has been experiencing record growth for more than a decade.
With new home sales once leading the market, re-sales are picking up substantially. Driven by lower mortgage rates, Cape Coral is showing signs of a full rebound and is moving toward more stable pricing. Buyers have stronger leverage, especially in lower priced condos and homes that are in the luxury market on the waterfront. Single-family home prices have declined substantially, and the inventory remains elevated.
The inventory of homes is sizeable with 2,510 single family homes listed for sale. The inventory has declined over the past couple of months and equates to more than a six month inventory of homes to sell. That’s why pricing a home right for the market is key to selling property. Over-priced homes sit on the market and get little activity or few showings.
Being realistic about market conditions is critical for sellers pricing their homes for the market as buyers have more options to consider.
The average price of a home in most of Cape Coral has dropped from 25 to 30 percent from its record high. As Cape Coral home sales stabilize, the decline in prices will eventually reverse.
In September, 406 single family homes closed, according to the Royal Palm Coast Realtors Association. August saw 441 sell; July 443; June 475 and May 531 before the summer heatwave slowed sales. Typically, home sales pick up in November in the region when snowbirds return to the area.
High mortgage rates, elevated insurance costs, and overbuilding contributed to the market’s performance. Higher mortgage rates also slowed home sales but have now picked up with lower rates. Some new home builders are offering a menu of incentives to buyers to purchase homes, including discount mortgages.
Cape Coral’s population growth and the area’s appeal to retirees with warmer weather, plenty of sunshine, golf and outdoor activities are expected to support long term demand. As one of the state’s boating capitals, Cape Coral has more miles of waterway than any other community in Florida, which makes it an inviting place for boaters to call home.