Cape Coral home prices are down, inventory is high and growing, so is it time to panic? NO, NO, NO. Thanks to Yoselyn Hollow, our wise and organized RE/MAX Realty Team Broker, we were able to retrieve a time not terribly long ago (late 2000s) when things looked significantly more bleak. 

In December 2010, during the Great Recession, Cape Coral home prices sank to $110,000. Yes, you read that correctly. And, in January 2008, inventory reached the unthinkable height of 31 months – 2 ½ years’ worth of homes to sell.

So, although the numbers below might be discouraging, be mindful that all real estate troughs eventually improve, and all peaks drop. It’s called the “real estate market”. I sincerely believe we are within 3 – 4 months of the upswing, so buyers, take advantage of today’s low home prices.

                                        Cape Coral Nov 2023 vs. Nov 2024

                                        Lee County Nov 2023 vs. Nov 2024

Cape Coral Gulf Access Homes: Nov 2023 = 50 Gulf Access Sales, Avg Price: $937,000

                                                  Nov 2024 = 50 Gulf Access Sales, Avg Price: $712,000

Cape Coral $1M+ Homes: Nov 2023 = 13 $1M+ Sales, Avg Price: $1,683,000   Highest: $3,700,000

                                         Nov 2024 =   7 $1M+ Sales, Avg Price: $1,342,000   Highest:  $1,900,000

Cape Coral Inventory: is now at 10 months, the highest level since 2008, and an increasingly strong buyers' market

Notes: 

1. Although the number of sales is down in all of Lee County, it was encouraging to see that home prices (excluding Cape Coral) rose from last November. 

2. The number and pricing of Cape $1M homes is down substantially from a year ago.

Florida Leads U.S. for Best Place to Retire –

Naples #1 U.S.City

         U.S. News & World Report named Florida Best State to Retire in 2025. Three Florida cities made the top                        10 list, and another seven Florida cities were in the top 20. Our very own Naples topped the entire U.S.                        list as the best town to retire to. 

         Retirees expectations were measured in happiness, affordability, health care, desirability, retiree taxes                          and job market among individuals 45 and older. This year, U.S. News adjusted its scoring to make happiness                  the most heavily weighted of the six factors in the methodology. Naples scored high in happiness, desirability,                retiree taxes, and job market. Lisa: It makes us proud to have one of our local cities be the best city to retire in             the entire country

Remodel or Move? How to Decide

When deciding between remodeling or moving, consider costs, time, risk and return on investment. Emotional components also matter. Compare costs – to your wallet and peace of mind

Remodeling:

·         Money – most projects tend to cost more than projections, sometimes much more

·         Time, Stress, and Risk- homeowners also underestimate the time and stress involved

·         Return on Investment – Research how much local homes with similar upgrades sell for

         Moving:

·         Available Properties – and do they also need remodeling to meet your criteria

·         Monthly Mortgage Payments – are you exchanging a low-interest loan for a higher one

·         Cost of Buying & Selling – closing costs and loan fees can be quite steep

Whether you decide to remodel or move comes down entirely to personal choice. By considering 

the financial and emotional aspects of both options you can confidently make a decision that is best 

for you. Jenna: Our team has extensive experience with remodeling/staging a home. We'll be happy to guide you as to whether remodeling or selling is in your best interest. 

FEMA Offers Monthly Payments for Flood Insurance

         On Dec. 31, FEMA – which oversees the National Flood Insurance Program – will break a 55-year                                  tradition of requiring annual up-front payments for flood insurance and will offer the choice of monthly                          installments. The agency hopes the change will “expand access” and “reduce barriers to purchasing flood                      insurance”.

         Property owners whose lender requires them to escrow their premiums will still have to pay for the coverage                  annually up front. Florida has the most single-family flood policies, at more than 894,000, followed by 

         Texas and Louisiana with 586,000 and 397,000 flood policies. 

Facts & Stats and Tom’s Musings

        Veteran Homelessness Drop to Record Low: The VA has housed nearly 48,000 veterans in recent years and             expanded support, including approving disability claims and increasing childcare access. In January,                               officials counted 32,882 homeless veterans, a significant drop from recent years.

        3^rd Quarter Tourism Up in Florida: Despite hurricanes in August and September, Visit Florida estimated a                   record 34.61 million people traveled to Fl in Q3, up from the same period in 2022 and 2023. During the first three-          quarters of 2024, Visit Florida estimates 109.7 million people visited the state.

        NFL Fans Say Loyalty Influenced Home Search: About 1 in 5 NFL followers say their loyalty played a                       significant or highly significant role in their home search process, and 55% say that supporting a local team helps           them feel more connected to their community and neighborhood, according to Realtor.com

        U.S. Home Tours, Mortgage Locks Bounce Back: Buyers are gradually wading back into the market on the               post-election interest rate cut, per Redfin. An economist found that buyers had been waiting for the election to be           over after taking a hiatus in the lead-up to the election.

Yes, Two Hurricanes Did Affect SWFL Home Sales & Prices

Our SWFL real estate market had enough obstacles prior to Hurricanes Helene and Milton adding to our woes. The sales market was shut down for several days during October. Despite the headwinds (sorry for the pun), October’s sales numbers and prices were not too far behind September’s stats. IMO, the two hurricanes will set back the beginning of the market turnaround by a month or more, i.e. Feb or March instead of Jan.

On the upside, the election is over, the Fed has dropped the 2^nd of what is expected several rate decreases, and our northern friends will soon start feeling the chilly air and snow that sends many of them to the warmth and sun of the Sunshine State.

                                        Cape Coral Oct 2023 vs. Oct 2024

                                         Lee County Oct 2023 vs. Oct 2024

        Cape Coral Gulf Access Homes: Oct 2023 = 53 Gulf Access Sales, Avg Price: $934,000

                                                          Oct 2024 = 46 Gulf Access Sales, Avg Price: $812,000

        Cape Coral $1M+ Homes: Oct 2023 = 13 $1M+ Sales, Avg Price: $1,785,000   Highest:  $5,800,000

                                                 Oct 2024 =   8 $1M+ Sales, Avg Price: $1,540,000   Highest:  $2,300,000

Notes: 1.Cape Coral home inventory jumped to 8 months, the highest level in several years and fully implementing a "buyer's market".

2. Note the decrease in both the number of upper-market home sales and prices. This may not improve much until the first quarter of 2025. 

WalletHub: Florida 2^nd Best State to Live in U.S.

The personal finance company compiled 51 comparison points to rank all 50 states in their 2024 study. The list of factors includes job opportunities, educational quality, safety and the cost of groceries. Florida came in 2^nd to Massachusetts. Here’s what WalletHub had to say about the Sunshine State:

It boasts one of the lowest unemployment rates in the country at just 2.9%, plus the sixth-most job opportunities per capita.

It has the seventh-lowest tax rates and sixth-highest median household income growth, making it a great place to build and grow wealth.

Fla offers an abundance of leisure activities per capita, especially restaurants, beaches, fitness centers and theaters.

It is a pretty safe state, with the ninth-most law enforcement employees per capita, the 13^th-lowest violent crime rate, and the 15^th lowest property crime rate.                                          

Expert: Homeowners Rebuild After Storms

Dr. Brad O’Connor, chief economist for Florida Realtors, said storms never seem to leave a statewide impact on the housing market. Rather, they cause a temporary lull in sales. He added, “usually we see within a couple of months the same number of sales as before". Even with a slight increase in distressed properties following hurricanes, most experts do not foresee huge price declines in the state.

Real estate professionals state that despite an untick in some current homeowners selling their properties following Hurricanes Helene and Milton, the Florida housing markets are set for a rebound as communities rebuild and new single-family and condominium developments emerge. Some coastal homeowners may seek out more affordable, inland Florida homes. 

Zillow: Builders Shift to Condos, Townhomes

America’s housing stock continues to grow faster than it did before the pandemic-induced housing frenzy, as builders race to fill a shortage of 4.5 million homes. Building attached homes helps reduce land costs and offers more affordable options for budget-conscious buyers.

Construction starts for detached single-family homes declined by nearly 9% from 2022 to 2023 but starts for attached single-family homes rose by more than 3% over the same time span. The pace of construction is slowing, likely due in large part to slowing demand amid housing affordability.

Markets with faster jobs and income growth, and thus higher housing demand, have historically seen larger increases in new construction activity relative to slower growth markets. Lisa: We expect new construction in SWFL to increase as soon as interest rates become more reasonable. 

Renter Households Outpace Owners Nationally

Redfin: Rentership rates are lower in metros where it’s more affordable to buy a home. In Cape Coral, only 21.8% of households are renter households – the lowest share among the metros Redfin analyzed.

The number of renter households rose 2.7% in the third quarter year over year, to a record 45.6 million. That rate is three times faster than the 0.9% increase in homeowner households, which now total a record 87 million. Renter households have formed faster than homeownership households for the past four quarters as the cost of buying a home rose significantly faster than the cost of renting.

Facts & Stats and Tom’s Musings

Experts: Florida Insurance Market Solid: The state’s insurers have sufficient reinsurance capital to weather Hurricanes Milton, Helene, Debby and another Milton-sized storm this year. Jenna: This is welcome news for SWFL homeowners who are already burdened with high insurance premiums.

Wicked Dolphin Voted Top 10 Distillery in U.S. – USA Today readers named Cape Coral’s Wicked Dolphin #5 top distillery in U.S. This makes five straight years in the Top 10 in the best craft rum distilleries in the country. There are 18 premium rums along with Wicked Dolphin’s own vodka. Cocktails are also available. They’ve won over 60 medals in the past 12 years, including some internationally. 

Homeowners Sitting on Record Amount of Home Equity: According to Unlock Technologies,Americans have roughly $11.5 trillion in tappable equity - meaning the amount they could withdraw and still maintain a 20% cushion. 

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American Households: More Dogs, Fewer Children – A study by Pew Research Center shows that amid shrinking households and declining birth rates, one family member is increasingly taking center stage: the pet. More adults are now caring for pets than children. Alongside their elevated status, pets are enjoying elevated living. The American pet industry spending has surged from $90 billion in 2018 to an estimated $150 billion in 2024.

Redfin: New Construction Falls to 3-Year Low: Newly built homes are making up a smaller portion of total inventory as builders back off and more homeowners list their houses for sale.

*Do Hurricanes Impact the Number of People Moving to Florida?

*House Bill 1049 Requires Sellers to Disclose Flood HistoryCWL~