In July the 43 month streak of same month year-to-year median price fell. The median Cape Coral home price in July 2013 was $210,00, and dropped to $208,000 this July. Some people will be concerned that this could signify the end of the real estate recovery. I'm 100% certain this is not only not the case, but is a welcome relief, and here's why:
* Cape Coral has less than 1,500 homes for sale as of this writing. there were 1,609 available homes a month ago. This is an 8% drop in inventory in only one month. The city had over 5,000 homes (an 18 month supply) for sale at the bottom of the market.
* The median home price drop of only $2,000 after such a lengthy run of price increases is actually a much needed breather in order to assure we don't have a "Boom & Bust" scenario as occurred after 2006. The time to be concerned is when there are three or more consecutive price decreases, which is not going to happen anytime soon.
* There is less than 4 months of home inventory due to an unusually high number of homes that went under contract in July, which is supposed to be the beginning of our very slow real estate season. If there is this level of activity during one of our three slowest months of the year, high season home sales should be quite impressive.
* Cape Coral homes sold for 96% of list price in July, another potent indicator of a strong market.
* There are only 13 homes for sale under $100,000 in the city, most in the $80's and $90's. We had over 100 homes under $100 K to start the year, 50 just a few months ago, and several hundred just a few years ago. It won't be long before homes under $100 K will be extinct, regardless of the age, location or condition.
* Pending MLS sales figures indicate that there will be an increase in same month, year-to-year home prices for the remaining months of this year compared to 2013