Cape Coral Home Prices Break $300K . . . 1st Time in 12 Years
April’s Cape Coral home prices reached the $300K plateau for the first time since May 2007. It has been a long time coming. Sales prices came close to $300K a few times last year, but it feels good to have finally passed this milestone. The average Cape home price in April was $303,000 compared to $297,500 last April. List-to-sale price held steady at 97.2%, and Cape Coral home inventory is currently at 4.4 months. The highest that Cape home prices reached was in January of 2006 at $378,000, so we still have a ways to go to reach that previous peak. Tom: I expect we'll surpass previous peak prices sometime in the next 5 to 7 years, possibly sooner if the economy remains robust.
There were 501 Cape home sales in April, which is a healthy monthly figure, but lower than last April’s 555 home sales. Part of the reason we’ll see lower sales numbers than in the past but prices still going higher (or holding steady) is because of the increasing number of new homes being built. Many of these new homes are built specifically for individual homeowners and are not reflected in MLS sales numbers. The new "spec" homes that are sold on the open market and reflected in the MLS stats tend to increase prices.
Two More National Accolades for Cape Coral/Ft Myers
· 7th Fastest Growing Metro Area in the Country: Per U.S. Census Bureau
· “Best Places to Live 2019”: U.S. News and World Report ranks Cape Coral/Ft Myers as the third-overall best place to live in Florida and 35th nationally. U.S News used job market, affordability, quality of life and the “desirability” of the cities to create their rankings. Sue: we think our area is the number one “best place to live, work, play, and vacation”
Chiquita Boat Lock Update
In mid-April the Chiquita Boat Lock dispute moved to court. There were two days of hearings presented by those opposing the removal of the lock versus the city of Cape Coral, the Florida Department of Environmental Protection, and numerous residents living behind the lock who would like the lock removed.
The judge’s decision is scheduled to be rendered within 45 days of the hearing so we hope to have a final decision for you in our June Market Update.
Luxury RV Park Under Construction
The Myriad Motorcoach Resort, at the corner of Burnt Store Rd and Durden Pkwy in the NW Cape (a mile and a half south of Burnt Store Marina) has a slew of bulldozers and front-end loaders working diligently at Cape Coral's newest jewel. The 90-acre lake project is a 285-lot facility with waterfront lots for luxury motorhomes ranging from 6,300 to 11,000 square feet. Some non-waterfront lots will be smaller. The resort is called Myriad "because the relaxing and adventurous opportunities are unlimited".
Myriad has begun taking lot reservations with prices ranging from $155,000 to $240,000, with a monthly fee of about $300. Owners will not be able to live in their motorcoaches more than 180 days a year but can put their property in a rental pool to be managed by the resort’s property management team. Lakefront lots are expected to rent for $140 a day.
Owners will be allowed to build docks and use electric boats. Many owners will build a 600-foot villa to use as guest quarters and space for entertainment. Construction of a plush clubhouse is scheduled to begin in winter of 2020. Water and sewer to serve the Myriad development are being installed by Charlotte County. The temporary nature of the residency will place minimal pressure on city schools or health and safety services. Sue: We normally are not happy to have mobile home parks in our tranquil oasis (and we only have a few small mobile home parks), but this luxury RV park will be a prestigious welcome to our area and a boon to our economy, and some of the motorhomes will be more expensive than the average home in Cape Coral.
Another New Restaurant In Cape Coral
And yet another new restaurant in the Cape. Danger Danger recently opened - a collaborative effort from the owners of Nice Guys and Nevermind. The place is small – just 11 seats, with a fun, funky vibe, and focuses on take-out. The creative menu ranges from vegan pizza and falafel to fried pig ears and fried chicken. Foodies and those with adventurous palates will love Danger Danger which so far is receiving great reviews on Yelp and TripAdvisor. Located at 1017 Cape Coral Pkwy E, on the back side of the same plaza as Iguana Mia. Sue:There are now so many diverse restaurants in Cape Coral, surely there's something to appeal to everyone.
Facts & Stats
Quicken Loans Will Now Consider Rental Income for Loan Refi: Quicken Loans has partnered with vacation firm VRBO to allow homeowners to use short-term rental income to qualify for a mortgage refinance. Fannie Mae also partnered with Airbnb and some lenders to allow short-term rental income for loan qualification. Previously, only long-term rental income from investment property was considered when applying for a mortgage. Tom: Great news for our many seasonal homeowners.
Home Value Drop Expectation in Florida Very Low: According to the global chief economist for Arch Capital Services, there is only a 6% chance of Florida home values declining in two years. And, the much higher risk (25%) in Miami suggests the chances are even lower than 6% for cities in the rest of the state.
Although a recession is inevitable at some point, it will be far less severe than the Great Depression. The study by Arch Capital suggests that the current housing market is underbuilt by more than a million homes, buyers are more cautious, and loan quality is far higher than in the previous recession. In 2007, conditions were completely flipped: housing was hugely overbuilt, speculative demand was off the charts and the market was awash with high-risk loans.
Recession Lesson: Fewer Owners Tapping Home Equity: Despite a record $1.5 trillion in home equity available to them, homeowners are doing something surprising….and very wise. They are tapping into their equity far less via HELOC’s and cash-out refinancing. Freddie Mac reports that the volume of “cash-out refinancings” remains much lower than the previous decade. An estimated $14.8 billion in net equity was cashed out during the final quarter of 2018, down from $20.4 billion a year earlier, and dramatically below the $104 billion in the second quarter of 2006, near the peak of the boom.
Two major factors are contributing to this fiscal frugality: interest rate movements upward and the hard, scary lessons learned by many during the last recession, when millions of owners who took out HELOC’s, leveraging their homes to the hilt – ultimately lost their homes in the crash. Many have still not recovered, and the bad memory is embedded in many homeowner’s minds. Tom: additional rational as to why the current “shift” is not having a major negative impact on our local real estate market.
Busiest Real Estate Month in Florida? According to Florida Realtors Chief Economist, March is typically the busiest month for real estate in Florida, and March 2019 was no exception. 31,383 Florida single-family homes went pending in March, the highest number in any month across the previous 11 years.
Flood Insurance Reminder: June is the official start of hurricane season, so if you don't have your flood insurance you should get it ASAP. There is a 30 day wait from application date.
Is The Real Estate Shift Done Shifting? - SWFL Home Prices Continue To Rise During "Shift" - Cape Coral #29 Safest City In U.S.
Local Real Estate Market Holding Steady - Massive Income Tax Exodus - Beach Business Strong Again
Governor DiSantis Keeping His Word About Improving South Florida Water Quality - Local Real Estate Market Snapshot - Cape Coral & Punta Gorda Two Fastest Growing U.S. Retirement Towns
2018 Wrap Up And 2019 Expectations - SWFL Million Dollar Home Sales Stay Strong - Gov. DeSantis Signs Order To Fight Algae And Red Tide
SWFL Real Estate Has Another Positive Month - Chiquita Boat Lock Removal Update - Snowbirds Arrived Early
Why Aren't Homeowners Becoming Sellers? - Local Real Estate Prices on Upswing Again in Oct - Kiplinger: Fla. #4 Tax-friendly State – and Top 3 Are Cold - Hurricane-Proofing Fla. Homes Worth the Cost
More Accolades Heaped On Cape Coral And Ft Myers - Cape Population Likely To Reach 200,000 Full-Time Residents In 2019 - FL Ranks 4th In U.S. For High-Earners And Affluent Families
Local Real Estate Market Holding Steady - Kiplinger Ranks Fla. No 8 for Job-Growth Rate - U.S. Tax Overhaul Causing High-Income People to Flee Many States
Chiquita Boat Lock Update - 2018 Property Tax Rates Released - 95% Likelihood Home Prices Will Rise Over Next Two Years
Low & Mid-Priced Home Sales Very Strong in Cape Coral - Baby Boomers Top Retirement Concerns - New $25K Florida Homestead Property-Tax Break on Nov. 6 Ballot
Cape Coral/Ft Myers 2nd “Best Place People are Moving to in 2018” - Cape Home Prices Rise $22K Over May 2017 – Ft Myers/FtMyers Beach Up $40K & Construction Costs Rising - Florida Ranks No.1 as “Best State for Military Retirees”
Cape Coral Real Estate Bounces Back from Weak 1st Quarter - Tax Reform Already Boosting Demand for Florida Real Estate - Keep Interest Rates in Perspective