Florida has always been a popular destination for investors. With some of the highest-rated elementary schools, a rather competitive market, some of the best neighborhoods, and many other factors, it's no surprise that Cape Coral is often more popular than nearby cities.
As of April 2023, Cape Coral was considered a seller's market, as more people were looking to purchase properties than the homes selling at the moment. What does this mean for those who want to buy? Is Cape Coral a decent option for you? This article has all the answers.
We'll analyze the Cape Coral (Lee County, FL) housing market to determine whether this is a good option for those who want to buy.
Recent Trends in the Cape Coral Housing Market
Let's look at an overview of the current state of the market. This will help you have a better idea of how it has behaved over the past few months in comparison to last year.
Median Home Sold Price
Home values have changed slightly over the past few months. Overall, the average sale price in Cape Coral was $400k in January 2023, although it went down to $399,5K after March 2023. This means there was a 3.7% decrease in home prices compared to last year.
Moreover, the median sale price per square foot was $242 in March 2023, which implies a 5.5% decrease compared to last year's numbers. On average, there were 601 homes sold in Cape Coral in that same month, which is down from 751 homes last year.
Single-family homes were among the most expensive properties over the past few weeks. As of March 12, 2023, these homes sold, on average, for $414,9K.
Median Listing Home Price
The median list price in Cape Coral was $449.9K in January 2023. This implies a 13.9% increase compared to last year.
As you can see, there's only a slight difference between the listing home price and the home sold price, so as a buyer, you can expect to have more room for negotiation with the seller.
Median Days on the Market
Here's where we see a significant difference in numbers in comparison to last year. As of March 2023, most homes in Cape Coral, FL, sell after 38 days on the market. Last year, it was nine days, so this supposes a 29-day increase.
Here's where things get tricky. The market in Cape Coral is considered to be "somewhat" competitive, as some homes tend to get multiple offers, but it's not that common compared to other major cities.
The sale-to-list price went down to 97.3%. Furthermore, 11.1% of homes were sold above their listing price, and about 39.2% of homes experienced price drops these past few months.
Factors That Currently Affect the Market
Generally speaking, many different factors can affect the housing market in any city, including Cape Coral. Let's take a look at some of them:
Mortgage Interest Rates
Currently, the 30-year fixed interest rate is at 6.94%. This affects buyers directly, as it makes it harder for them to afford any property; furthermore, this also affects demand throughout the city.
Some common demographics that can affect the Cape Coral market include a person's gender, race, income, age, and others. Depending on who's moving in or out of the city, these factors could affect the average home price for some time.
Supply and Demand
A crucial factor that's affecting the market today is the limited supply and high demand. While this may be a good sign if you're looking to buy a property to buy and then rent, you may also have a hard time finding a great price for the property you're interested in.
Even though Cape Coral homes aren't necessarily "cheap," they're considered more affordable than properties in other cities like Miami. If you're a real estate agent or a first-time homebuyer, Cape Coral may be an appealing option to consider.
Local or nationwide government intervention could affect the housing market in Cape Coral. Keep in mind that by 'government intervention,' we refer to any decision or law that directly or indirectly affects the market.
Is the Local Market Likely to Crash?
Considering all the data we just mentioned, we can argue that the Cape Coral housing market is slowing down. Home prices, overall, are slowly decreasing, and while that may be worrying to some investors, many experts believe that the drop won't be drastic.
Key Statistics About the Cape Coral Housing Market
- About 37% of homebuyers in Cape Coral wanted to move out of the city, whereas the other 63% wanted to stay.
- Cape Coral hosts a wide range of highly-rated public schools, including Cape Elementary School, Gulf Elementary School, Gulf Middle School, and North Fort Myers High School.
- About 86% of homes in Cape Coral are at risk of flooding, which can put off some buyers.
- There's a rental vacancy rate of 6.8% and a homeowner vacancy rate of 3.7% from a total of over 80K units.
Even though the market saw a slight dip in value recently, Cape Coral is still considered a somewhat decent housing market compared to Miami or Tampa. However, since properties in Cape Coral are more prone to environmental/natural disasters, you should take your time before deciding if you want to invest here.
Cape Coral is expected to have a slight growth over the following months despite its current state. Considering that 11.1% of homes are sold above the list price and that 39.2% of homes experienced price drops, this could mean that buyers could have the upper hand when negotiating a better deal.
The market in Cape Coral is currently in a good place for both buyers and sellers, as there's considerable room for negotiations and offers. While it may be slightly more appealing to sellers, we believe there are also many opportunities for a few buyers.
Before you start making offers on Cape Coral properties, make sure to do proper research and evaluate each of your options carefully until you find something more suitable for your needs. You can also seek guidance from a real estate expert.
Are House Prices Dropping in Cape Coral?
Yes. Recently, Cape Coral experienced a 3.7% drop in median sale prices, and some experts believe that this trend will keep going for a while.
Is Cape Coral a 'Buyers' Market?
Currently, Cape Coral is considered to be a 'sellers' market, as prices tend to be higher, and some properties sell faster.
Is Cape Coral a Good Investment for Property Managers?
Even though Cape Coral is a 'sellers' market, there may also be a few opportunities for home investors who are looking for an attractive property to rent later.