Rental prices for Cape Coral homes have been making a slow but steady upward climb since
last fall when inventory began to shrink. This is good news for SW Florida and Cape Coral
property investors who were hoping they had made the right decision, --buying into vacation
property while inventory was at an all time high. Now, those investors are reaping the benefits
as tenants are resigning leases at higher rates, a trend that is predicted to continue as the
economy strengthens.
What a Difference a Couple of Years Can Make
Just two years ago, Cape Coral real estate opportunities seemed endless. With so much
available inventory, some who were toying with the idea of investing wondered if the area
was truly set for a rebound or not. Those who visited the area to scope out the market had to
overlook the dozens of foreclosure signs in every neighborhood and try to envision a time in
the future when things would return to normal. For some, who held numerous properties, the
low prices and long list of available homes felt like a goldmine. One area investor, who owns
over forty properties in SW Florida, said it best, "Florida is unique. Regardless of the economy,
American's will always have the dream of retiring to a tropical paradise. As long as that dream is
alive, investing in SW Florida property will be a smart decision."
Although it may not be quite that simple, the fact that SW Florida has the winning edge when it
comes to vacation choices for most of the United States is a definite plus.
Did You Miss the Boat?
Now that the availability of homes has seemed to decline, area investors who didn't take the
initial opportunity to buy into paradise may feel like they missed the boat. At first glance, that
would seem like a pretty accurate assumption, but let's take a look. There's good news on the
horizon.
A Second Wave of Inventory (Second Wave of Opportunity)
For Cape Coral property, the rebound in prices over the past year was partially due to banks
holding their inventory. As opportunities shrink, prices naturally begin to rise. As with anything
else, the real estate market is a supply and demand business. Is that set to change? It appears
that way. Last month (October, 2011) foreclosure filings experienced a 44% increase, as major
banks began to work through a second wave of processing. Bank of America, Countrywide's
owner, led the way with 170 early-stage foreclosure filings for October, compared to 118 in
September. For the smart investor, this means a second wave of opportunity is on the horizon.
Realtors and investors who've recently felt the frustration of having to place multiple offer bids
may be in for a nice Christmas gift if the timing is right.
Who is best set to reap the benefits of this second wave of inventory? According to the Herald
Tribune's recent report, cash buyers and investors looking for residual income have a golden
opportunity. With mortgage loan restrictions tightened, borrowers won't be flooding the
market to buy up all the inventory. Instead, cash buyers will have the upper hand and increased
purchasing power. On the other side of the coin, the next wave of foreclosures will bring a
whole new group of former home owners who will be looking for rentals while they work to
rebuild their credit. It's definitely a win-win situation for the cash buyer.
If you are one of the potential investors who felt you missed out on the last wave of
opportunity, here's your "second chance" for investment success. Give us a call today.
We'll help you locate the best , Bonita Springs, Fort Myers, Lehigh, or Cape Coral property. From Cape Coral
waterfront to riverside Fort Myers, we have what you're looking for.
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