See article here
Prices are down – yes. They are down. Why? Because
Many builders wanted to help these un-savvy investors & offered great deals like $1,000 down & no-interest/no-payment pre-construction loans through partner lenders. GREAT. NOT. I talk to these people on a daily basis. They can’t afford these houses. But none of them had a plan B. They all believed their friends/Real Estate Agent/Mortgage Broker/Lender that they’d be able to sell upon completion & make thousands. Why did they say this?
Most probably believed that this would keep happening. Some might have outright LIED though. But, MANY made A LOT of money in real estate from 2001-2005.
Heck, condos were still selling for under $50,000 back in 2001. Gulf access homes under $250,000 & regular houses as low as $100,000 & land; well you could buy land in Cape Coral for $1,500 in 2001.
In 2003, condos were closer to $100,000, gulf access homes in the $300-400 range, these regular little homes in the mid-150s & land all the way up to $20,000.
Sure, the city was growing but that much? Was it sustainable?
Then low & behold in 2005, condos were about $150-200,000, gulf access homes over $500,000, small homes $200-250,000 & land peaked at about $90,000! WOW. Many speculators were still buying and/or waiting for their new homes to be constructed. Everyone wanted a piece of the action. Every John, Joey & Susie was
All of 2006 the prices went down due to oversupply. Condos were down to about $100,000 again, gulf access homes in the $300-400 range again, small homes to about $150-175,000 & land to $50,000. Not too bad, more like 2004 pricing BUT…..
We continued to decline in 2007. Now, as I write this at the end of 2007, you can purchase condos in Cape Coral for $75,000+, gulf access homes in the $200s, small homes just over $100,000 & vacant land for about $20,000. Mind you I am referring to the least expensive properties available in each category, but still.
What will happen next year - 2008? We still have an over supply of homes. Many new homeowners are upside down in value on homes purchased in 2003-2006. Some will stick it out & others will throw their hands up in the air. You can now rent a new house in Cape Coral for about $800-900/month. Many choose this over owning their own home & paying $1,500-2,000/month in PITI.
Wait though. I’m not about the doom & gloom. This is what we need to do. We need to help those who are in a true hardship situation. There are always those but honestly over the past few years people could refinance or sell their over-valued homes to bail themselves out. That is definitely not the case anymore. We need to address the issues, work through the short sales & sell off the bank owned homes to new owners.
Many people are still moving into Cape Coral. Our growth is still good. Many people who could not afford Cape Coral in the past few years can now afford the housing. You still can’t find another area like ours with these prices.
Cape Coral is a peninsula, which means we are surrounded by water on 3 sides. The East side is the Caloosahatchee River; the West side is barrier islands & the Gulf of Mexico. The south side is a combination of the two e/w sides. Our weather, even today, 2 days prior to Christmas, mid 70s :). And NO, it doesn’t SNOW here ;)
Cape Coral has over 400 miles of canals – some leading out to the Gulf of Mexico, others to freshwater lakes. New shopping & restaurants are everywhere – and you know what? All of these places are PACKED.
We have homes from under $100,000 all the way into the millions. We have beautiful gulf access luxury homes along with small condos. Many of our more upscale gulf access neighborhoods have been holding their values with a few speculator homes speckled in.
I have lived in Cape Coral for over 13 years now & I just love it. Watching it grow from a sleepy unknown city to an overbuilt city & now adjusting back to normal has been more than interesting.
If you’d like to see Cape Coral & the housing options available please contact us today. Many opportunities to purchase homes for personal use or invest for the future are available. Our customers continue to be impressed with the options available & the future growth to come as well. Cape Coral truly is a waterfront paradise & we can help you find the best deal out there. We also service sellers – even those facing foreclosure.
Yours in Success,
Susan Milner, Licensed Real Estate Broker-Sales Associate & e-PRO GRI REALTOR®
http://www.SusanMilner.com - search the entire MLS from my site!
Sellstate Achievers Realty Network, Inc
Copyright Susan Milner, 2007 all rights reserved.