The Cape Coral housing market, situated in the picturesque state of Florida, offers a blend of competitive dynamics and unique trends that set it apart from other real estate landscapes. Whether you're a prospective buyer, seller, or simply someone interested in the housing market trends, understanding the current state of affairs in Cape Coral can provide valuable insights. In this article, we will delve into the recent trends, market forecasts, and competitiveness that impact the Cape Coral housing market.
Cape Coral Housing Market Trends
How is the housing market doing currently? According to Redfin, in Cape Coral, homes experience an average of 1 offer and typically sell within approximately 54 days, reflecting a market that is both active and responsive. Multiple offers on some homes contribute to the competitive nature of the real estate landscape.
Median Sale Prices
The median sale price of homes in Cape Coral stood at $386K last month, indicating a marginal 2.0% decrease compared to the previous year. This decline in prices is a noteworthy aspect that potential buyers and sellers should consider.
Price Per Square Foot
Examining the price per square foot, the data reveals a decrease of 2.1% since the previous year, with the current value resting at $229. This metric further contributes to the overall understanding of the market's pricing trends.
December 2023 Snapshot
Reviewing December 2023 specifically, home prices in Cape Coral experienced a 2.0% decline compared to the same period in the previous year. The median sale price during this month was $386K. Homes, on average, remained on the market for 54 days, slightly longer than the 51 days observed in the previous year. The number of homes sold in December 2023 increased to 439, up from 403 in the previous year.
Market Trends and Statistics
- Cape Coral's Median Sale Price vs. National Average: The median sale price in Cape Coral is 4% lower than the national average, indicating a potentially favorable market for buyers.
- Multiple Offers and Quick Sales: Some homes in Cape Coral receive multiple offers, and certain properties, known as “hot homes,” can sell for around the list price, going pending in approximately 17 days.
- Sale-to-List Price Ratio: The sale-to-list price ratio stands at 96.8%, reflecting a modest decrease of 0.68 points year-over-year.
- Homes Sold Above List Price: 9.6% of homes are sold above the list price, showing a decline of 2.6 points year-over-year.
- Homes with Price Drops: Approximately 24.7% of homes experience price drops, with a 1.0-point increase year-over-year.
Is It a Buyer's or Seller's Housing Market?
Given the competitive nature, multiple offers, and a median sale price 4% lower than the national average, Cape Coral's housing market appears to favor buyers. However, sellers should remain vigilant and strategically price their homes. There has been a 2.0% decrease in home prices in Cape Coral, as evidenced by the median sale price of $386K, compared to the previous year.
Is Now a Good Time to Buy a House in Cape Coral?
There are several factors that are contributing to the buyer's market in Cape Coral. The rising interest rates are making it more expensive to borrow money, and the stock market is also down, which has made some people less confident about their financial future. Additionally, the number of homes for sale has increased, which is giving buyers more options.
If you are looking to buy a home in Cape Coral, now is a good time to do it. Home prices are still relatively affordable, and there are plenty of homes to choose from. However, it is important to act quickly, as the market is expected to continue to soften in the coming months.
Here are some additional things to keep in mind when considering the Cape Coral housing market:
- The cost of living in Cape Coral is slightly higher than the national average.
- The weather in Cape Coral is warm and sunny year-round.
- Cape Coral is a popular tourist destination, so there is a lot of traffic and congestion during the winter months.
- The school district in Cape Coral is ranked above average.
Overall, the Cape Coral housing market is a good option for buyers who are looking for a relatively affordable home in a warm and sunny climate. However, it is important to do your research and understand the market conditions before making an offer.
Cape Coral Housing Market Forecast 2024
In the vibrant Cape Coral housing market, the average home value stands at $389,055, reflecting a modest decrease of 2.5% over the past year. According to Zillow, homes typically go pending in approximately 43 days, emphasizing the market's dynamic nature. As of December 31, 2023, there are 4,521 homes for sale, with 836 new listings, showcasing a resilient real estate landscape.
The median sale to list ratio, a key indicator, is recorded at 0.964 as of November 30, 2023. Additionally, the median sale price is $305,000, while the median list price is $349,933. Noteworthy statistics reveal 8.4% of sales surpassing the list price, with 78.3% of sales occurring below the list price.
Cape Coral MSA Housing Market Forecast
Delving into the updated forecast for the Cape Coral Metropolitan Statistical Area (MSA) for the year 2024, the market continues to exhibit intriguing dynamics. As of January 31, 2024, the forecast indicates a marginal decline of -0.4%, emphasizing the nuanced fluctuations in the real estate landscape. Looking ahead to March 31, 2024, the trend persists with a slightly deeper dip of -0.8%. However, the most notable aspect emerges in the long-term forecast by December 31, 2024, with a projected robust growth of 4.3%.
- Base Date: December 31, 2023
- January 31, 2024: -0.4%
- March 31, 2024: -0.8%
- December 31, 2024: 4.3%
The negative percentages in the early months of 2024 suggest a continuation of the moderate decline observed in the previous forecast. It's important to acknowledge these short-term fluctuations as part of the market's response to various factors such as economic conditions, interest rates, and local developments.
The Cape Coral Metropolitan Statistical Area (MSA) encompasses various counties within Florida, with a significant presence in the state's real estate landscape. This region, designated as an MSA, plays a pivotal role in shaping the housing market trends, covering diverse geographical and demographic aspects.
Market Stability and Future Outlook
Contrary to concerns about a housing market crash, the Cape Coral MSA is showcasing stability with a forecasted increase of 4.3% by November 30, 2024. This positive trajectory indicates a resilient market, dispelling fears of an imminent crash.
Top Reasons to Invest in the Cape Coral Real Estate Market
- Affordability: Compared to other cities in Florida, such as Miami and Tampa, Cape Coral offers relatively affordable housing options. This makes it an attractive market for both first-time homebuyers and real estate investors.
- Strong Growth: Historically, Cape Coral has experienced periods of strong growth in its real estate market due to its attractive waterfront properties, favorable climate, and desirable location in Southwest Florida. However, the sustainability of long-term growth in any real estate market depends on various factors, including economic conditions, population growth, job opportunities, infrastructure development, and market demand.
- Limited Supply: The Cape Coral market is characterized by a limited supply of homes, which is expected to continue to drive demand and appreciation.
- High Rental Demand: The city of Cape Coral is a popular tourist destination, which makes it an attractive market for investors looking to rent out their properties. The city's growing population also contributes to the demand for rental properties. Investing in a rental property in Cape Coral could be a good decision for the right investor. If there is a high demand for rental properties in the area and landlords are likely to find tenants quickly. Furthermore, the projected growth in the Cape Coral housing market in 2023 suggests that rental properties may appreciate in value, potentially increasing the return on investment for landlords. Additionally, Cape Coral's relatively affordable housing market compared to other cities in Florida, such as Miami and Tampa, could make it an attractive location for investors looking to purchase rental properties at a lower price point.
- Natural Beauty and Amenities: Cape Coral is situated on a waterfront and offers access to beaches, water sports, and other outdoor activities. The city also has a vibrant downtown area with shops, restaurants, and other amenities.
- Low taxes: Florida has a reputation for being a tax-friendly state, with no state income tax, no estate tax, and relatively low property taxes. This makes it an attractive destination for retirees and investors looking to maximize their income and minimize their tax burden.
- Landlord-friendly laws: Florida is known for having laws that are favorable to landlords, including quick eviction processes, laws that allow landlords to charge high late fees, and regulations that limit tenants' ability to withhold rent. This creates a more stable and predictable environment for rental property investors, reducing the risk of loss from problematic tenants or legal disputes.
- Natural Hazards: As mentioned earlier, Cape Coral is located in an area that is prone to natural hazards such as storms, floods, heat risks, droughts, and fires. This can increase insurance costs and pose a risk to property values.
- Mortgage Interest Rates: The current average 30-year fixed mortgage interest rate is relatively high at 6.94%, which can make it more difficult for buyers to afford homes and impact the demand for properties in the area.
- Local Market Complexities: As with any real estate market, there are complexities and nuances to the Cape Coral market that buyers and investors should be aware of. Working with a local partner who understands the market can help navigate these complexities and ensure informed decision-making.
- Supply Chain Disruptions: Any global supply chain disruptions can impact the availability and pricing of building materials, which can impact construction and renovation projects in the area.
Note that the current high mortgage interest rates could impact the affordability of purchasing a rental property in Cape Coral. Overall, the Cape Coral real estate market presents strong investment opportunities for those willing to navigate the complexities and risks associated with any real estate market. The potential for growth, limited supply, and rental demand makes it an attractive market for both buyers and investors. However, potential buyers and investors should weigh the risks and drawbacks associated with the market and work with local experts to make informed decisions.
Some of the information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified.