Home Buying in 33993>Question Details

Terrance J L…, Home Buyer in Holley, NY

OK..why are property values so depressed in cape coral? Is there a high insurance rate, water problems,?

Asked by Terrance J Lang, Holley, NY Thu Jan 29, 2009

Are ther flooding issues? , water problems? high insurance rates? why are the properties so cheap?

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Answers

22
Dear Terrance,

The answer is pretty simple, we have too much supply and not enough demand. During the 2004-2006 time frame there were too many new homes built for speculation. These homes were built by investors and not people who intended to live in them for the most part. During our peak we were building over 700 homes a month in Cape Coral. The reason that investors were building them is the same reason Cape Coral will eventually stabilize and heal, the weather/quality of life. Cape Coral was one of the fastes growing cities for many years. If you look at my blog on http://www.capecoralfinehomes.com you will see some statistical information in the form of graphs that indicates some pretty exciting activity going on right now. Home prices have fallen to the point that buyers are jumping in again. Cape Coral is unlike areas like Michigan where the economic issues will probably prevent there from ever being a come back. Due to supply, the banks are determining the value of real estate as they discount their foreclosures. Houses that cost upwards of $90 per sq ft to build only a few years ago can be bought for $60 or less while the banks unload their foreclosures. I believe that we are witnessing a once in a lifetime buying opportunity and the fact that we are selling more homes now throught the MLS than we were in the peak, I believe, is evidence. There is a great deal more that we can discuss if you are interested. If you would like to discuss any of this or if I can help you in any way please feel free to email or call.

Steve Koffman
Century 21 Sunbelt
#1 Team in Florida 2003-2008
239-443-2463
Steve@Koffman.com
1 vote Thank Flag Link Thu Jan 29, 2009
yes, too many speculators and the housing bubble burst...plus, chinese dry wall, taxes are extreme, impact fees to build are borderline illegal, gang growth in cape coral, illegal immigrant population expanding, not enough jobs to support the population, corrupt officials..you name it and its Cape Coral...It is not the place I moved to 25 years ago..crime rate in increasing rapidly...sorry, nothing good to say about it anymore.
0 votes Thank Flag Link Fri Oct 1, 2010
I guess I should rethink my plans for moving to Cape Coral after seeing some of these answers. How's Port Charlotte?
0 votes Thank Flag Link Fri Oct 1, 2010
We have been second home (Condo) owners in the Cape for 15 years and this year we have been wiped out by our upstairs neighbour. Their water heater has bust and water has come down and destroyed our home including carpets, walls and furniture on our own lovely condo.
We are being told that we should just simply claim on our own insurance - but we don't have any because we are UK residents and thus do not have the US social security number. Also our apartment is ground floor next to a canal and because it is an old one (60's) so it is not above the flood level.
This all means that we cannot get insurance and the condo association is now telling us that neither they nor the offending aprtment have any liabilty to us to fix our ruined home.
This is, we are told, because the law in Cape Coral means that it is every man for himself with regard to interior condo fittings etc. It is even worse that that becuase we also had to spend $4000 to get the place dried out to prevent being sued by the association in case mold occurred.
So to sum up if you want to live in the Cape and just keep to yourself and get on with your life, you can still be completely trashed by your neighbours (who had done exactly the same thing to our next door unit last year) and its just tough luck on you but you are stuffed....
Buy in Cape Coral? I would rather poke myself in the eye....!
UK Owner
0 votes Thank Flag Link Fri Oct 1, 2010
Hi Terrance,
Just as the others have said, this is not a depressed area, just one affected by the housing burst. It is a great time to buy here and many are taking advantage. These prices will not last long as homes priced right are selling fast and in some cases above asking price.
0 votes Thank Flag Link Fri Oct 1, 2010
yes, too many speculators and the housing bubble burst...plus, chinese dry wall, taxes are extreme, impact fees to build are borderline illegal, gang growth in cape coral, illegal immigrant population expanding, not enough jobs to support the population, corrupt officials..you name it and its Cape Coral...It is not the place I moved to 25 years ago..crime rate in increasing rapidly...sorry, nothing good to say about it anymore.
0 votes Thank Flag Link Fri Oct 1, 2010
Interesting topic! I sure hope property values start to pick up again.
0 votes Thank Flag Link Fri Oct 1, 2010
Cape Coral is a fairly new city. This November the city will celebrate its 40th anniversary at the annual Coconut festival. The market crash we endured was a combination of many factors, and not isolated to Cape Coral. There are other areas that took a severe hit, as well. Properties are cheap, but I don't see that happening forever. We are a undervalued city, there is no doubt about it. The reason I chose to live in Cape Coral is for the abundance of Gulf Access properties. If you enjoy boating, then Cape Coral is for you! I also enjoy all the parks and rec activities the City sponsers. My favorite event is the Holiday Festival. Depressed values make for a good buying opportunity. I believe in there are better days ahead for Cape Coral.
0 votes Thank Flag Link Thu Sep 9, 2010
Mr. Washburn,
Thank you very much, I am very interested in learning more about our new home state.
0 votes Thank Flag Link Thu Sep 9, 2010
@cgrable

The challenges you highlight about Cape Coral trace way back to the communities roots as a plated community designed to maximize the original developers profits. Unfortunately at that time in the late 50s and early 60s there were not city planners involved in the process.

If you are interested in the history of Cape Coral, there is a book about the development of Cape Coral by David Drodill that really helped me understand why it was designed with the challenges that you have highlighted: http://www.amazon.com/gp/product/0817311890?ie=UTF8&tag=…
0 votes Thank Flag Link Thu Sep 9, 2010
We just moved here from California and from a buyers perspective, I never thought I would say that there was more thought put into the developments in California but there was. With new houses spattered across the area on well water and septic systems nobody is going to buy them, especially when the utilities themselves are not even stable. See in California there was thought put into each neighborhood, no power lines have been put up since the 80's. Here with the thunderstorms I assumed (I know bad idea) that all the utilities would have been smart and put them underground. This would stop the power loss throughout the summer. The bottom line to me is, why would I buy in Cape Coral? What sets the Cape apart from Ft Meyers? In my opinion, and this is strictly an opinion, the planning and development has been horrible at best. The city planners and managers honestly would have all been fired or should be. If you compare a neighborhood of similar facet here in the Cape to one in California there is obviously much more thought that went into the development on the west coast.
0 votes Thank Flag Link Thu Sep 9, 2010
I guess I should rethink my plans for moving to Cape Coral after seeing some of these answers. How's Port Charlotte?
0 votes Thank Flag Link Sun May 9, 2010
We have been second home (Condo) owners in the Cape for 15 years and this year we have been wiped out by our upstairs neighbour. Their water heater has bust and water has come down and destroyed our home including carpets, walls and furniture on our own lovely condo.
We are being told that we should just simply claim on our own insurance - but we don't have any because we are UK residents and thus do not have the US social security number. Also our apartment is ground floor next to a canal and because it is an old one (60's) so it is not above the flood level.
This all means that we cannot get insurance and the condo association is now telling us that neither they nor the offending aprtment have any liabilty to us to fix our ruined home.
This is, we are told, because the law in Cape Coral means that it is every man for himself with regard to interior condo fittings etc. It is even worse that that becuase we also had to spend $4000 to get the place dried out to prevent being sued by the association in case mold occurred.
So to sum up if you want to live in the Cape and just keep to yourself and get on with your life, you can still be completely trashed by your neighbours (who had done exactly the same thing to our next door unit last year) and its just tough luck on you but you are stuffed....
Buy in Cape Coral? I would rather poke myself in the eye....!
UK Owner
0 votes Thank Flag Link Mon May 3, 2010
We have been second home (Condo) owners in the Cape for 15 years and this year we have been wiped out by our upstairs neighbour. Their water heater has bust and water has come down and destroyed our home including carpets, walls and furniture on our own lovely condo.
We are being told that we should just simply claim on our own insurance - but we don't have any because we are UK residents and thus do not have the US social security number. Also our apartment is ground floor next to a canal and because it is an old one (60's) so it is not above the flood level.
This all means that we cannot get insurance and the condo association is now telling us that neither they nor the offending aprtment have any liabilty to us to fix our ruined home.
This is, we are told, because the law in Cape Coral means that it is every man for himself with regard to interior condo fittings etc. It is even worse that that becuase we also had to spend $4000 to get the place dried out to prevent being sued by the association in case mold occurred.
So to sum up if you want to live in the Cape and just keep to yourself and get on with your life, you can still be completely trashed by your neighbours (who had done exactly the same thing to our next door unit last year) and its just tough luck on you but you are stuffed....
Buy in Cape Coral? I would rather poke myself in the eye....!
UK Owner
0 votes Thank Flag Link Mon May 3, 2010
yes, too many speculators and the housing bubble burst...plus, chinese dry wall, taxes are extreme, impact fees to build are borderline illegal, gang growth in cape coral, illegal immigrant population expanding, not enough jobs to support the population, corrupt officials..you name it and its Cape Coral...It is not the place I moved to 25 years ago..crime rate in increasing rapidly...sorry, nothing good to say about it anymore.
0 votes Thank Flag Link Mon Mar 1, 2010
Wow, that last answer sure paints a bleak picture. Here in Florida, we also have a program called My Safe Florida Home, when a licensed wind mitigation inspector comes to the home, professionally inspects and analyzes, and makes recommendations to the homeowner. These recommendations can be minor, like adding additional strapping to the roof or it can be major, like replacing a skylight with a Miami/Dade wind rated skylight. Once the recommendations have been met, a second, final inspection can be made. This report, when submitted to your insurance agent, can reduce an insurance policy drastically. I have an owner/client that followed the recommendations and saved a lot on her 1988-built home. I hope this helps you gain a better perspective on insurance. Since property values have gone down (mostly as a result of supply and demand), insurance rates have also declined. Once a buyer has selected a property, I often ask my colleagues in insurance to provide a quick quote for that property. That way, there are no unknown expenses or surprises as we approach closing day.
0 votes Thank Flag Link Tue Feb 24, 2009
if you buy any property in florida built 25 years ago or older , you will have only one insurance company write you a wind policy . Citizens Property Insurance Corporation is the State's homeowners' insurance It was created by the Legislature in 2002 to offer property coverage to Floridians without private insurance options.
Trust me you will pay dearly ! here is what im paying on my 4-plex built in 1983
$ 3200.00 yearly < THAT'S WITH NEVER PUTTING ANY CLAIMS IN " EVER " GOD HELP YOU IF YOU DO.. YOUR INSURANCE WILL GO UP AROUND 38 % IN SOME CASES .
If you try to shop around GOOD LUCK getting anyone to quote you a price or even call you back.
0 votes Thank Flag Link Tue Feb 24, 2009
Hi Terrance,
Just as the others have said, this is not a depressed area, just one affected by the housing burst. It is a great time to buy here and many are taking advantage. These prices will not last long as homes priced right are selling fast and in some cases above asking price.
Best of Luck,
Nancy

Nancy Doyle
239-209-2237
search Cape Coral, Fort Myers mls http://www.nancyd.listingbook.com
0 votes Thank Flag Link Thu Jan 29, 2009
Terrance,
Cape Coral is suffering the same pains as many communities in the country. Over supply and lack of demand.
However there is hope on the horizon as prices drop buyers will see the value and start to peck away at the inventory.
Hang in there. We are seeing inventory move as the Affordabilty Index goes up. As mentioned before We are in Florida and its a great time to buy.
Rick.
0 votes Thank Flag Link Thu Jan 29, 2009
I have to tell you that things are changing here. Inventory levels are on a downward trend. There are many properties being sold here, many are selling for over list price.
I would not call it a depressing time for a buyer, I would call it a Great opportunity to buy at the bottom. Remember, it is still Florida, No Snow, warm temps and we are surrounded by water.
Web Reference: http://www.capecoralc21.com
0 votes Thank Flag Link Thu Jan 29, 2009
There are a number of reasons why property values have dropped so dramatically in Cape Coral. The ones you touched on including high insurance rates and expensive utility hook-ups are certainly contributing factors, but not necessarily the key drivers.

First on the list is the over-supply of homes. Cape Coral was ground zero for speculators during the real estate boom. Speculation on vacant land was the first phase and then entry-level starter homes as well. As these speculators go bust and walk away, more and more bank-owned homes flood the market, further chipping away at pricing levels.

A second major challenge for Cape Coral is the lack of economic diversity. We are pretty much a one industry city and that industry is real estate/development. Cape Coral has not been successful over the years in attracting new companies and industries to put down their roots in the city. High paying jobs are scarce in Cape Coral.

Despite these challenges, 264 days of sunshine and an average temperature in the mid 70s is attractive to many living up north suffering through one of the worst winters in many years!
0 votes Thank Flag Link Thu Jan 29, 2009
Terrance,

There was huge speculation in the area and houses were going up faster than they could be sold at unrealistic prices. When the housing market crashed this was one of the first areas that felt it. There are no real issues except those that I have stated. The island is inthe middle of switching over the old septic to sewer and city water so this caused issues for some home owners in the area.

Thanks,

Scott Riddle, (CSP) Certified Short Sale Professional
Sand Castle Realty Group
239-289-1849
239-390-0027 fax
http://www.NaplesRealEstatePros.com
http://www.ScottRiddle.topseller.net
0 votes Thank Flag Link Thu Jan 29, 2009
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