Sunan40, Home Seller in Cape Coral, FL

What are the current projections for Cape Coral's real estate market? When will sales increase? We have been waiting 3 years to sell our home

Asked by Sunan40, Cape Coral, FL Thu Aug 5, 2010

We had to move out of florida 3 years ago and could not sell the home so we rented it. We can't build/buy until we can sell the home, can't afford to take a loss on it, but we are losing money every month to hold onto it, not to mention the stress of being a landlord over 1000 miles away. We have been waiting for the market to pick up so we can sell it, but the stress is killing us.

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Susan40, I can feel for your pain. And I want to say I am sorry for the situation you have found yourself. I think a good place to start is an article from the Wall Street Journal, "When its OK to walk Away from your home." It was an article suggesting you have to do the Math. If your home has lost 25% or more the author suggests that is the point of no return. For Cape Coral, that meant 2008, home values have lost over 47% from the peek. It has continued to drop year after year. Assuming we are at the bottom, and we have a 4% increase year after year, it will take 17 years to regain the value. If you purchased the property post 1999, you are probably in a tough spot. Now, your concern is what are the ramifications of a Short Sale? Can they come after you for the deficiency?(YES, and if you don't deal with it a the short sale, they will. But a good realtor will get you 100% waiver, every time, or cancel the sale!)(most realtors wont do that) What are the tax ramifications, Mortgage Tax Relief Act 2007 should cover you there...(but always ask your accountant). Will you be able to buy because your credit is "wrecked." Truly, you will likely have to rent for 24 months, which you have already done so that shouldn't be a concern. If you really work at "correcting" your credit; save, pay off credit cards every month, buy down your car note, ect...then you could purchase a home in as little as 18 months. We have a client that did, and he was not, your "A" paper either. Very much Joe the Plumber. I know the information I present isn’t roses in any way. However, you want a realtor that truly knows how to help you, not a realtor that tells you what you want to hear. You need to demand from your realtor, that you will get 100% waiver on the difference from the sale amount and the loss the bank incurs. There is light at the end of the tunnel, do not postpone the inevitable. You are throwing money out each month, OH and by the way you can do a short sale without missing many mortgage payments. PS, remember that the snowbird season is the best time to sell in Cape Coral. Don’t miss out on getting your house sold this winter. If you want a good realtor, ask me for referrals, I have helped hundreds of home owners complete a short sale. Thank you…Justin Ruzicka, The House-Guy…Office: 239-337-7387.
2 votes Thank Flag Link Fri Dec 17, 2010
Dear Sunan,

There is great expectation in our industry for the present improvement in sales. There are positive signs form all reports that Florida's economy is on a rebound. Positive reports on the new governors direction in cutting costs and focusing on jobs. The raise in the cost of fuel is ushering potential inflation which may be the start of an increase of the price of goods across the board. It will will have a potential impact on the future of real estate.
If you are thinking of selling it is advisable to do so before rates start climbing again. Naturally a weak economy with rising costs and higher rate of interest forecasted could create continuos hardships to our ailing market . Real Estate is regional with decisions of activity as unique to one's area of location as to the the financial well being of the seller or buyer creating the demand.

Making the right decision is very personal I wish you the best of luck in the New Year arriving to the one that suits you.

Gabe
0 votes Thank Flag Link Fri Jan 7, 2011
Hi Sunan, I hope that you made the right decision for yourself in regards to your investment property. You were uncertain if you should sell or hold. I wonder what you decided? Its a New Year and we can now look back at our answers. There was a debate amongst the Professionals if the Cape Coral market was on a downward trend or an upward trend. I predicted upward. So far so good. This article published in the News Press today sums up the year 2010 for Cape Coral, Florida. Best wishes in 2011.

Megan Eister
Broker, Florida WestShore Realty
(239) 415-6500
http://www.floridawestshorerealty.com
0 votes Thank Flag Link Fri Jan 7, 2011
HI Sunan,

I congratulate you on holding on with your home in Cape Coral.I like Megan's take but it is true that as long as we do not have a strong unemployement and foreclosure/short sale drop, it is going to be a buyer's market. We have had a small price increase in 2010 but if you could hold on to your home for another year it may be best.Of course I would need the details of your purchase to make a more detailed analysis. What you owe and what is the difference between what you could get and the loan. Many believe its going to take 3-4 years before we see some real average home value increase. I am more optiistic but again I would need to see how much you paid for it and what you are facing if you were to sell it now and take a loss...which you cannot afford you say. The botton line is how much are you loosing every year.
you may call me anytime,

LLoyd Nichols

LLoyd Nichols
Sandals Realty
cell: 239-810-2980
office: 239-463-5217
0 votes Thank Flag Link Mon Dec 13, 2010
Latest Market news......According to the latest Data published by the National Association of Realtors, Cape Coral/Fort Myers has seen a 3% price increase as of the third quarter of 2010. You can view the report yourself using this web address. The Data also showed employment on an upward trend and 60 and 90 day mortgage delinquencies have decreased, suggesting a possible future decrease in new foreclosures.

http://www.floridarealtors.org/Research/upload/lmr_fl_fortmy…
0 votes Thank Flag Link Mon Nov 29, 2010
Recently, Moody’s Analytics economist Chris Lafakis predicted substantial growth in Florida’s economy. He further commented ,“The story of pent-up demand is true in no place more so than Florida." Moody's also predicted that Florida may have the highest job growth for 2011 in the country. Guess which sector will be leading the way? CONSTRUCTION! The largest job growth, 26.7 percent, is anticipated for the state’s construction industry. I believe that Lee County will see job growth in 2011, I believe we will have a very active Real Estate market this winter.
http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=250149
0 votes Thank Flag Link Mon Nov 15, 2010
Business Week has an article about the housing markets most likely to see price increases over the next four years. It breaks out the top markets nationally as well as the top sub-market in each state poised for recovery.

While the Fort Myers-Cape Coral market is not highlighted in the article, one market in Florida, Panama City, cracked the top 10 list with expected gains of 26.9% over the next four years. The article does cite Naples Florida as a market expected to see lower prices over the next four years. Here is a link to the Business Week article: http://www.businessweek.com/lifestyle/content/aug2010/bw2010…

As I mentioned in an earlier response, the biggest challenge for the Fort Myers-Cape Coral area is high unemployment and the lack of job growth. Much of our real estate market is currently being driven by out-of-town buyers rather than local Floridians. To see strong housing price recoveries, we need our workforce to see better job opportunities and income growth.
Web Reference: http://www.gulfreturns.com/
0 votes Thank Flag Link Mon Aug 9, 2010
Hello again,

I live and work in Cape Coral, Florida. Most folks deciding to enter into a short sale didn't want to walk away from responsibility. Most people did the best they could, as long as they could. I know many people thought they WERE prepared for the worst. However, the crisis our area is facing is unprecedented. The stress that Sunan40 mentions has caused families to go through depression, divorce, and other negative consequences. Most agents all over this Country have walked into a foreclosure at some point and seen the pain foreclosure causes. This pain is exhibited by the photos left behind, mirrors smashed, etc....You can visibly see the frustration and anger.

A short sale is a reasonable way to get out of a situation that can't be cured by waiting for values to increase. That is why it is offered by lending instituations as an option. I respect the people who can afford their home or asset and are waiting for brighter days. They surely will come. However, I also respect the folks who are trying to be proactive about their situation, too.

No one can predict the future. Personally, as I have said, I am optimistic about Cape Coral Real Estate. It is a wonderful community and recovery is underway. I see the progress everyday. There isn't a city in North America that offers as many canals with access to the Gulf of Mexico. I love it here! Buyers are here from all over the WORLD.

I respect my colleagues' opinions, whether they agree with me or not. Some may think it is headed downward, and that's ok. It is another point of view, and only time will tell...


Sincerely,


Megan Eister
Broker, Florida WestShore Realty
0 votes Thank Flag Link Mon Aug 9, 2010
Every year we are made aware of the active hurricane season. We have become accustomed to this threat. We are reminded to prepare and protect our loved ones and our properties.
Some run in panic and leave the state. Some seek protection in shelters. Many weather the storm and remain and hold on and hope that they prepared and made their home safe .
Preparing for storms is quite like preparing for difficult times in life. Living in Florida i have learned both lessons.
I would not give up on Florida for it is a place I chose for life. I enjoy my home here for not what it is wort but the pleasures it gives us every day. Like hard times turn to better times the storm passes and the sun does shine.
Many return after the storm and glad to find their home in one piece. Some not so fortunate need to make costly repairs. Some who had no insurance no protection are truly victims for they have lost more than money they lost their home. We cannot be prepared for everything that life throws at us but we do the best we can.
Being prepared for the worst has always been my motto. There are few surprises and in most cases things turn out better than expected.
0 votes Thank Flag Link Sun Aug 8, 2010
Scott,

Clarify your position. Are you suggesting what? Give up ? Stop Paying? Short Sale? Foreclosure? Doom and gloom?
You said:
MY projections for Cape Coral real estate is downward, NOT upward. And I don't care how many economists or talking heads for NAR predict increases in prices. It's not happening. Of course someone working for NAR is going to predict a rosy picture for real estate, it's what he's paid to do. I'd like to see how long he'd last if he starts telling the truth. About one week. In Florida, he's dead wrong. I'm here, on the ground, in my area, fielding calls, doing business, and I see downward pressure on prices daily.


What is that you do sell Scott bomb shelters? The Real Estate Business has to do with Selling homes.
Obviously your problem starts there you don't know what you are doing?
In every market the decision and the responsibility of a purchase or sale is left up to the buyer and the seller.
In every market it takes responsibility and financial capabilities to accomplish that goal.
Irresponsible people make irrational decisions. Irresponsible realtors give wrong advice.
I have learned that you buy real estate when you need it when you can afford it and where you like it. I don't remember ever selling real estate with the idea to dump it for a loss.

I guess the learning curve for most realtors is to find an affordable home that fits the buyers capabilities. Making sure that they have enough of a down payment and equity. Make sure that there is no surprise with variable rates and payments .Important is to ask if they can hold on to the property and have the reserves or savings to keep the house in case of a job loss or illness ?
If more realtors address these questions they did their job. I take pride in the industry that I work in. A home is purchased as a place to live. Some people create their dreams here some may create their nightmares.
Ou jobs is to make sure it is not the latter.
Sunan, Thank you for your question please consider you decision carefully. What ever you decide I wish you the best of luck.
0 votes Thank Flag Link Sun Aug 8, 2010
Your welcome. Pertaining to my comment on New Construction...in today's local paper there was an article on buying a foreclosure versus new construction. Basically, the cost to build is dropping and New Homes are starting to compete with the distressed inventory.

Thanks,

Megan Eister
Broker, Florida WestShore Realty
0 votes Thank Flag Link Sun Aug 8, 2010
Megan,

Thank you for the clarification. Sunan needs to make a very personal decision.
I gave the question a lot of respect and the best advice. The choice is his.
0 votes Thank Flag Link Sun Aug 8, 2010
Hi again, Sunan. MY projections for Cape Coral real estate is downward, NOT upward. And I don't care how many economists or talking heads for NAR predict increases in prices. It's not happening. Of course someone working for NAR is going to predict a rosy picture for real estate, it's what he's paid to do. I'd like to see how long he'd last if he starts telling the truth. About one week. In Florida, he's dead wrong. I'm here, on the ground, in my area, fielding calls, doing business, and I see downward pressure on prices daily.

Check back in 6 months to see which agent posting here was right. In the meantime, if you decide to sell your home, you should contact Megan below. She seems to be extremely active in Cape Coral and can help you. That's what Trulia is all about, making connections and networking.

GOOD LUCK!

Scott Miller, Realty Associates, Boca Raton, FL
0 votes Thank Flag Link Sun Aug 8, 2010
Gabriel,

I agree with you that it should be the last option. I am not a proponent of strategic default. I am not trying to make money off other's misery, nor am I masochist. I did not mean to propose that reaching the decision to short sale your home or investment property is easy. As a matter of fact, I think it is heartbreaking and extremely difficult. However, I do believe that when you finally make the decision to try and do something about your situation, it can be liberating. I believe a short sale is a good choice compared to foreclosure. As for my opinion on the future of the Cape Coral area market, I gave my "educated guess" based on years (since 1993) of experience. Follow the link included in this post for another opinion. This source predicts an overall increase of price of 4.4% from 2010 3rd Quarter to 2011 3rd Quarter in Cape Coral, Florida. Nationally, Dr. Lawrence Yun, chief economist of NAR is predicting 2-3% price increase for 2011. Thank you for the opportunity to clarify my previous answer.

Sincerely,


Megan Eister
Broker, Florida WestShore Realty
0 votes Thank Flag Link Sun Aug 8, 2010
Megan,
Cutting loses can be liberating?
Oh i don't think so.
Painful for most people. Unless you are a masochist

Walking away from responsibility is not an answer that i would offer to anyone. The choice is made when there are no other options. Loosing money is not as difficult as giving up hope.
As a seller you make the decision. Realtors we are not your best influence. I personally don't enjoy making money from other peoples misery. Hold on my friend better days are in the works. Your greatest ally is you perseverance and your principals. If you were anything but you would not be stressed. It takes hard working honest people like yourselves to weather the storm. You have my ultimate respect not my sympathy.
0 votes Thank Flag Link Sat Aug 7, 2010
Hello,

Personally, I am optimistic about the Cape Coral Real Estate Market. Bottom line, it should be steady. Prices in the area have been climbing. We are still undervalued compared to the rest of the State. We may see a slip, but I think by March, we will get the wind in the "sales" again. We will not see a steep rise in values over a short period of time, as in the past. I think it will be steady and reasonable increments. We do have a presence of Investors in the area. I am sure you will get an answer with the latest published projections by the "Authorities", but I am not so sure that will help you come up with a plan.

Unfortunately, there has been a price point "reset." Anyone who bought or refinanced after 2004 may have a very long time before they are no longer upside down. However, it also depends on where your home is located and how much you paid for it to form a professional opinion.

Also, from what you wrote, your home is at least 3 years old. The new homes that will be coming on to the market are going to be priced well and offer the latest trends and hurricane standards. We have a shortage of brand new homes on the market, and eventually there will be a good market for new construction. Many builders are gearing up their models. The point is, when the new construction starts, you will have more competition. I have helped some folks like you short sale investment property. Have you talked to your accountant about a short sale? I can refer you to an accountant in the area who has short sale experience for investors. Taking a loss now, instead of going in the hole another 2 years and then taking a loss, may be a better plan. A short sale is your best option, compared to letting it go into foreclosure. It is never easy to lose money, but cutting losses when it is the right thing to do can be liberating.

Sincerely,

Megan Eister
Broker, Florida WestShore Realty
http://www.floridawestshorerealty.com
0 votes Thank Flag Link Sat Aug 7, 2010
Sunan,
I think your question needs to be asked in a different way. How has my attitude changed towards selling my house during the three years.
Sometimes what you want is not what you need. When the need is there so is the motivation. are you seller today?
0 votes Thank Flag Link Fri Aug 6, 2010
Sorry to hear about your challenging situation. You are not alone as nearly everyone who purchased a home in Cape Coral in the 2004-2007 time frame now owns an asset worth less than what they paid for it.

The shear number of foreclosures still in the backlog, coupled with high unemployment rates are holding back the market in Cape Coral. While we are seeing some decreases in the foreclosure volumes, it does not appear to me that either of these economic drivers will be significantly improved in the near term.

Good luck!
Web Reference: http://www.gulfreturns.com/
0 votes Thank Flag Link Fri Aug 6, 2010
Hi Sunan. I spent a lot of time in Cape Coral before and during the real estate boom. There was a LOT of speculation on lots and new home construction. Now everybody is dealing with the fallout.

Personally, and this is MY opinion....prices will continue to slide because of tremendous downward pressure both from bank foreclosures and unemployment, especially in overbuilt areas of Florida.

I know what it's like to be a landlord over 7000 miles away and it is tremendous pressure, you're right. Maybe you can find someone local to keep tabs on the home for less than a true management fee, just to take the stress out of your life.

I know that you wrote above that you cannot afford to take a loss on this property, but there may be no other way to dispose of it unless you're ready to hold 3-6 years. Since I don't know the exact numbers of how much you're in the red, I'm making the most educated guess. It will stop the month loss and this is the most important thing to do now.

GOOD LUCK!

Scott Miller, Realty Associates, Boca Raton, FL
0 votes Thank Flag Link Fri Aug 6, 2010
I can appreciate your frustration with the market prices. We do not however have a crystal ball to give you an exact time. We can however tell you that prices have increased slightly. There is a prediction of another wave of foreclosures coming on the market and they are to be higher priced homes. For you, you have to weigh the toll of stress and frustration of not sellig now to selling now and accepting what the market will allow and moving forward to your goal of a new home. As much as I would like to help our builders out you might try shopping for an existing home for sale.

We would love to get the ball rolling for you to help you move towards your goal.
0 votes Thank Flag Link Fri Aug 6, 2010
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