This exodus of residents has created an inventory of empty housing that is currently being sold for prices below replacement cost. Many properties being sold are classified as distressed sales, either short sales or foreclosures.
The Cape Coral real estate market peaked out in about August of 2005, continued rolling along in the first half of 2006 and then crashed. We called it the Tsunami of real estate - the wave came in and the wave went out! Basically we were under valued prior to the market taking off in about 2003 and then became way over valued as investors and home buyers went crazy over Cape Coral. Many of the investors and home owners that purchased in the peak of the market are now upside down in their mortgages with home prices dropping on average about 60%. Also, construction was a huge part of our job market here so many people were out of work when construction stopped.
The long and short of it is that we have many homeowners losing their homes and investors that can't afford the payments since the rents have droppd also. They are either doing short sales or getting foreclosed on so we have many homes for sale as compared to the boom market. It's a very sad situation for many but our prices are more affordable than they have been for years.