Property Q&A in Cape Coral>Question Details

Eleanor Will…, Home Buyer in Mariner, Cape Coral,...

why are there so many houses for sale in the Cape?

Asked by Eleanor Williams, Mariner, Cape Coral, FL Tue Feb 23, 2010

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Cape Coral has long been an affordable water oriented community. ...... And was really a sleepy little well-kept secret. As the real estate market heated up all over the country and particularly in southwest florida, Cape Cape also saw tremendous growth and development. The reality is the buyers coming into Cape Coral today are getting fabulous values which I believe will not be seen again!
0 votes Thank Flag Link Sat Mar 6, 2010
There are so many homes on the market in Cape Coral due to the rampant over-building and speculation that occurred during the bubble years in the 2004-2007 time frame. Cape Coral was heavily dependent on new home construction to fuel its economy. When the real estate bubble burst, Cape Coral experienced significant job losses and many of those without work, simply picked up and moved away.

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.
0 votes Thank Flag Link Tue Feb 23, 2010
Hi Eleanor

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.
0 votes Thank Flag Link Tue Feb 23, 2010
hmm, why are there so many trees in the forest?
0 votes Thank Flag Link Tue Feb 23, 2010
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