Why are homes in Cape Coral, Fl so cheap?

Asked by Russ Nolan, 07866 Sun Aug 9, 2009

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Mark Washburn, Agent, Cape Coral, FL
Sun Aug 9, 2009
Real estate is cheap in Cape Coral due to a number of factors. The biggest challenge right now is the economy. Throughout its history, Cape Coral has primarily depended on growth and construction to fuel the economy. When the housing bubble burst, many of the better jobs just vanished. Southwest Florida and Cape Coral have not done much to diversify the economy so to eliminate this single-threaded dependence on construction and real estate.

The other major problem is an over-abundance of inventory. Cape Coral throughout its history has been one of the most speculative markets in the country. In the early days, many northerners bought 1/4 acre parcels as an investment and more recently many investors built spec homes during the boom years. Right now, there are not enough full-time residents to absorb this inventory of speculative homes.

New investors are currently entering the market prices below replacement cost. Many are buying foreclosures in Cape Coral. Here is a resource that is updated daily to view Cape Coral foreclosure listings: http://www.greaterftmyers.com/cape-coral-foreclosures.php
2 votes
Miket2010, Both Buyer And Seller, Florida
Fri Apr 20, 2012
Oh, thanks for the reminder. The so called 400 miles of canals for boaters you hear repeated spewed out as part of a paradise are actually storm drainage ditches. Good for mosquito populations, gators and snakes. Only about 10% of those are actual boating canals with salt water. But you will pay a few hundred thousand more for a house on gulf access water than you would a dry lot.
2 votes
CAPE CORAL — The biology professor from the University of Tampa bent down to the floor and pulled out of a black trash bag a fork-tongued, 5-foot-long, flesh-eating African lizard.

Flag Fri Feb 22, 2013
Miket2010, Both Buyer And Seller, Florida
Tue Apr 17, 2012
Add in $25K for city utilities, $5K for appliances (which normally comes with a house except for here), $5K other items normally included but are not (garbage disposal, garage door opener, ceiling fans, All houses need to be re-plumbed with cpvc instead of the better copper plumbing but for some reason yet to be determined will start to leak from pinholes, $5K - $8K. Chinese drywall $100K or whatever was paid for the house because as much as a remediator and certainly a local realtor will not tell you, can be taken care of for about $50K BUT CAN NEVER be taken care of even if you replaced all the drywall, plumbing, electric and frame down to the CBS walls will always be a problem.......google it.....you'll see. And despite the fact the it looks like it's near the ocean, oh, I mean the gulf. It's really a 20 mile drive to get to a beach. And no amenities except for a country bar. Add it all up and you'll pay more than you would in SFL. which has all the amenities as NYC. Oh, and I forgot the extremely hot summers. SFL has a breeze from the ocean. SWFL does not. Also the humidity is much higher. Look up close at homes in google earth and you will see a green fungus growing on the houses. SO THEY ARE NOT CHEAP!! And I see this question goes back to 2009 when they were only 30% of what they are now. Now they think it's 2005 all over again. GOOD LUCK!! I was a perspective buyer......was.........till I did much research.....thanks to the internet you don't have to rely on people with financial incentives.
1 vote
David Botelho, , Naples, FL
Thu Feb 10, 2011
High inventory, many short sale and bank owned, bad economy. http://www.fortmyersnaplescapecoral.com/GulfAccess
1 vote
Northerner, , New Jersey
Sun Sep 6, 2009
Most of the foreclosures are due to the fact that they have chinese drywall in these newly built homes and they are literally worth nothing because you can't remedy it unless you knock it down and build again. There are companies out there saying they can remedy it but they never do the job completely because they do not know how to remedy it without knocking down and building again. Southwest Florida new homes built after 2002 beware of chinese drywall which will not only destroy your a/c and heating but will also ruin your appliances and most of all your families health.
1 vote
George Gutie…, Agent, naples, FL
Wed Aug 26, 2009
Lets not foget the cost of that water and sewer line project.If you own a home or even an undeveloped lot on the Cape expect to pay over 10k dollars up front or 20k over an installemt plan.This exceeds the value of some lots on the Cape and makes it a zero sum game.This is the WORST time for the City Council to implement such a costly impact fee.Maybe if a recovery ever starts it can be discussed but this is a critical time and consequently would be a pivitol point in many people packing up and boogieng.They need to figure out the critical divisor that would make this happen and not exceed it under any cost.The water and sewer is not the only problem here ,15% unemployment, high crime rates on the Cape and uncertainty are to blame.All of the negative news(murder,robbery,rape and homicide) on WINK news is focused on the Cape, Ft Myers and Lehigh,Go to Naples if you can afford it.
1 vote
More sage advice. Thank you George. Things have not changed but have in fact worsened.
Flag Sun Feb 19, 2017
Mark Washburn, Agent, Cape Coral, FL
Wed Aug 12, 2009
Bill - thanks for the the kind words, much appreciated. This thread is a bit strange to read as that zen lady deleted all those posts.

The University of Florida just released a report about the Florida real estate market. The report echos my sentiments below that market recovery is pegged to job growth. The study names Southwest Florida as the most depressed real estate market in the state. Here is more information about the UFL study: http://news.ufl.edu/2009/08/11/real-estate/
Web Reference:  http://www.gulfreturns.com/
1 vote
Frank Glaab…, Agent, Cape Coral, FL
Thu Apr 26, 2012
Wow. It's funny to hear all of the negative things that people find about Cape Coral on the internet. I've never heard of most of our canals being mosquito infested drainage ditches. Our canals are drudged and well kept from growing vegetation and are constantly moving, leaving it hard for mosquito larvae to hatch. Larvae require stagnant water that is 55 degrees or higher. Our canal systems all have more than enough current to fight off this problem. Adding to this, even our fresh water canal systems are popular and many of them connect to miles upon miles of fresh water lakes, basins, etc. Cape Coral property is actually now moving up every month, making our city one of the best in the world to invest in right now.

To read more relevant Real Estate news and to search the MLS, please visit my website at http://www.CCParadise.com.

Frank Glaab
Gulf Gateway Realty, Inc.
0 votes
AJ Ackerman, Agent, Cape Coral, FL
Wed Apr 18, 2012
There are indicators that the housing market in Cape Coral is rebounding. AJ Ackerman and Associates of Century 21 Sunbelt Realty cite trends that indicate growth and revitalization for the city.

Cape Coral, Florida, March 2, 2012 Just a few years ago, Cape Coral suffered one of the highest foreclosure rates in the country. However, the city is now proving to be on a fast moving upswing. Cape Coral Realtor®, AJ Ackerman & Associates of Century 21 Sunbelt Realty, announced that recent trends in the Cape Coral housing market are indicating growth and revitalization for the city.

Ackerman, as part of the Randy Peska and Partners team, has worked tirelessly in his efforts to push through the down economy for his clients, and keep the real estate in Cape Coral moving. Ackerman’s reputation precedes him, so when he announced that the Cape Coral housing market is back, clients and investors took notice. His market assessments suggest that the health of the community is rebounding in residential home and investment properties sales.

This upswing has also been noted by sources such as the Houston Chronicle. The publication recently reported that, “In November 2011 the median price of a home in Lee County, which includes Cape Coral, was $106,300, up 20 percent from $88,500 the previous year. More important, the price is far less than the national median of $170,000. Indeed, with the notable exception of cities like Detroit, you could sell your home almost anywhere in the country, move to Cape Coral and pocket some money.”

Unlike Detroit, however, Cape Coral offers the lure of a beautiful tropical paradise. Located in Southwest Florida, the Cape boasts an abundance of year-round sunshine, golf, close proximity to the Gulf of Mexico beaches, fishing, and a plethora of waterfront properties. In fact, Cape Coral has over 400 miles of waterways and canals, making it a haven for boating enthusiasts.

Although Cape Coral offers the luxury of coastal South Florida living, the homes are still selling at very affordable prices, by the standards of most real estate throughout the country. According to a 2011 CNN report the Cape Coral community is #2 on the list of best places to retire in the country. This is not surprising, considering the city offers both the lure of the Florida lifestyle, combined with affordable homes and low taxes. It has become a top destination for retirees, as well as those looking for a nice place to raise a family.

However, Cape Coral is not only being noticed by northerners in the U.S. looking to migrate South. It is also popping up on the radar of people from around the world. Investment dollars from European buyers, land developers, retirees and first time home buyers are coming into “The Cape”.

“With real estate prices coming up, trade businesses hiring on, and a drastic increase in applications for Cape Coral New Construction permits, it is clear that Cape Coral is coming out of the recession,” said AJ Ackerman. “Our team has consistently worked within this community for years, and we are absolutely confident that Cape Coral is going to have a great year!”

Florida Realtors agree with Ackerman’s projection, which is supported in an article posted on Floridarealtors.org. In this article, Florida Realtors® Chief Economist Dr. John Tuccillo at the state association’s 2012 Real Estate and Economic Forecast Conference in Orlando said, “Sales are trending up, listing inventories are falling, the supply of lender-related properties has stabilized, and we are seeing multiple offers on homes in some local markets…a buyer who plans to own (a Florida) home for five to seven years can get some great bargains today.”

This trending was also reported on the popular online residential real estate site, Trulia.com. The site reported a quarterly increase of 5% or $5,000, on the average median home selling for $105,000 in Cape Coral Florida, for the period of November 2011 to January 2012. Compared to the prior year, this represents a 17.7% increase.

Ackerman added, “All indicators are pointing to a rebounding market. This, combined with housing and development costs as affordable as they are, is causing investors to take a serious look at Cape Coral real estate. Our team is positioned to help buyers take advantage of this rebounding market, and find the property that is right for them.”

For more information about Cape Coral real estate, visit Ackermanswfl.com
Web Reference:  http://www.ackermanswfl.com
0 votes
Laurie Fabick, , Fort Myers, FL
Thu Mar 25, 2010
Hi Russ...

Cape Coral is one of Florida's largest geographical areas and is basically a bedroom community for Fort Myers. It's gorgeous with many, many brand new homes for people to enjoy the Florida lifestyle. Best yet, it has more canals than Venice, Italy and the canals make up appx. 45% of the entire area! Homes skyrocketed a few years ago getting a little out of hand, so now we're experiencing a leveling of home prices in today's market. Buy now and contact me if you'd like at 239-565-5780. Love to help you. Laurie
0 votes
Scott M, Home Buyer, Cape Coral, FL
Thu Mar 18, 2010
Actually Chinese Drywall is more hype than anything . My own house in the cape had defective drywall that wa removed and repairs done to any damaged mechanicals under building permit . Once the offending product is gone its all over . That being said you carpet, insulation and any other material that could absorb the sulphur smell should go.
Are these people for real that think they should be bulldozed ? This isnt radiation folks with a half life of a million years. Its just bacteria munching away at available food in the drywall with sulphur gas as the by product ...apparently as a result of recycled paper and other materials being used in production.
As well ...American and Canadian drywall is also being removed in the cape as defective. The chinese were not the only ones taking short cuts.
I am also buying up as many homes as i can afford as the final word on this will be a lot less "dangerous" than this problem has been portrayed. Many people are living in these houses with knowledge of the problem and no ill effects...... including my realtor
But hey if you want to run screaming down the street like your hairs on fire ...go ahead the rest of us are getting on with the business of fixing a buiding defect
0 votes
This may be old but the problem remains. Basic research confirms that the homes built with the inferior products pose serious heath issues. Do not listen to RE "experts" who are only concerned with churning the market to generate commissions. In all candor the cheap suits are a real giveaway. The latest problems include criminal activity which has been difficult to suppress ergo the wrought iron and extensive alarm systems including surveillance cameras.
Flag Sun Feb 19, 2017
Mark Washburn, Agent, Cape Coral, FL
Sun Sep 6, 2009
Northerner, Your statement that most of the foreclosures in Cape Coral are due to Chinese drywall is not an accurate one. Yes, there is a serious Chinese drywall problem in Cape Coral with hundreds of cases identified, but this is just a small percentage vs. the total number of foreclosures.

The Cape Coral foreclosure problem was created by out of control speculative investing by unqualified investors in low-end starter homes. Couple this investment frenzy with a a single-threaded construction economy and overzealous financing and you have the factors that caused the foreclosure crisis. Yes, Chinese drywall is a factor, but not the key driver.
Web Reference:  http://www.gulfreturns.com/
0 votes
See my comment above regarding serious health issues and market churning by "experts" unable to generate sufficient commissions to support their lifestyles. Also check their backgrounds with online services to avoid related criminal activity.
Flag Sun Feb 19, 2017
Bill Eckler, Agent, Venice, FL
Mon Aug 10, 2009

Thank you for staying with the topic and providing Russ with some information of substance. Great post!!

0 votes
Nancy Doyle, Agent, Cape Coral, FL
Sun Aug 9, 2009
Hi Russ,
As stated before by Tim the speculative building played a large roll in our current inventory. Also, the mortgage fraud that put people in homes that they could not afford. Since our homes are at prices so low that you could not build them at these prices, many new homes are not being built. The current economy that has been effecting all of the us is also playing a huge role in the amount of foreclosures.

With that being said this is one of the best times to purchase real estate here. Many are taking advantage of our low prices and in lee county we sold over 1500 homes in July alone.

If you would like to search the available homes in the mls go to http://www.nancyd.listingbook.com
I would be happy to help you if you have any questions or think you may want to purchase a home.

Have a great day,

Nancy Doyle
Sellstate Professional
Web Reference:  http://www.nancydrealtor.net
0 votes
Tim Bishop, , Cape Coral, FL
Sun Aug 9, 2009
Hi Russ,

There are MANY contributing factors to the low price of real estate available in Cape Coral. During our building boom earlier this decade, many homes were built speculatively in Cape Coral. When the boom ended, many new, vacant homes were available from builders who had no buyers. When those builders went bankrupt, those vacant homes, ultimately, became foreclosures. If you couple that with the nationwide issues regarding folks losing their homes to foreclosure, you begin to see why there is so much inventory in Cape Coral.

Because of the affordability factor, now is a better time than ever to purchase a home in Cape Coral. If you'd like more information, please don't hesitate to give me a call or email me directly. My contact information is below!

Take Care,

Tim Bishop
Century 21 Sunbelt Realty
0 votes
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