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It’s taking longer to sell Cape homes and condos

August 18, 2017
By BOB and GERI QUINN - Homing In , Cape Coral Daily Breeze

In this weekly column, we have generally focused our analysis of the Cape Coral real estate market on the statistics for median sales prices, along with the number of homes sold and the monthly supply of unsold homes and condominiums, because they provide a good look at the current market conditions and important market trends.

Today, we will analyze a statistic known as the median days to sell. The days to sell counts the number of days it takes for a home that is listed for sale to go under contract with a buyer. The "median" gives us the point at which half of the homes go under contract below that number of days, and half go under contract above that number of days. This statistic can help both buyers and sellers get a feel for the market in that when this number is lower, the action is likely to be much more competitive between buyers, and when this number is higher, it can be one of several possible signs that "the market" thinks a home is overpriced.

Once a home is under contract, the status will be changed from "active" to "pending" or "pending with contingencies," and the days to sell number freezes at that point. However, the cumulative days on the market count continues higher, until the sale of the home actually goes through, or closes. In our market, it usually takes approximately 30 to 45 days for the sale of a home to close once it goes under contract.

Below we will be comparing the average, year-to-date, median days to sell through July 31, for both single-family homes and condominiums, breaking things down by property types. This approach will more accurately reflect the differences between the various segments of the Cape Coral real estate market, enabling us to see the trends which are forming in the "markets within our market." We are also able to compare different neighborhoods and price points, in an effort to better determine the reasonable price at which a home is likely to be sold. So, let's begin with an overview of the overall Cape Coral home and condo markets.

Year to date, in the overall Cape Coral single-family home market, the median days to sell a home has averaged 40.14 days, compared to only 32.57 days over the same time frame last year. This means, on average, it is taking 23.24 percent longer for a seller to go under contract with a buyer to sell their single-family home this year, compared to in 2016.

In the overall Cape Coral condominium market, the median days to sell a condo has averaged 53.43 days, compared to only 42.86 days over the same time frame last year. So, on average, it is taking 24.66 percent longer for a seller to go under contract with a buyer to sell their condo this year, compared to in 2016.

Dry lot homes and condos

In the Cape Coral single-family dry lot (non-canal) home market, the median days to sell a home has averaged 32.57 days in 2017, compared to only 25.86 days over the same 7-month time frame last year. So it is taking 25.9 percent longer for dry lot homes to go under contract with a buyer this year, compared to in 2016. Also, since a number of dry lot homes tend to sell at lower prices than a typical home in the overall market, dry lot homes are going under contract with a buyer 18.86 percent faster than the average median days to sell of 40.14 days for homes in the overall market, as noted above.

Price is one factor in how quickly a home will go under contract with a buyer, as lower priced homes tend to sell much faster in our market. As an example, for dry lot single-family homes priced at $200,000 and below, the median days to sell has averaged 25.71 days, or about 7 days faster than for all dry lot homes. However, it is taking 38.45 percent longer for this price range of dry lot homes to go under contract this year, compared to the first 7 months of 2016, when the median days to sell averaged only 18.57 days.

In the Cape Coral dry lot condo market, the median days to sell has averaged 41.14 days, or only 1.4 percent longer than the 40.57 days it took to go under contract with a buyer over the first 7 months of 2016.

Gulf access homes and condos

In the Cape Coral single-family gulf access canal home segment, the median days to sell a home in 2017 has averaged 70.86 days, or 16.72 percent longer than the average of 60.71 days it took for a seller to go under contract with a buyer over the first 7 months of 2016.

For gulf access canal condos, the median days to sell has averaged 72.43 days, or 33 percent longer than the average of 54.43 days it took for a seller to go under contract with a buyer over the first 7 months of 2016.

Sailboat access homes and condos

In the Cape Coral single-family sailboat access canal home segment, the median days to sell a home has averaged 78.14 days, or 23.46 percent longer than the average of 63.29 days it took for a seller to go under contract with a buyer over the first 7 months of 2016.

For sailboat access condos, the median days to sell has averaged 89.71 days this year, or 89.7 percent longer than the average of 47.29 days it took for a seller to go under contract with a buyer over the first 7 months of 2016.

Freshwater canal homes

In the Cape Coral single-family freshwater canal home segment, the median days to sell a home has averaged 45 days, or 6.25 percent fewer days than the average of 48 days it took for a seller to go under contract with a buyer over the first 7 months of 2016. There are not enough sales on a consistent basis in Cape Coral freshwater canal condos to track and get any meaningful results.

To summarize, it is taking longer to sell a Cape Coral home or condo so far this year versus last year, and it takes longer to sell a condominium than it does to sell a single-family home. Also, the market is currently much slower for higher priced homes, while it has been slowing for lower priced homes. At the same time, we continue to see a lot of interest from buyers, who are remaining rational about what they are willing to pay for a home.

(The sales data for this article was obtained from the Florida Realtors Multiple Listing Service Matrix for Lee County, Fla., as of Aug. 11, 2017, and compiled by Bob and Geri Quinn. It includes information Cape Coral single-family homes, as well as for low-rise, mid-rise and high-rise condominiums, along with attached and detached villas, and townhouses. It does not include foreclosures or short sales. The data and statistics are believed to be reliable, however, they could be updated and revised periodically, and are subject to change without notice. The Quinns are a husband and wife real estate team with Century 21 Birchwood Realty Inc. in Cape Coral. They have lived in Cape Coral for over 37 years. Geri has been a full-time Realtor since 2005, and Bob, who also holds a Certified Financial Planner designation, joined with Geri as a full-time Realtor in 2014. Their real estate practice is mainly focused on Cape Coral residential property and vacant lots.)

 
 
 

 

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