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2017 condo market strong, but gulf access sales mixed

February 9, 2018
by BOB and GERI QUINN - Homing In , Cape Coral Daily Breeze

The overall Cape Coral condominium market had a strong finish to the year in 2017, with 61 condo units sold in December, up 27 percent from the 48 units sold in December 2016, while the fourth quarter was up 7.48 percent with 158 units sold versus 147 sold in the fourth quarter of 2016. For the year, there were 674 condo units sold, for an average of 56.17 sold per month in 2017, up 8.36 percent versus the 622 units sold in 2016.

The median sales price in the overall Cape condo market averaged $156,750 per month in 2017, which was 14.49 percent higher than the 12 month average of $136,917 per month in 2016. The 2017 median sales price average of $156,750 per month was also the highest yearly average since 2007, when the median sales price came in at $167,750 per month.

There was an improvement in the market conditions to a lower monthly supply of unsold condos in the overall Cape Coral market, both in the month of December and for the year in 2017. This past December was the second month of 2017 to register a 5 month supply of unsold condos, tying it with the month of March for the low of the year, and it was 37.5 percent lower than in December of 2016, which had 8 months of unsold supply. For the year, the average supply of unsold condos listed for sale in the overall Cape condo market was 6.67 months in 2017, or 6.97 percent below the average of 7.17 months of unsold supply for the year, in 2016.

Here are the results by specific property segments, which more accurately reflects the differences between the separate market's within our condo market.

Gulf access canal condos

In December, there were 22 condo units sold in the Cape Coral gulf access canal condo segment, which was flat with the 22 units sold in December 2016. This finished off a weaker, post-Hurricane Irma fourth quarter of 2017, with a total of 62 units sold, versus 70 units sold in the fourth quarter of 2016, and came in well below the 82 gulf access condos sold back in the fourth quarter of 2015. For the year, there were 300 gulf access condo units sold, for an average of 25 per month in 2017, which was up 4.53 percent versus the 287 units sold in 2016, but still some 8 percent below the 326 total units sold in this segment back in 2015.

Median sales prices for Cape Coral gulf access canal condos continued higher in 2017, averaging $195,954 per month for the year, climbing 19 percent from a monthly average of ?$164,667 in 2016. All this, while the gulf access segment had to unwind a sudden spike in the supply of unsold condos in January and February of 2017, when the supply averaged 12.5 months. This sharp rise in supply put this segment into a buyer's market, before the supply eventually came back down to end 2017 in a neutral market, with an average unsold supply of 8.67 months for the year. This recovery matched the average monthly unsold supply for gulf access condos of 8.67 months in 2016.

Sailboat access canal condos

Despite an extremely slow start to last year, the number of Cape Coral sailboat access canal condos sold in 2017 was on track for a very big year until Hurricane Irma came through the area in September. Through August of last year, the number of condos sold in this segment was running 30.85 percent above the number sold in the first 8 months of 2016, before sales declined after Irma, dropping back to 2016 levels over the last four months of 2017. For the year, there were a total of 168 sailboat access canal condos sold in the Cape, for an average of 14 per month, which was still 20.86 percent higher than the 139 condos sold in 2016, and slightly ahead of the 166 sailboat access condos sold for the year in 2015.

After declining slightly over the first 4 months of the year, median sales prices for Cape Coral sailboat access canal condos regained their footing and continued steadily higher in 2017, closing the year with a monthly average of $217,400. This topped the average monthly median sales price of $192,304 in 2016, by 13.1 percent. The declines in median sales prices early in the year were likely the result of a steep spike-up in the January 2017 supply of unsold condos to 30 months, which was gradually unwound throughout the rest of the year, reaching an average unsold supply 10.92 months for 2017, which was only 4 percent above the 10.5 months of unsold supply during 2016.

Dry lot condos

The Cape Coral dry lot (non-canal) condo market wrapped up a solid year with 32 condo units sold in December, up 39.13 percent from the 23 units sold in December 2016. Sales reached their peak month in March with 40 units sold and the only bad month was in October following Hurricane Irma, when only 13 units were sold. For the year, there were 311 dry lot condos sold in 2017, averaging just under 26 sold per month, and beating the 279 units sold in 2016 by 11.47 percent.

Following a 7.28 percent decline in median sales prices from $110,000 back in 2015, to only $101,988 for the year in 2016, median sales prices for Cape Coral dry lot condos got back on track last year, by climbing 21.9 percent to $124,319 in 2017. Despite a rise in the supply ?of unsold condos to 10 months in October, due to the market impact from Hurricane Irma, the dry lot condo segment remained in a seller's market with an average of 5.33 months of unsold supply in 2017. This was a year-over-year improvement, with 10 percent less supply sitting on the market unsold, compared to the average of 5.92 months of supply in 2016.

(The December, fourth quarter, and year-end 2017 sales data for this article was obtained from the Florida Realtors Multiple Listing Service Matrix for Lee County, as of February 2, 2018, and it was compiled by Bob and Geri Quinn. It includes information specifically for Cape Coral condominiums, villas, and townhouses, and it does not include single family homes, short sales, or foreclosures. 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 the RE/MAX Realty Team office in Cape Coral. They have lived in Cape Coral for over 38 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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