Cape Coral Real Estate Expected to Grow Over Next Two Years

A Local Market Monitor report released earlier in 2015 predicted that the Cape Coral real estate market is expected to grow by 25 percent over the next three years, sixth in Florida as far as growth. Since Cape Coral was hit hard by the foreclosure crisis, this is good news for those who plan to sell their homes in the next few years.

Rent-to-Buy Ratio

Although the growth predicted is good for the area, experts say that one of the reasons the Cape Coral market is not growing faster is that the rent-to-buy ratio is around six percent. When a rent-to-buy ratio is less than five percent, it makes more sense to buy than to rent. This lower rent-to-buy ratio indicates that, at the current market level, it may make more sense to rent in Cape Coral than to buy. Rents in Cape Coral were around $984 – a 5.8% rent-to-price ratio – during the study, the seventh lowest in Florida.

Retirement Properties

Some of the growth expected in Cape Coral is the benefit of purchasing property in Florida while people are working in anticipation of retirement within the next 10 to 20 years. Many home buyers in their 40s are purchasing Cape Coral homes, using them as vacation homes and often renting them seasonally to cover the mortgage, until it is time for them to retire in their 60s. Most of those who purchase homes in the area as second homes say that purchasing now made more sense than waiting until they were already in retirement.

Low Home Prices

In addition to the benefits of buying retirement property in Cape Coral, the housing values in the area are also much lower than other locations in Florida. The average home in Cape Coral costs $96 per square foot. Cape Coral is also a prime location for future development, something that could have a major positive impact on housing values. There are reports that a community gathering place may be developed in the Bimini Basin, possibly as a mixed-use commercial and open space area.

Benefits of Living in Cape Coral

The low home prices and appeal to retirees are not the only reasons many people are purchasing homes in Cape Coral. The city was founded as a satellite city to Fort Myers in 1957 as a waterfront wonderland. The community was preplanned and constructed so that there were many waterfront properties available. There is a 400 mile long canal system providing access to the Gulf of Mexico. Nature lovers find Cape Coral extremely attractive as there are many parks and natural reserves as well as the Four Mile Cove Ecological Preserve with many nature trails.

If these are not enough reasons to purchase real estate in Cape Coral, Florida also offers first time buyers financial incentives that include tax credit abatement, discounted down payments and low-interest loans. With these types of incentive, the benefits of living in the area and low housing prices, it is easy to see why the housing market will continue to improve in Cape Coral.

Cape Coral Mortgage, Inc.
3512 Del Prado Blvd. S.
Cape Coral, Fl. 33931
(239) 540 5555

Cape Coral Housing Market Continues to Recover

It has been nearly a decade since the Cape Coral housing market reached record-high levels of home sales, ownership, property values, and mortgage approvals. Everyone knows what happened next: After years of a real estate bonanza, the American housing market suffered a spectacular crash that triggered the recession and global financial crisis.

Cape Coral became infamous as one of the hardest-hit housing market in the United States. After years of mortgage delinquencies, foreclosures, abandoned neighborhoods, and a gloomy local economy, Cape Coral is has been seeing the light at the end of the tunnel.

From 2008 to 2013, real estate sales in Cape Coral was mostly restricted to opportunistic cash buyers who took advantage of distressed properties listed at rock-bottom prices. The Cape Coral-Fort Myers market was often at the top of lists compiled by real estate analytics firms such as CoreLogic, which keep track of cash closings. These days, Cape Coral ranks below Sarasota and Palm Beach in terms of real estate cash purchases, and there is a resurgence of first-time home buyers applying for mortgages.

How Cape Coral is Recovering

The housing market situation has improved tremendously in Cape Coral, but it can still be considered a buyer’s market. House hunters are spoiled, and they are looking for new construction deals. Thankfully, analysts believe that mortgage applicants these days are more likely to qualify for financing than a few years ago; one of the reasons for this turnaround is the employment rate, which is a lot better than it used to be after 2008.

Cape Coral offers a great deal of opportunity to home buyers in terms of waterfront properties, affordable homes and future construction. Aside from first-time home buyers, local real estate agents are getting inquiries related to properties that have access to the Intracoastal Waterway and the Gulf of Mexico; these inquiries are typically from boaters who have already shopped for home in Sarasota and Manatee counties.

Figures released by the Realtor Association of Greater Fort Myers and the Beach indicate that there were nearly 2,600 home sales in the first six months of 2015, which represents a nine percent increase over the previous year. The median price of $173K is rapidly rising.

There is also a great deal of interest by property investors who have been following the rental market in the last few years. It is not unusual for a three-bedroom home in Cape Coral to rent for $1,500 per month, which is a 50 percent increase over the last two years. To this effect, the concept of a monthly mortgage payment being cheaper than renting is once again valid.

With regard to the mortgage market, analysts are forecasting a flurry of applications in the next few months. This projected spike can be explained by the recent comments made by Federal Reserve officials, who have hinted at the possibility of raising interest rates before the end of the year.

Cape Coral Mortgage, Inc.
3512 Del Prado Blvd. S.
Cape Coral, Fl. 33931
(239) 540 5555