Entry level homes are driving the demand for homes in Lehigh Acres and Cape Coral Florida real estate. Several lending institutions asked us to do some analysis on the foreclosure market here in SW Florida, and by far Cape Coral leads the way in the county for transactions. In fact, it can be said that Cape Coral is the hottest market in Lee County. Lehigh Acres is much more soft. We’ve uncovered some interesting facts exploring this data.
Here is a graph of all SW Florida real estate homes on the market. This data was pulled from the Greater Fort Myers and the Beaches MLS. As you can tell, Cape Coral has the most listings on the market, and Lehigh Acres is home to some of the most affordable homes in Lee County. As you can see from the April 2008 closings graph, 371 of Lee County’s 677 transactions were in Cape Coral. This means that over half of SW Florida’s closings occurred in Cape Coral Florida. Another startling graph is the SW Florida real estate months supply of inventory graph for homes under $200,000. As you can tell, Lee County is down to 9.69 months of supply and Cape Coral is even better at only 7.74 months of supply for homes priced under $200,000.
What this is telling us is that buyers are definitely off the fence and buying now, and most of these buyers are end users. It’s also telling us that they prefer to buy in Cape Coral over Lehigh Acres. In the Boom market, Lehigh did very well because Cape Coral was priced about $85,000 higher for the same house. The difference was in the land prices. Now that price differential has come down to about $15,000, and buyers are saying to themselves, for only $15,000 difference they’ll choose Cape Coral. For $85,000 difference Lehigh Acres looked affordable and attractive.
This also tells us that either prices will go up in Cape Coral, or prices must come down further in Lehigh Acres, or a combination of both until we hit equilibrium.
Feel free to check our SW Florida real estate housing statistics webpage for lots of other charts and graphs.
This article is the first in a series utilizing this new data, so check back often for more updates to the entry level home pricing market in SW Florida, or subscribe to receive e-mail updates to this Blog.