Foreclosures, short sales, and entry level homes are dominating the Southwest Florida real estate market with most of the sales coming from Cape Coral. When we look at the Percent of April’s closings under $200,000 chart, we can clearly see that closings under $200,000 dominate the Cape Coral, Lehigh Acres, and Lee County real estate markets in general. If you are priced above $200,000 in Lehigh Acres, you’ve got a slim chance of selling as that is not where the buyers are at in Lehigh. Over 95% of Lehigh’s closings was at $200,000 or less.
We need not look any further than the Months Supply of Inventory Priced Less Than $200,000 chart. As you can see, Lehigh Acres has over a 2 year supply of homes on the market right now, while Cape Coral and Lee County overall are less than 1 year.
Another interesting chart is the Percent of Homes Listed as Short Sales graph.
Over 52% of homes listed in Lehigh Acres are short sales compared to 38.70 Percent for Lee County overall. If we examine the shear number of short sales listed in Lee County priced less than $200,000 we can gain a little perspective. Cape Coral has approximately half of the short sales listed in the entire county, and over half of the sales. This tells us that when affordability meets opportunity, buyers jump off the fence and purchase.
Lastly, let’s look at the Percent of Homes on the Market is SW Florida Priced Less Than $200,000. So it looks like Cape Coral is where the action is right now, and Cape Coral is probably closer to recovery than Lehigh Acres is, but you can see how fast a market can turn once transactions start occurring in a market segment.
We are also seeing the market being driven by the low end, but also a bleed-up effect which translates to more sales and more offers now in the $300,000-$500,000 range as well. We expect May to be another good month for sales numbers once they’re posted at the end of the month.