Cape Coral Real estate sale predictions for 2012

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It is the beginning of 2012 and reflecting back on the past year here are my observations going forward through 2012 on the Cape Coral real estate market. Right now there is still plenty of homes for sale in the sub $150,000 price range, but what has happened is that all the most of the lower priced inventory has been absorbed by investors and overseas buyers with cash in hand and wisely bought up homes that had been grossly underpriced from the massive downward overcorrection that occurred.

In the December issue of Money Magazine, Fort Myers has seen the highest increase in home values in the country in 2011. Fort Myers Weekly which is a local paper reported that the median prices for homes sold in 2011 rose 28.2%. Before you think that this sounds like bubble mentality again you have to remember our market in Cape Coral and Fort Myers was one of the worst hit markets in the United States. Our home prices from the peak were cut by close to 60% from the peak numbers and it created ripple effects in layoffs, subsequent mass foreclosures and recessionary results throughout all areas of our local economy.

So my opinion of the Cape Coral/Fort Myers real estate market is of cautious optimism. Here are the factors that are affecting home sales here:

#1 Mortgage money is phenomenally cheap, but hard to get unless you have 20% or more to put down for a down payment in most cases, and you better have excellent credit and a long history of steady employment.

#2 There is still plenty of cash out there from Canadians and European buyers that want to buy real estate and are realizing that the bottom feeding is over and that the homes that were being bought for 40 cents on the dollar are bought up. The values are still extraordinary and I think that buyers will realize that this is still one of the most pleasant places to live and retire with low property taxes and of course beautiful weather and amenities.

# 3 There are still plenty of short sales and bank owned properties in the Cape Coral market that will keep homes prices from jumping up much this year as they continue to sell for lower prices than competing well kept homes in the same neighborhoods.

So it’s my opinion that real estate in the near future will stay steady throughout the year and that home sales will continue due to the great values we have, but that the cash buyers will definitely have the greatest advantage in buying properties at the best prices when competing with buyers who have to get mortgage financing contingencies in order to close on homes.

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