Distressed Housing Market in Southwest Florida Short Sales Inventory Decreasing

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The short sale inventory in Southwest Florida in the areas of Cape Coral, Fort Myers, Naples, Estero, Bonita Beach and surrounding cities is drying up quickly as market conditions continues to improve. Recently I was working with a home buyer that ONLY wanted short sales specifically in the 33993 zip code of Cape Coral that were below the price point of $125,000. The inventory was very low for the bedrooms/baths and square footage required in this lower price range so much so that I had to expand the search to all of Cape Coral and I only found 7 active short sales over 1900 square feet that were on the market for under $125,000. Does this mean that short sales are over for investors and second home buyers looking for exceptional deals that can be purchased for deep discounts to the retail market? Not necessarily so, but the inventory of short sales is being absorbed by cash buyers that can move quickly and understand that even at a price of $125,000 for a 3 or 4 bedroom home built less than 6 years ago that was previously sold for twice that price back in 2005-2007 and can easily rent for a positive cash flow with a 20% down payment. Our home market is still undervalued and I am getting inquiries daily from second home buyers/vacation home buyers from all over the United States and Internationally as well that understand that Southwest Florida is still a undiscovered paradise.

If you were a Canadian resident for example looking to buy a seasonal home in Fort Myers or Naples from Canada and had funding in place that you can pounce on a good deal as soon as it came on the market then you could start your search by looking at distressed short sale homes in gated communities throughout our area that offer amenities of year round landscaping, 24 hour security, and other community amenities that offer turn key peace of mind when you are back home and not staying at the house. I have been working with a client from Toronto that has been looking at short sales in gated communities throughout Lee County and when updating my search to up to $300,000 from $250,000 as prices have gone up since initially starting to look for this client in the beginning of this year I found 43 homes in gated communities for sale in the cities of Fort Myers, Bonita Springs, Estero, and Cape Coral which is not a lot of inventory for such a large area wide search. Of those 43 I pinpointed 10 that are excellent buys and will probably be under contract within the next 30 days. What you need to look out for if you are looking to buy a short sale in a gated community though is to look at the bigger picture of the community and make sure that when looking at the overall value of the community that there is not a high percentage of homes that are distressed sales which could lead to values staying low or decreasing over time as more and more homeowners stop paying homeowner association dues which will lead to higher association fees or special assessments from budget shortfalls. There are some gated communities that 30-50% of transactions that initially occur as short sales or bank REO sales and then are either resold to home buyers or are rented out. I advise my buyers that are looking for longer term price appreciation to look at gated communities that do not have such a high percentage of distressed sales so that they can buy the best priced deal and not have to worry about having too many properties turning into rentals instead of homeowners.

If you are interested in getting a list of distressed short sale homes throughout Southwest Florida call 239-887-4942.
I am a certified distressed property expert.

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