FuturesCape 2000 in Cape Coral, March 23^rd, 2000

The Cape Coral WCR chapter did it again with great success.  The evening was a great success with way over 200 guests.  Executive Title was the major sponsor.

5 speakers drew a very positive picture about the Cape and it's future.  The utility expansion is on its way and will fully service Pine Island Road and the North Cape Industrial Park by 2001.  The following phase is SW Cape Coral going north from units 69 and 72 in the following years

The city also knows about the urgent need to improve the permitting process.  Better times will be ahead as per Bob John and Steve Daignault. 

The new city hall is scheduled to open in 2001.  The city leaders think that the city reached 100,000 permanent residents in February.  The census will hopefully confirm this number.  This critical number will bring additional business to the city.  The 1999 "Shake and Stake" on Pine Island Road is the busiest one in the world as per it's manager! Outback Steakhouse and a Hampton Inn are on the drawing board for construction in 2000 on Pine Island Rd. as well.

Greg Morris explained the acquisition and marketing plans for Cape Coral Holdings, Will Stout explained his vision for Cape Harbour and Bob Knight reported about the amazing new construction of residential homes in the Cape, reaching close to 2,000 new homes in 2000, which is even better than 1999 right now.  No slowdown is in the outlook. Michael Schneider-Christians reported about the residential and the international markets.

The Cape Coral Residential Market at the Beginning of the new Millennium

We are finally in an improving market.  Prices are rising and demand is increasing while inventory is decreasing.  This new trend started in about 1997.

The History:

There have been 2 phases of high demand and increasing prices in Cape Coral before.

In the years 1979 to 1981 and in the years 1987 to 1989.  During those times the market was hot, both for homes and vacant land.  The most benefit was generated by waterfront property.  Off water vacant land in the Cape is still abundant and you can buy lots for the same price today as 30 years ago.  Imagine this: You still can buy a 10,000 SF parcel of dry land for less than $1,500 and there are deals for fresh water lots for less than $3,000 available any day.  There is an existing access road in front and power and phone will come to you.

During both those times the market overheated and prices were inflated; they later stabilized at a lower level.  After those hot times prices came down.  Most recently, after 1990, prices for houses and lots went down every single year.  A few exceptions of course.  The average decrease in prices was about 3 to 5% annually for about 6 years.

The Present:

The declining price situation for the Cape stopped in 1997 and since then we have an improving market with 1998 and 1999 as very good years for sales.  And 2000 has started with a bang again and finally prices are really going up.  In 1997 through 1999 we mostly reduced inventory to make the market tighter.  The tighter market finally results in increasing prices.  

There are several reasons for the improving property values in the Cape.

More funds are available for every family in the US because of the good economy for a decade now.  We have good real estate markets up North, in California and other areas where people move from to Cape Coral.  They sell higher, they have more money available to purchase.  Interest rates are also still at an acceptable level.

New developments in Cape Coral play a major part for improving the image of our city. Avatar started The Hermitage, Emerald Cove and Cape Harbour. For the first time the Cape had communities to offer. Not to forget Trafalgar Woods, which was a private development.

With the sale of Cape Harbour by Cape Coral Holdings to Will Stout there is another chance to get way ahead in image building for Cape Coral. 

The Midpoint Bridge and the new road corridor of Veterans Parkway have made a statement and will possibly be the most valuable improvements to the city for years to come when it is connected to Burnt Store Road, hopefully latest by 2005.

The Future:

The future for the Cape looks very bright!

Home construction is at a peak, home resale's are soaring, vacant land sales are higher than in years.

The utility expansion in the SW area is a little delayed, beginning in about 2002, but will make the SW even more attractive.  Road access will be better with the 6 laning of Cape Coral Pkwy., to Chiquita Blvd., and has already improved by Veterans Pkwy.

I expect the first home sale for above $1,000,000 this year.  This will be a wakeup call for Fort Myers, Bonita and Naples, whose Realtors often did and do not speak well of the Cape. 

Our population should reach over 100,000 in 2000 as well.  This is one of the critical numbers for many US developers and Franchise sellers.  Major chains will look at Cape Coral again and hopefully come here soon.  By the way Outback Steakhouse and a new hotel will be at the Pine Island - Del Prado intersection very shortly.

Michael Schneider-Christians and his family are residents of Cape Coral since 1985

Some Important Facts and Figures 
(as per Lee County Property Appraiser & MLS data)

Single Family Home Sale Numbers and Values in 1998 and 1999:

Single Family Home Sale Numbers by Location in 1998 and 1999:

Active Listings Single Family as of Dec. 31st, 1999 in Cape Coral in Comparison to the County:

Sales of Single Family Homes for 1999 in Cape Coral in Comparison to the County:

Single Family Sales by Number of Bedrooms in 1999 in Lee County:

Seasonality of  Residential Real Estate in the County by Quarter:

Vacant Land Sales Numbers and Values in 1998 and 1999 in Cape Coral:  (property appraiser date)

Cape Coral Lot Sales in the last 10 years as per MLS data taken from “Update Cape Coral”:

Condominium Sales in Numbers and Values in 1998 and 1999:

The figures explained:

Sales of homes have increased by 16%, the values (prices) even more, +24%.  36% of all active residential listings at the end of the year were in Cape Coral.  39% of all sales in the county happened in Cape Coral; while the population is less than 25% of the county.  87% of all homes sold have 2 or bedrooms.  The 4 bedroom home is not an important part of the market yet.  There is no major dominant season anymore in the Cape.  Sales for 1999 were 27% for the 1^st and 2^nd quarters and 23% for the 3^rd and 4^th quarters.

Figures are from sources deemed reliable.

FuturesCape presented by WCR on March 23rd, 2000
The Cape Coral Residential Market at the Beginning of the new Millennium
by Michael Schneider-Christians, MBA, CIPS, Realtor with CENTURY 21 Sunbelt Realty