SWFL Months Of Inventory Drop But Not Because Of Sales - Cape Coral, Ft Myers, Naples

[Adam Bartomeo]

Below are two charts that show the amount of unsold "improved" properties. I broke them down into 2 charts, total unsold and unsold by property class (SFH, Condo, Townhouse).

The month of April had more unsold properties than any other month for the past 7 years. April and May are traditionally when sellers give up selling because season is over and most of the buyer's head back up north. So, it is not uncommon for SWFL to spike during the months of April and May. 

From the second chart we can see that SFH's are the reason that we had such a spike in unsold homes. Condos and Townhouses remained at normal levels in comparison to other years. A third chart that I did not include would show you that the spike was also caused by "dry lots", meaning no waterfront.

So, where did all of the inventory go? It has surfaced in the annual rents and vacation rentals. There are also the homeowners who just left it empty as a second home or are still living in the property. We are experiencing a decline in rental prices both for annual and short-term rentals. Although, it is a great time to buy because houses are still discounted but wont remain that way for long, it is getting more difficult to rent houses. We are seeing more vacancies, for longer periods of time, and for lower rents.

Personally, I am very bullish on the Cape Coral market because the prices are lower than they have been in 3 -4 years. I just purchased a SFH that we are rehabbing and will rent for a buy and hold. I am submitting 5 - 10 offers on SFH's each week in hopes of taking advantage of the current market and to take advantage of the future market.