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City of Cape Coral

LISTERS PLUS REALTY, INC.

BY SAYO MEHMEDBASIC, BROKER/PRESIDENT

WELCOME TO OUR NEWSLETTER

Many will ask about the purpose of this newsletter and for the reason we have decided to spend a bunch of money and time to deliver bad news.

OUR goal is to keep you informed about the Cape Coral Real Estate Market. These are tough days for property owners and it is very important to understand what is going on. WE already know that you are not going to like today's facts or our opinion but unfortunately that will not change it.

WE are seeking to make new friends and customers for the long term. WE will prove to be honest, experienced and trustworthy. WE would like to establish a relationship with you, so that when you decide to make a move you are going to give US, at LISTERS PLUS REALTY, an opportunity to serve you. This is going to be a BUMPY ROAD, but we CAN make it TOGETHER. Meanwhile, we will report on CAPE CORAL REAL ESTATE statistics and rumors in this NEWSLETTER at least once a month .

PLEASE CALL 1-800-209-8566 OR E-MAIL US AT

LISTERSPLUS@EARTHLINK.NET

PLEASE DON'T SHOOT THE MESSENGER!

JUNE 2008

OK, my dear friends, the summer of 2008 is upon us. But, this time I have better news than before. Again, as I have said many times in the past (check my archive), do not expect MIRACLES.

So, sales are up compared to the same time period last year. As of today we have sold 1242 homes compared to 895 within the same time in 2007. Prices are still going down thanks to the huge wave of foreclosed properties that are pouring back into the Market. They are offered at about $60-$90 per sq foot. Beware, the supply of these homes is huge but limited, too. Either they are selling relatively quickly or they don't sell at all, due to the poor condition or bad location. In addition, builders going out of business or those who are just liquidating their inventories are selling below replacement value. Let me remind you that it would be very hard to build a new house without paying at least $100 per sq foot, on top of the purchase price of land for the home. Unfortunately, this is creating a very tough situation for the average seller who either can't or won't adjust to it.
This is also a major reason why we have close to ZERO new homes going up. NO new homes equals NO contractors or sub-contractors hired. This equates to a lot of jobless people. Where do they go?
In 2007, a total of 336 lots were sold between Jan 1 -May 31. This year 450 lots were sold by the end of May. Our office has sold vacant lots in the past few months starting from $13,000.00 all the way up to $800,000.00; however the least expensive lots are selling the fastest. Land values have gone down more sharply than home values.
Taken as a whole, sales are up approximately 20% compared to the same period last year.
Summer still looks OK to me; but, as usual, sales will slow down anyway. I believe the slowdown will not be as severe as in 2006 and 2007 because we have more to offer this time.
The number of properties for sale is finally going down. As of today, the inventory of houses offered for sale is 4700 and the inventory of vacant lots is below 4300. It is down for the first time since 2005. Hallelujah! (Check my archive to compare the numbers.)
All these are signs of healing. Are we at the bottom, or are we at least close to it? Yes, I think we are close to the bottom! Remember, the only confirmation that we are at the bottom is when prices start to rise. When prices do start rising, will this Real Estate Market go thru the roof again? No!! The miracles of 2004 and 2005 are not going to be revisited. Please don't allow those two years to boost your expectations unrealistically. It is not going to happen!
As we all know these are very tough times economically for many Americans. The situation in Florida is even worse than elsewhere. High prices for gasoline, food and pretty much everything else, combined with high unemployment, are taking a toll.

Click to view the Archive page of previous articles