Housing indicators in Lee County Florida including Cape Coral Land purchases and nationally look good for the most part as does the overall economy, according to experts. In Lee County, home prices are going up and stabilizing nearly across the board and in some cases have surpassed peak 2005 levels.
A lot of that increase in value has to do with where a property is located. Neighborhoods broken down by ZIP codes seem to make a lot more sense than when it’s broken down by price range. It’s about location, not price range, it’s how close you are to the beach, which really drives your value. This rings true also when purchasing investment real estate.
Condos haven’t seen as large a jump in price as single- family homes, but there are a number of reasons for that. There have been financing challenges in the condo market including foreclosures and unpaid fees and that may have kept that condo market depressed over the past 12-24 months. As we see home prices stabilize, the condo market will start to grow.
Statewide, the housing market has rebounded nicely from recession lows and economic indicators, which are tied closely to the real estate market, look positive, particularly for the wealthy. There is a very close correlation, between million-dollar-plus home sales in Florida and the Dow (Dow Jones Industrial Average), so it’s kind of an indicator or where home sales are going to do.
In addition, transportation and infrastructure investments in Southwest Florida could help spur economic development, leading to a stronger local economy and higher home sale prices.
Nationally, the overall economic indicators look good, but the housing market has a few weak spots. Wage stagnation, the unavailability of credit for subprime borrowers and a lack of lower-income housing are depressing the market.
A bright spot for Florida is the region’s favorable location and constant population growth. Population growth is Florida’s saving grace. People just want to be here and that’s what’s driving the real estate market in the region.
To learn more about the current state of the Lee County real estate market, contact a member of the 9 Core Realty team at (239) 333-2221.