One of the most succinct ways to summarize our real estate market in Southwest Florida is that right now it is a good time to be a buyer and a challenging time to be a seller.
A Forbes study ranks the Cape Coral-Fort Myers market at -8% for home-equity-to-home-value, the second worst in the nation. This current underwater position is a dramatic a shift from the 68% home-equity-to-home-value that Southwest Floridians enjoyed in 2006.
The loss in value has pushed Southwest Florida home prices down to levels of about 8 years ago, well before the bubble run-up. These significant price drops have made it most challenging for any homeowner who purchased after about 2003 to break even when selling a home.
For buyers, the equation is very different. Many properties here in Southwest Florida are selling well below the actual cost to build a similar home. Some of the best deals can be found with bank-owned foreclosures. Here is a resource to view active Southwest Florida foreclosure listings. The best priced bank-owned properties are currently in many cases attracting multiple offers and selling at or above asking price.
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