Cape Coral and the Real Estate Market in August
Q3 is in full swing bringing with it (as expected) fewer sales. The second quarter is when Cape Coral sees its peak selling months before sales begins to level off.
Distressed sales continue to drop bringing us closer to a "normal market" one where distressed sales make up between 3-5% of the total sales.
Cape Coral sale prices remain up from last year. The average sales price is $250k up 5.4%.
Fort Myers saw an increase in total sales in July over the previous month, total sales were 314. Unfortunately mostly due to distressed properties.
Total permits issued plummeted last month (over last month and the year before) to 88. New construction is one of the key indicators to watch to determine market direction.
"Nationwide Industry News"
FHA condo relief is coming! FTHB (First Time Home Buyers) will soon find it easier to qualify for a mortgage in more condo developments. The Bill will make FHA recertification less burdensome and will lower FHA's owner-occupancy requirement from 50% to 35%, also, FHA will be required to replace an existing policy on transfer fees with a less restrictive model.
UEP SW 6&7 hookups, the city has been delayed 2-3 months for the final inspection (sewer) including the backfill and sewer pressure testing.
Buyers that are purchasing properties cash can now get a loan the day after up to 80% of the appraised value and not purchase price freeing up capital.
o Buyers must qualify (620 credit for conventional loan) 45% debt income ratio
o Loan is a fixed rate
o Monies used to purchase the property must be tracked
o Monies can be a gift but must be paid to the gifter after closing.