Cape Coral Florida's Real Estate Guide

Business in Greater Fort Myers is booming thanks to what was once known as the bane of the real estate market: Foreclosures. Sales here are up 116 percent year to date through June, mostly due to the large interest in foreclosed properties in the area. Many local real estate agents are seeing bidding wars on these low priced homes, with multiple offers streaming in just days after a home is placed on the market.

Why such the high demand? During the real estate boom, homes in the Cape Coral-Ft. Myers area were in demand causing an extreme spike in home prices. Now that prices have come down by over 50 percent in such a desirable area, it is only to be expected that buyers would be coming out of the woodwork to take advantage of current market conditions.

According to the National Association of Realtors, 61 percent of the 1,551 single-family homes sold in June were foreclosed properties. 15.5 percent of sales were short sales. While this may bode well for those in the market to buy, it does not necessarily bode well for the real estate market overall. There is some debate as to how this foreclosure boom should be viewed with some seeing it as a precursor to a housing recovery and others believing it to be the real estate version of a stock market false bottom.

"In the initial phase it was a drag on the market, bringing overall prices down," says Lawrence Yun, chief economist for the NAR. "Now buyers are saying, 'That's a good price', meaning a low price. Because there are buyers, a bottom is forming." Richard A. Smith, CEO of Realogy, sees no silver lining. "Take the REO [foreclosure] business away, and you are back to 1997-1998 levels and that is a scary proposition."

Could investing in a foreclosure or short sale property be a good decision for you? While there are many factors to consider, it is a good idea to take the time to determine if such a purchase could be right for you. With the tax incentives and downpayment assistance programs available to buyers right now, you may find that homeownership is within your reach and a wise investment into your future.