Cape Coral Florida's Real Estate Guide

lemence for CNBC.com

When Carole and Jim Gourley started looking at vacation properties in Florida last December, they weren't all that serious. The retired couple, who live in Ontario, had rented in Panama City Beach for five winters. Stuck at home with a sick pet this year, Jim Gourley started browsing for foreclosures down south for fun.

"One thing led to another and we found a condo we liked the look of and decided to pursue it," Carole Gourley says. "We could not believe the prices that some of the properties were being listed for, especially since the one we liked is only four years old."

They ended up buying a three-bedroom condo in Bellasol, a development in Fort Myers, where prices currently range from $39,000 to $170,000. "We paid 25% of the original selling price," she says. "We feel that we got an extremely good deal.

The Gourleys are part of a new surge of buyer interest along Florida's Gulf Coast, where real estate websites are seeing a dramatic increase in traffic and local brokers are experiencing an uptick in inquiries and sales.

In housing markets around the country, there are signs that perhaps the bottom has been reached, and sales are beginning to come back up-with prices hopefully to follow.

To get a handle on these rebounding markets, we asked real estate search firm Trulia to tell us the cities in which they have seen the greatest rise in searches-a proxy for buyer interest-over the last year

The result: Seven of the ten cities were in Florida, a poster state for the real estate boom and bust, and five were on the Gulf Coast side of the state.

Source: Trulia.com

Obviously, this isn't boom buying, wherein people are investing their money because prices are rising dramatically.

"Basically, the market crashed so hard, prices have fallen so much, that places have become interesting to people again," says Mark Washburn, a realtor at Island Coast Realty in Ft. Myers who blogs about the local market.

Sales for Lee County, Fla., which includes Fort Myers and Cape Coral, were up nearly 80 percent from 2007 to 2008, he says. "That's pretty impressive. The caveat is the prices are half."

The same holds true in the other Florida markets, says Stan Geberer, associate at Fishkind & Associates, a real estate consulting firm based in Orlando. "Those are all places that have seen a 30 to 50 percent decline in prices over the past year or so," he says. "From the peak of the market they may be down even further than that."

According to the Office of Federal Housing Enterprise Oversight, in the fourth quarter of 2005, home prices rose 36 percent in the Cape Coral-Fort Myers area, 38.3 percent in the Naples-Marco Island area, and 28.2 percent in the greater Miami area. In just the last quarter of 2008, prices fell 32.9 percent, 32.8 percent and 24.1 percent respectively.

"Those areas saw the greatest levels of overbuilding, the greatest levels of speculation during the bubble," says Geberer. "[Southwest Florida] was a heavy area for starter home investors." 

Those price declines are luring bargain hunters. Some are vulture investors, Geberer observes. Washburn is seeing people from north of the Mason-Dixon line, and many from Canada.

National real estate brokerage Coldwell Banker Real Estate is seeing buyers push life plans up as a result of the economy, and seeking deals on their retirement homes. First-time buyers are coming back into the market, says Jim Gillespie, president and CEO of Coldwell Banker Real Estate, thanks in part to federal incentives, which include a $8000 tax credit for first-time, residential buyers.

In the comeback markets, many of the deals are short sales or foreclosures. In last quarter of 2008, according to the National Association of Realtors, 45 percent of real estate transactions in the US were so-called distressed sales.

But Gillespie points out that there are also markets that have been strong all along; places like Columbus, Ga. Inventory is up there, but prices are too-very, very slightly, about 1 percent. The same holds in Shreveport, La., and San Antonio, Texas, he says. "In most of the heartland of America, the prices are stable."

While it may not be an easy sell to consumers, he argues that it's a great time to buy: Interest rates are at historic lows, with high inventory levels, there's lots of choice, and prices are down. 

"Once the inventory levels are burned off in those hardest hit states we'll have a balanced market," Gillespie says. "And things will start to go up."

© 2009 CNBC.com

There has never been a better time for European investors to purchase real estate in the United States. Simply put, historically low home prices plus the rising value of the euro equals a real estate investment that is second to none. People all over Europe are recognizing this opportunity and taking this chance to own their own home in the U.S. Recently, in many cities, foreign investors are coming to real estate agents requesting to buy up to an astonishing 1,000 homes at a time. Why? It is really one of the safest investments that you could possibly make.

It is only a matter of time before the U.S economy stabilizes and recovers from the current recession. With President Obama so determined to stabilize the housing market, change is bound to come sooner rather than later. When that happens, homes purchased during this down time will spike in value and investors will see a dramatic return on their investment. Unlike many Americans, Europeans have the finances to take advantage of this down economy and low housing prices to make an extremely lucrative investment.

Are you a European investor looking to purchase property in the U.S.? Look no further than Cape Coral. Home prices are incredibly low-million dollar homes can be purchased for pennies on the dollar. This location has nowhere to go but up so get in now while you still can! Contact me for information on available properties in Cape Coral today!

This week, President Obama revealed the details of a loan modification plan that is designed to help struggling homeowners stay in their homes. As part of the recently passed economic stimulus plan, $75 billion dollars has been allotted to reworking troubled loans. It is expected to help as many as 4 million homeowners and stop home values from continuing to plummet. Let's take a look at how you will benefit from this new plan.

If you are a homeowner who is having trouble making payments on your primary residence, you may be eligible for a loan modification. Your occupancy will be verified and you will be required to sign an affidavit of financial hardship. Other requirements include:

• Proof of Income
• The loan must have originated on or before January 1, 2009
• The balance of the loan cannot exceed $729,750.00

If you meet these requirements and your mortgage lender is willing to participate in the program, your payments will be reduced by your lender to no more than 38 percent of your monthly gross income. Then the government will step in with funding to bring your payments down to no more than 31 percent of your monthly gross income. To achieve these numbers, your interest rate will be lowered, your loan term may be extended for up to 40 years, and if needed, your lender will forebear loan principal at no interest. Your lender may also choose to reduce the principal of your mortgage, but is not required to do so under this plan. Contact your lender to see if you can take part in this new plan and save your home from foreclosure.

If you do not qualify to take part in this plan or if you simply are not behind on your mortgage, this plan is still good news for you. Provided that this plan works, housing prices will stabilize. By putting the brakes on further foreclosures, property values can stop falling and even increase. This is good news for those who have been wanting to sell but waiting for the market to calm down. You may be able to put your house on the market and make that move up you have been dreaming about without taking a huge financial hit.

There is something in this plan for everyone. This plan also has a $8,000 first time home buyer tax credit and other incentives for homeowners. For more information on available tax incentives or to buy or sell a home in Cape Coral, contact me today!

If you can say that you aren't in trouble with your mortgage, then consider yourself one of the lucky ones. Making responsible choices has paid off and so far you haven't had to face the threat of foreclosure on your home. Unfortunately, in today's economy, it is tough to be sure that it will remain that way. Unemployment rates are through the roof and unexpected events such as serious illness are enough to take down even the most consciencious homeowners. Here are some things you can do to recession-proof yourself and make sure that your home doesn't become a foreclosure statistic.

Most importantly, you must save, save, SAVE! Make sure that you have a minimum of three months worth of mortgage payments saved in case of emergency. To get there, make a household budget and stick to it. Chances are that if you sat down and reviewed your current spending habits you will see ways you can cut back. Here are a few ideas that can help you build up your financial safety net:

• Cut out the coffee (not completely, of course)-Are you addicted to stopping at Starbucks? Gotta have your Dunkin Donuts? Coffee at places like these can be $2-4 per cup. Break out your coffee maker and brew your own to save some cash.
• Bag your own lunch-Going out to lunch is great but it takes its toll on your pocketbook and waistline. Spare both and bring your lunch from home. You'll end up with extra money and extra room in your jeans!
• Make it a movie night-Do you love the nightlife? Drinks out these days go for up to $10 a piece. Save your cash and spend the night in with a good movie and a bottle of wine. Your wallet will be glad you did!

Keep yourself honest in your efforts by writing down your purchases each day. Review them objectively at the end of the day and if you stumble, make it a point to do better the next day. By keeping your eyes on the prize and building your financial security, you can ensure your future no matter what the economy throws your way.