Cape Coral property prices are 16% below peak

November 6, 2018 6:17 pm

Cape Coral property prices are 16% below peak, new figures show.

U.S. single family homes and condos sold for a median price of $256,000 in Quarter 3, 2018. That is up 4.8% from a year ago and 1% on the previous quarter. That is according to figures from database specialist, ATTOM Data Solutions.

Cape Coral property prices are 16% below peak

Median home prices in Q3 2018 were below their pre-recession peak in 47 of the 150 metro areas analyzed for median prices (31%). Cape Coral property prices are 16% below peak.

The median sales price in Cape Coral was $219,950, an annual rise of 3.3%.

The national increase was the slowest annual home price appreciation for two years.

However, those who sold their home nationally in Quarter 3 2018 sold for an average of $61,232 more than their original purchase price. This is the highest average home seller price gain since Quarter 2, 2007.

This is an average 32.3% return on the original purchase price. The figure is up from an average 31.6% in the previous quarter. It is also up from an average 31.4% return in Q3 2017 — although still below recent peak of 32.5% in Q4 2017.

Effect of affordability cushion

Daren Blomquist, senior vice president at ATTOM Data Solutions, says, “The continued slowdown in the rate of home price appreciation nationwide and in many local markets is a rational response to worsening home affordability — which has deteriorated at an accelerated pace this year due to rising mortgage rates.

“Markets not experiencing this price appreciation cooldown may have more of an affordability cushion to work with, but some are in danger of overheating if home price gains continue to run hot.”

U.S. homeowners who sold in Quarter 3, 2018 had owned their homes an average of 8.23 years, up from an average homeownership tenure of 7.97 years in Quarter 2, 2018 and up from 7.98 years in Quarter 3, 2017. This is a new record high going back as far as homeownership tenure data is available, Quarter 1, 2000.

Distressed sales — sales of bank-owned homes, short sales, and sales to third-party investors at foreclosure auction — accounted for 11.6% of all U.S. single family home and condo sales in Quarter 3, 2018. This is down from 12.8% a year earlier.

All-cash purchases accounted for 27% of all single-family home and condo sales in Q3 2018. This is down from 27.4% in the previous quarter but still up from 26.5% in Q3 2017.

Data for the ATTOM Data Solutions U.S. Home Sales Report is derived from recorded sales deeds, foreclosure filings and loan data.