What I’d Do If I Owned a Home in Cape Coral Right Now
Cape Coral, Florida, is making headlines for all the wrong reasons. According to the Wall Street Journal, this once-booming waterfront city is now the worst housing market in the country. Home prices are down 11% over the past two years, half-built homes are sitting unsold, and nearly 8% of homeowners owe more than their home is worth. It seems that there is no reprieve to the falling prices.
If I were a homeowner in Cape Coral today, here’s exactly what I would do.
Start With a Real Conversation
Before doing anything drastic, I’d sit down with a qualified local real estate agent. And I mean really sit down. I’d want to know which homes in my area have actually sold and what they had in common. Was it price? Renovated condition? A specific location? Are buyers showing up at all? These are the questions that matter.
Read: Why Isn’t Your home Selling? A Real Conversation
If the feedback pointed to a pricing issue, I’d want to know what it would realistically take to be competitive and not wishful thinking, but what the data shows.
Understand Your Position: Are You Underwater?
With nearly 8% of Cape Coral homeowners currently underwater on their mortgage and possibly more owners being added to this list with the falling prices, it’s not unrealistic to find yourself in this situation. If the home’s value is below what you owe and you can’t bring cash to the closing table, you’ll want to start a conversation with your mortgage company right away.
What Is a Short Sale?
A short sale happens when your lender agrees to let you sell the home for less than the remaining mortgage balance. It’s not ideal, but it can be a responsible way to exit a tough situation without going through foreclosure.
To explore this option:
- Talk to a real estate agent experienced in short sales
- Gather your financial documents (bank statements, hardship letter, mortgage details)
- Contact your loan servicer/mortgage company and request short sale packet instructions
- Be prepared for a long process with lots of paperwork
Lenders often require proof of hardship and that the home is listed at market value before they’ll approve a short sale. It’s also worth noting that a short sale can impact your credit, though typically less than a foreclosure.
Renting Might Be the Better Option
If you’re not upside down and selling doesn’t make financial sense, you may need to consider renting the property until the market stabilizes. Just be realistic, this recovery won’t be quick. Based on the inventory numbers and the pace of price drops in Cape Coral, we could be looking at a 3 to 7-year timeline before prices bounce back.
Right now there are 12,000 homes listed for sale in Lee County and the falling prices are real. That’s more than triple the number from just a few years ago. Many sellers are cutting prices, and buyer demand has cooled. So if you rent, make sure the numbers pencil out. Don’t count on the rental income to save you, especially since oversupply and seasonality are real challenges in the rental market as well.
The Bottom Line
The Cape Coral market is in a tough spot with the falling prices. If you need to sell, pricing it right and being realistic about your options, especially if you’re underwater are key. If selling isn’t viable, renting and waiting for a market rebound could be your best bet.
Either way, it starts with an honest, data-driven conversation with a real estate professional. If you need help finding someone to talk to in your area, I’m happy to connect you with a trusted agent who knows this market inside and out.
