Cape Coral Proposed Utility Expansion Map



Cape Coral Update

The Cape Coral market is mixed depending on location and whether the property is gulf access. 

A survey of water front sales and listings in the Yacht Club in the past year shows the median sale price increased 8.6% year over year but declined 11% from the previous quarter.  Sales activity slowed 14% in the past three months, and the number of listings increased 44%, resulting in a 7.2 months supply at current sales rates.

Looking at gulf access housing in SW Cape Coral west of Chiquita Blvd we find an 11% increase year over year and a 10.5% increase in the past quarter.  Inventory has increased 65% in the past quarter, resulting in a 15 month supply at current sales rates.

Looking at SE Cape Coral gulf access properties we find a 4.8% increase in the median sale price over the past 12 months.  Like other sub markets inventory has increased 60% in the past three months, resulting a 6.94 months supply at current sale rates. 

Its interesting to note that, except for the Yacht Club neighborhood, prices have increased despite the higher inventory levels.  Marketing times are generally less than 90 days.  In each sub market the median listing days on market is lower in the past quarter due to the influx of new listings.  Older listings are generally higher prices and have been listed for more than 90 days.

The numbers above show the seasonal nature of this market, where many buyers list in the fall months in order to sell during the busier winter season.  Sales activity typically peaks in the 1st quarter (Pending) and 2nd quarter (Closed) of the year and inventory then declines through the summer. 


About Cape Coral

Yacht Club Park Pier


Cape Coral is a pre-planned, pre-platted city located on the gulf coast of Florida. Bordered by the Caloosahatchee River to the east and south, and Matlacha Pass to the west, the city is approximately 120 square miles in size and is reported to be the geographically largest city in Florida. The 2010 census places the population at 154,000 residents.

The unique aspect of Cape Coral is its reported 400 miles of canals within the city limits, approximately half of which are salt water and allow boaters access to the Gulf of Mexico from their back yard canals and docks. The freshwater canals in the city are used for storm water control, and allow for boating and fishing within the city limits.

Cape Coral began in 1957 when developers Jack and Leonard Rosen purchased approximately 103 square miles of land known as Redfish Point. It is reported that the first house was completed in 1957. Early development took place in the area now known as the Yacht Club neighborhood, and spread northward along the Caloosahatchee River. Waterfront living was the driving factor in the early development of this area. Prior to the housing boom of 2003-2006, nearly all development in Cape Coral, both residential and commercial, took place south of Pine Island Rd. Beginning in 2002, the residential real estate market accelerated and thousands of houses were built in the city. Previously undeveloped areas, including most of the city north of Pine Island Rd, experienced the most growth. Prices peaked in 2005 - 2006, and sales activity slowed until the foreclosures hit the market in 2008 and prices plummeted.

Canals in Cape Coral

Some things to consider when purchasing a home in Cape Coral:

  • Waterfront - If you are looking for a waterfront house there are several things to consider. Boat size, draft, height and distance to open water are all important factors in deciding where to buy. Not all canals are the same. Some have bridges that restrict boat size and height. Others may be too small to turn your boat around. Travel times to open water can be quite long for some locations in the middle of the city.
  • Utilities - The city has plans to extend water and sewer service to all areas of the city. The cost of the expansion is assigned to each parcel, and can be paid as part of the annual property tax payment. There is also an impact fee, and hookup is mandatory once completed. The city council recently (2012) voted to restart the utility project, which had been placed on hold due to the recession. The first neighborhood to be completed is a neighborhood labeled SW 6-7, which is mostly south of Pine Island Rd. Two additional areas north of Pine Island Rd are scheduled to begin in a few years. Check with the city utility department before deciding where to buy.
  • Future Land Use - Because this city is pre-platted, there are many lots adjacent to busy four lane roads and vacant lots zoned for commercial use. When buying, check zoning and future land use maps to verify your current or future neighbors are residential or some variation of residential use. This can avoid headaches in the future.
  • Flood Zones and Storm Surge - Because Cape Coral is surrounded by water, there is always a chance of a hurricane or tropical storm causing a storm surge. Houses in Special Flood Hazard Areas may require flood insurance if the mortgage is sold to a GSE (Fannie Mae, Freddie Mac etc.). Other areas of the city are lower risk, but the cost of coverage is low compared to the expense of a flood or storm surge.
  • Some useful links:

    City of Cape Coral

    Cape Coral Daily Breeze

    FEMA Flood Insurance