The Cape Coral Real Estate Price Pendellum Has Swung Too Far

Cape Coral Real Estate - Tops In Foreclosures

We all know real estate goes in cycles. When markets heat up, they need a cooling off period. As prices get out of balance, they should come back to earth and find that middle ground. It is amazing to me that what is occurring in many markets is not only have prices retreated, but they have gone so far that in many cases you can now buy a home for less money than the cost of building a new home, even if the dirt were FREE. There is probably no better place in the country to take advantage of this opportunity than with Cape Coral real estate. Cape Coral foreclosures and Cape Coral short sale properties are abundant with single family homes starting in the $70's.

What is more surprising is that many buyers still do not recognize this. Wall Street corporate raiders made fortunes buy buying companies below their replacement cost. It was only a few short years ago that buyers lined up early in the morning, got into bidding wars to buy property, and now when shown a home that can be bought for 10%, 20% and as much as 30% below the cost of building it new (with the home site thrown in for free) they are unsure if they are getting a good deal.

The Cape Coral real estate market that is experiencing this anomaly. Because of the large number of institutional sellers (banks), whether it be a foreclosure or short sale have chosen to reduce the selling price so substantially to get these properties off their books that anyone looking to build a new home in the sub $400,000 price range would find it next to impossible not to take advantage of one of these amazing values.

As you move up the price scale this becomes much less common with Cape Coral homes for two reasons. First, there are less bank-controlled properties in the $1 million price range and secondly the land values are holding steady.

BRC (Below replacement Cost) Properties wont last forever. When they are gone, they are gone and then everyone will want one. Isn't that always the case? We all want what we can't have. A couple of years ago everyone wanted one. Today you can have it! Take advantage of it. When this market cycles back around you will be very glad you did.

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