Chris Canzano Cape Coral Real Estate Specialist

The Cape Coral real estate market which is currently plagued by a record number of foreclosures and short sales now has affected the construction industry which employs so many in this area. Due to the large number of these distressed properties on the market, many of them available bleow the cost of replacement has meant that it is increasingly difficult for builders to build new homes.

The question I hear all the time is why would someone contract with a builder to build a home when they can buy a new never lived in home for less money than the cost of construction. Even if the buyer really wanted to build a new home so they could have it "their way", it is next to impossible to get an appraisal to substantiate the cost of construction these days. Banks are cutting prices substantially to get these properties off their books.

In August 2008 the city of Cape Coral issued only 11 building permits for the entire month. This is half of the 22 issued in June. A year ago August, when every one thought the numbers were low at 47, now pale in comparison.

The reality is the oversupply of Cape Coral real estate does not need more inventory stocked on the shelves. Building lots of new homes when the number of, homes ready to move into is to much, makes no sense. I expect this low permit volume to continue for quite some time. Especialy in the market segment under $500,000 since this is where the majority of the foreclosures exist.

Where it does make sense to build a new home is in the higher price points, typically in the $1 million + price range. There are less distressed sellers than in the lower price points and the "luxury home buyers" are typically willing to pay for the "I want what I want" rather than settling for something else.

With the large volume of BRC (Below Replacement Cost) properties currently available, now is an exceptional time to take advantage of owning a newer home for less than building a new Cape Coral home. Want to know more about these properties read our FREE REPORT, "How To Successfully Buy Foreclosures and Short Sales" & "The Ten Biggest Mistakes Buyers Make".

This guide will help you understand the current Cape Coral real estate market conditions and how you can make the most educated decision to finding the best possible deal for you!

Cape Coral Foreclosures dropped by 311, almost 13% in the month of August compared to July. August saw 2,156 Cape Coral foreclosure filings and July saw 2,467 Cape Coral Foreclosures filed. This is encouraging news as we are starting to head in the right direction. The real question is will this trend continue.

For buyers in the market for a new home who have been sitting on the fence waiting to time the bottom, this just might be the signal you need. Once the media puts their belssing on it after another couple of months of declines everyone will be rushing out looking to buy a Cape Coral home. If you are serious about buying a home, now is an excellent time. Prices and availibility of choices are plentiful.

Unsure how to buy a Cape Coral foreclosure or short sale watch my interview with Amy Wegmann, FOX 4 News in my previous blog. You can also download our special FREE Guide, "How To Successfully Buy Foreclosures and Short Sales" and "The Ten Biggest Mistakes Buyers Make"

Opportunity is knocking, will you answer the door? Don't wait till next month, becuase if the number of filings is lower you can count on their being more competition in the Cape Coral real estate market.

Yesterday afternoon I had the pleasure of being interviewed by the local Fox News station's anchor Amy Wegman. Stephanie Whiffen, Sr. loan officer for Fifth Third Bank invited me to meet with her and Amy to discuss the short sale properties in Cape Coral.

The interview will air during Wednesday evening's 10 pm early news. There appears to be many questions from consumers as to what exactly a short sale is and how it compares to a foreclosure.

One point that I am constantly reminded of in our industry is that those of us in real estate tend to use "lingo" that we understand and take for granted the public knows what we are talking about. Case in point is the term short sale.

Some might think that the term short sale would mean that the time period to purchase a short sale would be short in nature. In actuality, those of us in the industry trying to sell a short sale know that they are typically anything but short. In fact, they are proving to be some of the longest decision making sales we have ever encountered. 30-day decisions are a rarity. Sixty to ninety days or more just to get an answer from the bank is not uncommon.

What you will learn is that in most cases Cape Coral foreclosures are easier and faster to buy than Cape Coral short sales.

Check back tomorrow and I hope to post a link to the interview.

Want to know more about how to win at buying foreclosures and short sales in the Cape Coral real estate market? Download my FREE REPORT, "How To Successfully Buy Foreclosures & Short Sales" & "The Ten Biggest Mistakes Buyers Make."