Cape Coral Dubiously Makes Top Lists Again -News Interview

[Adam Bartomeo]

After years of buying, selling, investing, and managing real estate in SWFL the local news organizations often reach out to me about what is happening in the market. Here is my latest interview.

CAPE CORAL, Fla. (WINK)—Cape Coral had the fifth-highest number of foreclosure filings across the country last month, according to real-estate data analytics firm ATTOM.

Lakeland, Florida had the worst foreclosure rate among U.S. metros with more than 500,000 people, ATTOM reports. Cape Coral rounded out the top five with one-in-every-1,628 housing units filing for foreclosure.

Cape Coral real estate broker Adam Bartomeo says he's not surprised by the numbers. He describes the Cape Coral housing market as a cycle of boom and bust.

"What goes up must come down, and we're there," Bartomeo said.

During the pandemic, Southwest Florida real estate was red hot. Now, the market has cooled significantly as prices have become less sustainable for many homeowners.

"The prices couldn't stay that way, and people can't afford those mortgages," Bartomeo said.

Bartomeo said higher taxes, insurance rates and unemployment are to blame as some people struggle to afford mortgage payments.

Cape Coral Realtor Karen Borrelli said a sluggish economy is putting a strain on the housing market.

"I think they've ticked up because our overall expenses have gone up," Borrelli said. "I think everybody's wallet is kind of feeling it, not only with food prices, but we've had insurance prices, taxes, just everything going up."

ATTOM says nationwide, default notices, scheduled auctions and bank repossessions are up 18% compared to the same time last year. However, they are down 8% from March of this year.

Despite the foreclosure numbers, Borrelli says Cape Coral remains attractive to buyers. In March, Lee County recorded 2,215 home sales, according to Redfin.com. That's up 14% compared to the year before.

"People are still flocking here because of our 400 miles of waterways," Borrelli said.

More foreclosures could mean more deals for buyers. Bartomeo says some banks will offer up to a $100,000 discount on foreclosed properties.

Redfin.com data shows the median price of a Lee County home flatlined between December and February, before jumping up in March. Bartomeo said he believes the market will begin to stabilize over the next year, before home prices tick back up.

Although Cape Coral inventory is high compared to historic levels, Bartomeo said, it has dropped from the year before.

"It's way lower than it was last year at the same exact time," Bartomeo said. "Which is a great indicator that the market should improve."

[Carlos Julio]

Great insight as always Adam... looking forward to the market get stabilized not only for property value but also for rents ... 

Great time to buy!!