Everyone wants to know when the housing market will recover in the US and specifically in our area of Cape Coral Florida.  Many theories are out there as to when and why we will recover.  I have my own opinion based on my experience as both an investor and a Realtor.

Historically, the Cape Coral market has been ahead of the curve as far as downturns and upturns in the housing market.  We tend to be the bellwhether for the US housing market i.e. so goes Cape Coral so goes the US albeit delayed.  For the past 10 or more years when our market has gone up you can expect the rest of the nation to follow.  This is also evident when our market turns downward.  Since our market has traditionally had wild swings upward and downward, the signs of a recovery will be more evident in our market.

Market experts like the Concord Group, based in Newport Beach California, predict that home sales will recover by the fourth quarter of 2012 with some well positioned markets improving in late 2011 and early 2012.  We must factor in foreclosures and the effects of the 'Robo signature' problem that has affected many of the banks.  Hopefully the issues are technical which will be quick to resolve.

In our market, we are already seeing signs of reduced homes in the Lis Pendens or pre-foreclosure stages and more homes being sold.  Even though our market has dropped in price .7% in September 2010 from August 2010, this is far less than we've seen in the previous months.  I've seen multiple offer situations and homes actually sold for above the asking price.  In contrast to this, I've seen homes appraised for less than the agreed upon contract price which is hampering the recovery efforts.  Appraisals are a problem because of the new appraisal rules and the fact that some of the appraisers are coming from out of the area and don't have a grasp of the local market and its nuances.

Given all this as well as the economic outlook for Cape Coral, our market should recover in mid 2011.  This assumes that government spending gets under control at both the local and federal levels which is a big 'IF'.

How much is the Cape Coral market likely to go up in 2011?  My prediction is that prices will increase 4% in 2011.  This is extremely low for our market but it is a start.  2012 should see increases of 6 to 10% which should bring builders back into the market.  2013 should show continue to trend.

What are the early signs that our housing market is recovering?  Home builders getting back into the market is a sure sign of a recovery.  We've started to see selective building going on but this is not the sign that we are searching for.  We want to see Home Builders buying up raw land or at least optioning raw land.  This is the first step to a recovery.  Another step in the recovery to look for is population increases as well as international buyer interest and increased snowbird activity.

For everything Cape Coral Real Estate, please visit my websites at www.livingincapecoralnow.com and www.dancraddock.com.  Call Dan at 239-210-1356 or email d_craddock@yahoo.com for all your real estate needs.

Have a Prosperous Day!