Cape Coral-Fort Myers Florida Local Market Report Q1 2010

We have recently reviewed the market report for Cape Coral-Fort Myers (FL) area reflecting quarter 1 of 2010.  This report gives great insight as to the Cape Coral-Fort Myers market sales and inventory trends.  Below is a synopsis of the report, please refer to the link at the bottom of this page for graphs and more detail for each segment.  we have reports available for other areas in Florida, if you are in need of another area report, please use the contact us feature on our website noting the area of interst and we will forward. 
 
Cape Coral-Fort Myers Housing:
Prices are still down from a year ago, but the trend is improving.  Our Current median home price is 86,400.00.  The local housing price reduction has eliminated all of the equity gained from during the housing boom.  Our FHA limit is still 356,250 with most buyers having access to government backed financing.  Existing home sales are up 35% from a year ago (using 2010Q1 vs. 2009Q1). 
 
Cape Coral-Fort Myers Jobs:
Job losses are a problem and will continue to weigh on demand, however layoffs are declining which could help buyer confidence.  Our local unemployment (13.5%) is worse than the national average (9.7%).  A year ago unemployment locally was 11.3%, nationally it was 9.7%.  Hospitality (16.4%), Government (18.5%) and Transportation/Utility Jobs (21.7%) make up over half of our labor pool.  The Florida economy is weaker than the rest of the nation, but improved modestly form last month. 
 
Cape Coral-Fort Myers New construction:
New construction is down almost 90% below the long term average total of 1057 new 1 unit building permits pulled through March 2010.  Single family construction is on the rise (up 4.7%) suggesting that inventories are beginning to stabilize. 
 
Cape Coral-Fort Myers Affordability:
Montly mortgage payment to income is at 5.1% a slight imporvement from two years ago.  Low home prices along side of historically low mortgage rates are the contributors.  Most recently we have seen the biggest drop, getting us down to 0.8%. 
 
The mortgage market:
Signs of economic strength during the first quarter pressed up on the 10-year Treasury yield, while Fed purchases of mortgage backed securities helped to keep long-term mortgage rates low. The spread between the 30-year fixed rate mortgage and the 10-year Treasury continued to shrink through the first quarter of 2010 as a result. In the first two months of the second quarter, new concerns about domestic employment growth and international banking issues have sent investors clamoring to long-term Treasuries for safety, easing inflation concerns (temporarily) and sending the yield sliding.  Private demand for mortgage backed securities rose in wake of the Treasury's cessation of its mortgage purchase program, muting upward pressure on long-term mortgage rates. Figures for the second quarter, due out in a few months, will likely show a flat or slightly wider spread between the 10-year Treasury and 30-year FRM. The debt crisis in Greece and fear of a contagion have caused long-term Treasury yields to tumble as nervous investors sought a shelter. The decline in the Treasury yield has not been matched by moderating mortgage rates leading to a increase in the spread.
 
Cape Coral-Fort Myers Foreclosures:
There is still a 10% spread between the US average foreclosure rate (4.2%) vs. Florida’s foreclosure rate (14%).  Locally the Fort Myers market has a lower share of subprime loans than the average market, but rising prime mortgages are becoming a problem. 
Prime- Little local increase relative to a year ago, (12.1% vs. 13.1%) current local rate is high (13.1%) compared to the national average (2.7%). 
Subprime- Local foreclosure rate has fallen relative to last year (47.9% vs. 45%), however the current local rate is high given the US average (17.9%).
ALT-A-Relatively little local changes vs. August of last year (41.0% vs. 41.7%).  The current rate for Fort myers is high compared to the up to date US (14.8%). 
 
Cape Coral-Fort Myers Prime foreclosures and delinquencies in Process:
The share of local 60 day delinquencies rose (19.0% a year ago vs. 20.2% today).  This suggests that the 90 day delinquency rate is likely to rise in the near future. 
The share of 90 day delinquent rates in Fort Myers rose from a year ago, (from 17.5% to 19.0%) but by less than the national average (6.5%)
Prime foreclosure and REO rate- rising 60 and 90 day delinquency rates will press up on the local prime foreclosures rates in the near future. 
 
If you would like to View the details of this report, Please click the Following Link Cape Coral-Fort Myers Local Market Report First Quarter 2010
 
This report was Interpreted by Jeremy Sposato Broker/President of J. Roberts & Company.  J. Roberts & Company was established in 2004 and since Jeremy has been a party to over 3500 Residential Real Estate transactions, 500 plus of which have been REO.  If you would like more information on how we use local market data to better serve our clients, please feel free to contact us via our website.  More information on our Agent support services can be found on our website by Clicking Here.
 
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