Cape Coral has a gajillion houses for sale, why? (real estate market, rental)

[Kassad]

So I did a quick search on zillow for cape coral houses for sale ($300k-$400k) and the map looks like a frickin' christmas tree. What gives, why so many houses for sale?

I'm looking to purchase a house for around $400k, give or take that I will rent out in the short term, then retire in. I know I'm not going to get the perfect 1% rent like the $100k houses get, but that being said I don't want to worry about vacancy. I'm also looking at Jax area, but I might prefer the gulf coast as the water tends to be more calm.

Anyway, when I looked at Cape Coral I couldn't believe rhow many houses there are for sale? Is there something I don't know? Is the rental market this saturated?

[LifeIsGood01]

You can find a really nice home for $190K, that's why people can't sell home for over $300K here.

[transplant4651]

Because your average person/family can't afford $$$$$ them.

[jnpittman9]

There is about 9 months of inventory with that price range in Cape Coral. The average home price March in Cape Coral was $223,208. So in your case, its good that there are more houses to choose from and with the home price and your budget you will be able to get more for your money compared to other area markets.

[sunshinewi]

The higher priced homes tend to be on canals or canal streets. If you dont care about living on a canal, you can get a very nice home for 200,000. These homes fly off the market.

[Mr Cape Coral]

The consumer needs to understand the information they get from the big real estate websites. Sites like zillow use an AVM Automated Valuation Model. This is a computer software program that combines data ONLY to calculate value.
One major concern is they are not timely.not accurate. It is not uncommon at all for them to list properties that sold months ago or even longer.
They will show homes for sale that are not for sale. They just list all properties they can get any information on.
The value they give of a property is nothing you can take to the bank.
They assume a property is in average condition without any inspection of it.
They make no adjustments if a house has had major renovation or upgrades.
They make no adjustment for lot size or location.
Many people think they are viewing the MLS, but this is simply not true.
I have seen property values $75,000 to $100,000 high and the same amounts as a below actual value.
The consumer is left to believe they have the latest and best information on properties that are available and the value of them.
Most of the time this data leads the consumer to make unfounded conclusions of a local real estate market.