Distressed market moving on in Lee

Investors chasing deals on foreclosed homes in Lee County may discover that the market has moved on.

The Southwest Florida Real Estate Investors Association recently found that a majority of transactions today are traditional sales, not foreclosures or short sales.

“The one thing you have to know is the distressed market does not matter anymore,” says Jeffrey Tumbarello, executive director of the association and a senior associate with Steelbridge Realty.

Tumbarello's research showed the share of distressed home sales dropped to about a quarter of the total transactions so far this year. As a result, median home prices have risen 29% to date through February 29.

At a recent meeting of the association, real estate agents agreed that foreclosures are now in limited supply. For example, one agent recently calculated that only 5% of the 1,800 home-for-sale listings in Cape Coral are bank-owned properties.

Tumbarello says he's seen no evidence that another significant wave of foreclosures is due to overwhelm the market. “When you see leverage in this market, things will go wild,” he says.