Cape Coral Real Estate : Vacant Land in Cape Coral

I have been receiving many inquiries as to the local vacant land value here in Cape Coral, Florida.

Here are the 3 top questions I've received & my responses below as well.

1Q.  Why is my taxable value so high in comparison to current market value?

2Q.  When will the market go back up?

3Q.  Should I sell or should I wait?

1A.  The values for the taxes are for 2005. In 2005 many off water lots sold up to $100,000. We pay taxes in arrears so the bill you have now is for 2005 & the one you received in 2005 was for 2004. The one you'll get at the end of this year will be for 2006 values.

2A.  We had many speculative investors here buying up the lots which drove them up to these unsustainable highs. Now the market has adjusted downward more in line with where the true values should/would have been had that have not happened. Just in 2002-2003 for example these same vacant lots were selling for $5-15,000.  For about 20 years prior to that they were only $1000-2,000/each.  I feel like for the next few years we will see the prices creep back up possibly 3-5% a year. Prices are still fluctuating down a bit but I think we're getting pretty close to stabilizing.

3A.  Depending on your situation, it may make sense to sell or hold. I know this may not answer your specific question but that's it, it's specific to you.