Cape Coral ranks 5th in the nation for foreclosure filings

CAPE CORAL, Fla. (WINK)—Cape Coral had the fifth-highest number of foreclosure filings across the country last month, according to real-estate data analytics firm ATTOM.

Mortgage broker Adam Bartomeo says he's not surprised by the numbers. He describes the Cape Coral housing market as a cycle of boom and bust.

"What goes up must come down, and we're there," Bartomeo said.

During the pandemic, Southwest Florida real estate was red hot. Now, the market has cooled significantly as prices have become less sustainable for many homeowners.

"The prices couldn't stay that way, and people can't afford those mortgages," Bartomeo said.

Bartomeo believes higher taxes, insurance rates and unemployment are to blame as some people struggle to afford mortgage payments. Realtor Karen Borrelli says the trend doesn't come as a shock.

"Home ownership has become more and more unaffordable," Borrelli said.

ATTOM says nationwide, default notices, scheduled auctions and bank repossessions are up 18% compared to the same time last year. Despite the foreclosure numbers, Borrelli says Cape Coral remains attractive to buyers.

"People are still flocking here because of our 400 miles of waterways," Borrelli said.

More foreclosures could mean more deals for buyers. Bartomeo says some banks will offer up to a $100,000 discount on foreclosed properties, meaning a bust could soon turn into a boom.

"It's a fantastic time to buy when that's happening," Bartomeo said.

Bartomeo points out that Lee County home prices have started to stabilize from the pandemic and inventory is starting to decrease. He believes home prices will start to increase over the next year.