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More Real Estate

• Real estate sales: September 3, 2008
• Market Update: Marco’s sales up from previous year
• Real estate sales: August 27, 2008

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The real estate market on Marco Island is moving at a faster pace now. We see that the best view and value priced properties come off of the market at an increased rate. This trend continues in what is now considered the off-season as Buyers return for post-season buying sprees. This thought was cemented at a recent Marco Island Board of Realtors luncheon where many realtors and real estate related businesses discussed the increased activity in comparison to 2007.

One writer singing the praises for the Florida real estate market is Janet Morrissey, Investment News. Morrissey recently wrote an article titled “Economic Turmoil means Opportunity for many real estate bargain hunters.” In her article Morrissey found several real estate executives that are bullish on real estate especially in the Florida area. Tom Kunz, President and CEO of Century 21 Real Estate LLC, sees a huge opportunity for buyers who have cash in the real estate market. Judy Reeves, COO of NRT LLC, the largest residential broker firm in the U.S., “is bullish on Florida in particular.”

Furthermore, a recent article in the Wall Street Journal, stated that a recent survey of “wealthy” people, discretionary income more than $500,000 annually, found that 77 percent believe that the current market is a good time to buy. In this category, 40 percent planned to do so this year. The belief that now is the time to buy is also widely held from the upper middle class, 67 percent believe it is the time to buy real estate, to the affluent and super-affluent, 72 percent believe there are buying opportunities in today’s marketplace.

The change in perception is evident on Marco Island. Consider that inventory levels through April 30, 2008, dropped over 11.3 percent, in comparison to month-end April 2007. Next pending sales, or under contract, surged in April 2008 by 46 percent in comparison to April 2007. One Realtor showing waterfront homes last week had 3 of the properties go pending in a matter of days after her showings. Overall, single family homes are up by 14.7 percent for pending and closed sales in comparison the first four months of 2007. Water direct homes offer the largest growth in the single family home market with a 40 percent increase in closed sales in comparison to the first four months of 2007.

The growth in condos is also showing signs of strength. Since the start of the year, Marco Island has seen pending and closed sales for condos increase by 13.6 percent over 2007. Parts of this market show strong statistics with active listings versus pending and closed sales. Refer to the chart.

Unfortunately, lots continue to remain the sluggish part of the market.

One aspect of the market which is also gaining strength, and is a contributing factor to our market movement, is trades. As more Buyers desire the move to their dream property, to or from the sand, water, or golf, this increasingly takes available inventory off of the books. While trades can provide a quick solution for trading participants, both parties must be realistic on the value of all properties involved in the trade to make it a successful transaction.

While inventory remains at higher than desired levels, the surge in pending sales and decreased inventory bodes well for buyers entering the market at this time. As this trend continues, new Buyers in the marketplace will only continue to move the market up the curve further away from its low point.

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Natalie Kirstein, MBA, Realtor, works for Premier Properties of Southwest Florida Inc at The Esplanade. She can be contacted at NatalieK@premiermail.net or 642-2222.