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As our friends and family from the northern states experience a dramatic change in their fall weather, they start to gravitate south to our warm weather. As they escape the onslaught of blustery weather, we are reminded that our mild climate is one of the many reasons that researchers predict continued growth in this area.

A recent study released by the University of Florida (UF) found that Florida’s growth remains high and continues to show promise for the future, even though growth has moderated from the previous three years. Stan Smith, director of the UF’s Bureau of Economic and Business Research, states that the following factors will continue to drive Florida’s growth: Our mild winters are big draw for midwestern and northern visitors to our area.

“Over the next 20 years as the baby boomers reach retirement age, the probability is high that many of them will want to move to Florida,” he states.

Increase in immigration is contributing to Florida’s overall growth.

Another factor in Florida’s favor for growth is the weakness of the dollar overseas which is driving foreign investment.

The author of TheMortgageReports.com, Dan Green, reports a tremendous growth in the number of inquiries, as much as “Five to 10 times than it was a year ago”, for potential buyers outside of the U.S.

Other factors to take into consideration for long term growth in our area are the pent up demand of buyers, the recent record sales price on Marco Island (for $9 million), and the historical long term price appreciation.

When you compare the number of properties on the market on Marco Island to the same time in 2006, Marco Island is showing a drop of 5.68 percent. In a year over year sales comparison, Marco Island showed a 3.5 percent decrease in sales.

There are two areas of the market that showed a significant increase in a year over year sales comparison — water indirect homes (up 34.8 percent) and condos in the $500,000 to $1,000,000 price range (up 10.8 percent).

As more of our winter friends flock to the area, and sidelined buyers choose their dream homes in paradise, the local market will feel the implications of growth in our area.

As we experience increased sales, purchasing power and selection will diminish for the “sidelined buyer”.

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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.