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More Real Estate

• Real estate sales: October 1, 2008
• Real estate sales: September 23, 2008
• Market Update: Slow times for real estate arrive in Marco

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Market improvement has been reported on a local and state-wide level in recent months. For Marco Island, May showed a spike many Realtors have anticipated since late fall.

With 98 closed sales in May 2008, this represented a jump of significant proportion over the previous month by 66 percent. As indicated on the accompanying chart, the sales levels are consistent with May 2005. Furthermore, as of June 12, 2008, pending and closed sales are on target to continue the positive sales growth with 30 pending sales and 25 closed sales (6/1/08-6/12/08).

While this transition is more rapid on Marco Island versus other areas of the local and state level, the changes in the market are far reaching. The month of April improved for many Realtors across the state of Florida. According the Florida Association of Realtors (FAR), there was an increase in sales from March 2008 to April 2008. FAR also found Realtors across the state are experiencing increased Buyer interest, showings, and pending sales.

This sentiment was also felt in Naples where the Naples Area Board of Realtors (NABOR) reported that April 2008 home sales increased by 6 percent and pending homes sales increased 25 percent when compared to April 2007. May 2008 statistics have not been reported by NABOR yet but initial reports show continued improvement.

Below summarizes the positive news in the Marco Island real estate market.

-- May 2008 showed a 66 percent increase in closed sales over April 2008.

-- May 2008 showed a 53 percent increase in closed sales over May 2007.

-- May 2008 pending sales were up 8.6 percent over May 2007.

-- Inventory down by 12.6 percent in comparison to the end of May 2007.

-- Closed sales for single family homes were up by 59 percent in comparison the same time in 2007.

-- Condo closed sales were up by over 45 percent from May 2007.

For pending and closed single family home sales on Marco Island (reported on 6/6/08):

-- 33 percent of these sales were water direct homes

-- The predominant share of water direct homes were homes with a dock (84 percent).

-- 35 percent were water indirect homes.

-- 86 percent of the sales had a dock.

For condos, sales are moving in a positive direction and, in specific condos, the most desirable units are non-existent. Take for example, Madeira where there were nine condos sales since the beginning of the year and two units are pending at this time. One stack considered by some as the most desirable, the “04” or “C” stack, no longer has any inventory on the market. This stack offers panoramic of Marco Island’s crescent shaped beach. One unit in this stack at Madeira went pending in mid-March and the last two units went pending in early May. Another condo which shows impressive sales statistics is the Princess where there are no condos available for sale and five closed sales since the first of the year. Another condo with activity is Tampico with three active listings, one pending sale, and four closed sale since the start of the year.

What differentiates Marco Island from other areas of Florida with its more improved sales statistics? It might be one or all of the following factors:

-- Fixed island land mass without “sprawling” growth opportunities.

-- Very Limited opportunity for high density growth.

-- Near term addition to inventory will not stem from developer builds such as new communities and high-rise condos.

-- Desirable lifestyle with limited number of waterfront and beachfront properties and no opportunity to mass produce the inventory in the future.

Is there really a silver lining in the real estate market? Across the state of Florida, the positive news of a turnaround is being reported more frequently. Consider that a private portfolio in London suggested buying Homebuilding Stocks in January. Since that time, these stocks are up 50 percent. Some consider that homebuilder share prices are an indication of the health of the real estate economy.

As the market begins its move up the curve, waiting buyers are missing their chance to purchase the most desirable properties at the best value prices. Joe McAuliffe, an attorney and adviser in the Florida real estate market, recently stated “Given the availability of very low fixed rates, an abundance of homes listed for sale and motivated sellers who have dropped their prices substantially, there may never in our lifetime, be a better time to buy.”

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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.