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More Real Estate

• Real estate sales: August 27, 2008
• Existing single-family home sales up 80 percent in Fort Myers/Cape Coral
• Home at risk of demolition on Marco will be saved

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Many visitors to Southwest Florida are enjoying the wonderful amenities and warm climate in our area. Our beautiful beaches are busy with residents and visitors collecting seashells, basking in the Florida sun, and boating in our waters. Others are taking to the tennis court and world class golf courses in our area. The sights and sounds are abundant at this time of year where bands can be found at several outdoor venues and fine dining is difficult to ascertain without a reservation.

As we look at the real estate market figures, the inventory levels have decreased from the February 2007 by almost 10 percent. For February 2008, we experienced a surge in pending sales and closed sales in comparison to February 2007. Pending sales increased by 21.43 percent and closed sales increased by 19.44 percent. The largest area of growth for pending and closed sales for February was the single family home market where the pending sales increased by over 62 percent and closed sales increased by over 54 percent in comparison to February 2007.

Condos experienced no change in closed sales and a 25 percent increase in pending sales for the month. Lots continue to lag behind in pending sales.

The Naples Daily News reported on March 7, 2008, that many real estate companies in the area have reported increased showings. In some cases as much as double the number of showings in comparison to the same time period in 2007.

Will this increased buying trend continue? Some buyers plan to leave in the near term and return for a post season buying spree, some buyers are making offers prior to their departure in hopes of acquiring their home for next year, and a large segment of buyer are still sitting on the sidelines. Some buyers have been told by the financial advisors to begin their property search because the advisor believes that now is the time to start the search process.

We have experienced an increase in travelers this year from Canada and European countries due to the favorable exchange rates caused by the devaluation of the U.S. Dollar. To enhance the accessibility of Southwest Florida to international travelers, Southwest Florida International Airport continues to offer incentive programs to carriers that establish flights to Fort Myers. As accessibility to this airport improves, we can anticipate further growth from domestic and international travelers which should equate to more buyers.

With the devaluation of the dollar, there is a perception that international buyers will purchase properties at higher prices. As sophisticated and savvy international buyers and investors increase their visibility in our marketplace, they are looking for the best value properties too. Below is a re-iteration of a hypothetical exchange rate conversion scenario to show the impact and affordability of a recent sale for an international buyer. Many readers have found the following scenario enlightening about the change in the U.S. Dollar.

A water indirect home sold for $389,500 U.S. in July 2000. A buyer would need to convert 409,229 euros (EUR) for the purchase price of this home. This home sold in February 2008 for $620,000 U.S.. In February 2008, a foreign buyer would need to convert 412,325 euros (EUR) for the purchase of this home.

In U.S. Dollars, there is a net appreciation of $230,500 (U.S.).

For a buyer that utilizes a euro based currency, the net appreciation is only $3096 (U.S.).

Lastly, our beachfront and waterfront properties offer a precious commodity not readily found in many areas of the country. Where can you duplicate the Marco Island lifestyle, climate, and beauty in other areas of Florida and U.S.?

Today, buyers can enjoy the selection of inventory and negotiating power. As inventory levels continue to diminish, so will your chance to “pick the cream of the crop” at their lowest price levels.

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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.