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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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Every year people from across the world choose to reside in Marco Island as a primary residence, winter destination, or for investment.

Are we impacted by the housing slowdown reported in the news? Yes, the reports do have an impact on our local market and can result in apprehension from our feeder markets.

Why then do the economists predict Marco Island as a good long-term investment?

There are many interesting facets to Marco Island, from the beautiful crescent-shaped beach, the outstanding fishing, the beautiful weather, less congestion than many areas of Southwest Florida, the limited supply of growth and quality lifestyle.

In many areas of Florida, cities and counties are sprawling out farther from the coast or city center. Take, for example, Collier County’s tremendous expansion toward Immokalee.

On Marco Island, there is a limited number of homesites, a fact that will help maintain the quality lifestyle, making Marco Island a desirable, quality place to live.

The best summarization of the long-term real estate market was stated by Josh Spencer, an analyst with T. Rowe Price Group Inc. when he stated, “Land in Southwest Florida is irreplaceable. It doesn’t matter that the market is weak now. If you have waterfront property in Naples, it’s like having office space in midtown Manhattan.”

Other factors for long-term growth stem from the following:

Natalie Kirstein

1.Retiring Baby Boomer population;

2.Strength of the international feeder market;

3.Tax advantages of Florida.

The largest determinant of growth stems from the Baby Boomer population. With the oldest of 78 million Baby Boomers starting to enter retirement, they are beginning to spend their winter months in a desirable, quality area such as Collier County. Unlike their Depression-era parents, Baby Boomers stand to inherit, or have inherited, a nice nest egg.

The quality lifestyle of Marco Island and Southwest Florida provides the ideal quality destination for a retiring Baby Boomer. To get a feel for the local market, here is a seven-month comparison matching October 2006 to April 2007 against October 2005 to April 2006.

While we don’t expect to see another real estate boom like that of recent years, we are experiencing positive growth in the Marco Island real estate market.

When comparing Marco Island sales from October 2006 to April 2007 to the same time period of the previous year (October 2005 to April 2006), total sales have increased by 3.9 percent, pending sales increased by 22 percent, and new listings have increased a mere 1.07 percent.

For single-family homes during this seven month time period comparison, there is a 6.5 percent increase in homes that sold and 18.2 percent increase in pending sales.

Water indirect homes experienced the largest increase in sales in the seven-month comparison with a 39.5 percent increase in sales. The sales prices during this seven- month period range from the low end at $625,000 to $1,650,000. The average sales price for a water indirect home is $1,063,224.

A recent water indirect home that sold can be found off of Landmark Bay. This elegantly updated home, originally built in 1985, features more than 3,500 square feet of living area. The home is situated on the tip lot, with 169 feet of water frontage, offering beautiful views of Landmark Bay and walking distance to the beach.

This elegant home features cathedral ceilings, tile and bamboo flooring, skylights, Butler’s Pantry, imported Italian kitchen cabinets, granite countertops, gas and electric stovetop, pasta faucet, pool with spillover spa, and dock with lift. This home recently sold for $1,650,000.

For the seven-month comparison, water direct homes showed a decrease in home sales. The average sales price for October 2006 to April 2007 is $1,972,971.

A recent sale can be found in the Tigertail area. This charming Old Florida-style home, built in 1993, features more than 2,400 square feet of living area with three bedrooms and two bathrooms. The home boasts a spacious master suite encompassing the entire second floor. In character with the Old Florida-style home, a tin roof gazebo is situated at the end of the dock.

The home includes many possibilities for the garage area which is large enough to hold four cars or set up a large hobby area.

Inland homes showed a slight decrease in sales of 4.4 percent for the seven-month comparison. The average sale price for October 2006 to April 2007 is $476,042.

A recent inland home sale can be found on Bald Eagle Drive. This home, built in 2005, features just less than 2,000 square feet of living area. It features an open floor plan with granite countertops, coffered ceiling in the kitchen, crown molding, pavers, and pool with waterfall. This home sold for $640,000.

When you compare October 2005 - February 2006 against October 2006 – February 2007 sales, condos have experienced a 11.9 percent increase in sales.

For a detailed look at the condo market, look for my next article scheduled to appear in the Marco Eagle on Friday, May 25.

When you review the data for the single- family homes (plus 6.5 percent) and condos (11.9%) growth in closed sales, you wonder how overall sales only rose a mere 3.9 percent.

Unfortunately, lot sales negatively impact the overall sales statistics with a decrease in sales, down 13.5 percent for the seven-month time comparison.

What impacts the negative lot sales on Marco Island at this time? Some experts believe there are many factors, from the cost of building new construction and the concerns over recent reports of a local construction company having incomplete jobs with potential lawsuits.

As aspects of the real estate market show signs of improvement, don’t miss your opportunity to purchase your dream home in paradise before you find price appreciation forces you to purchase less for your dollar and your selection dwindles.

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Natalie Kirstein works for Premier Properties of Southwest Florida, Inc., phone (239) 784-0491.