Category Archives: Market News

MARCO ISLAND REAL ESTATE

MARCO ISLAND REAL ESTATE SUMMARY DECEMBER 2015

MLS statistics, released by the Marco Island Area Association of Realtors® for Marco Island only properties compare November 2015 to November 2014. Inventory decreased 10.02% from a year ago for all property types while at the same time the median sale price for all property types jumped 18.87% from $408,000 to $485,000

• The number of new single family listings that came on the market in November 2015 v. November 2014 increased 68.00% (84 v. 50). The total number of single family properties active on the market in the year-to-year comparison remained virtually unchanged at 1.03% (293 v. 290). The median sale price for closed single family homes increased 31.85% ($890,000 v. $675,000). Total sold dollar volume for single family homes increased in November 2015 to $15,606,200 from $12,645,250 in November 2014, a 23.42% increase.

• In regard to condo activity, number of new listings that came on the market this November v. last November increased 8.97% (85 v.78).  Total number of condos on the market from last year decreased 18.24% (269 v. 329). The median sale price for condos increased 39.62% ($370,000 v. $265,000).  Total sold dollar volume for multi-family increased 20.93% from $13,020,100 in November 2014 to $15,744,900 in November 2015.

• Number of new lots coming on the market in November 2015 v. November 2014 increased 22.58% (38 v. 31). Total number of lots active on the market decreased 7.45% (298 v. 322) from last year.  Median sale price decreased 4.63% ($324,500 v. $340,250). Total sold dollar volume increased 257.81% ($4,224,000 v. $1,180,500).

(Median sale price means 50% of sales were above and 50% of sales were below.)

• Number of pendings for all property types is down 26.61%.  Single family pendings in the comparison down 51.22% (20 v. 41); Lots up 14.29% (16 v. 14); and multi-family down 20.90% (53 v. 67).  

• Number of condos closed in the comparison decreased 3.23% (30 v. 31).  Number of single family homes closed decreased 10.53% (17 v.19) in the November-to-November comparison while number of lots closed increased 150.00% (10 v. 4) in the same comparison.  

MARCO REAL ESTATE IS HOT HOT HOT!!!

It is no secret that our local real estate markets have recently experienced dramatic and almost unrealistic increases, rebounding from the Great Recession. These extraordinary swings, have some so-called experts predicting another bust or bubble.  George Percel, managing broker of Marco’s John R. Wood’s real estate office says it best. In his commentary in response to a local financial advisor’s negative real estate analysis George states that “the financial expert’s perspective of our local real estate market is uninformed and misleading.” It is another attempt to scare real estate buyers to move to the exhilaration of the gambling den of the stock, bond and hedge fund markets.
 
From the Realtor’s perspective the last boom cycle, which brought about the bust of 2006 was principally engineered by the financial sector and its eagerness, some would say wanton greed, to profit through diabolical schemes designed in New York and Washington. After the dot-com bust, money fled the stock and futures markets to real estate. Traders came to look at real estate as if it was a commodity. Flips were the modus operandi of the day in late 2003 -2005. Money was craving to find a new source of high yield. Thus were born new investment opportunities like REITs, bundled mortgages, and hedge funds. Constantly creating new arrangements to profit from politicians in Washington.  These same people fashioned the dot-com disaster.
 
One big difference in today’s real estate market is that it is driven by demand. Seventy-nine percent of the 196 closed sales on Marco Island during the first two months of this year were purchased with cash, not with mortgages. There are no negative amortizing loans, no 100 percent interest only loans, and the loan originators are not paid to approve a loan to anyone who could fog a mirror, as was the case during the last absurd manipulated boom.
George Percel suggests that this financial advisor’s misguided view is driven by the fact that many of his customers are now investing in the long-term stability of real estate and not the volatility of the financial markets. Over time, real estate continues to provide a substantially higher rate of return than many Wall Street investments. Welcome back market stability. Today’s buyers are people who will be holding and enjoying the properties they purchase. Today’s real estate investor is not looking for the get-rich-quick opportunity.
People love our diamond in the everglades, Marco Island. We are no longer the secluded secret Island on the West coast of Florida. In 2014, Marco Island was named the #1 island in the United States by the world’s largest travel site, TripAdvisor. The site calls Marco Island “the jewel of Florida’s Ten Thousand
Islands” and also ranked Marco #4 in the entire world! This has given our Island worldwide attention and fame. The Europeans traditionally keep us very busy during our slower paced summer and we are expecting them to continue buying our desirable real estate in spite of the stronger dollar.

MARCO ISLAND CURRENT REAL ESTATE MARKET

Our Local Market
The three basic real estate resale markets on Marco Island are: condominiums, homes and vacant land. During recoveries in our area, the condominium sales lead the way. Beach front (BE) condos are followed by Gulf front, bay front, canal and inland condos respectively.
 
When we analyze the various single family home market appreciations, the water direct (WD) access homes always lead the way followed by the water in-direct (WI) homes and then the inland (IN) homes. The vacant lot
appreciation follows the same sequence as the home market. The following chart will show beginning price points and availability of resale properties on Marco Island today in 2015.
 
Some of Your Best Buys for Sale Today
 
WD    Pool Homes                 Only   5           $499 – $699
WI     3/2 Pool Homes             Only 10           $489 – $662
IN      3/2 Pool Homes            Only   8           $300 – $500
BE     2/2 Condos                           Only 18          $300 – $500
WD    2/2 Condos w/ Dock             Only 24          $250 – $400
WI      2/2 Condos w/ Dock            Only   9           $379 – $429
IN       2/2 Condos w/ Dock            Only 27           $135 – $300
WD    100’ x 110’ Lots            Only   6   $399 – $499
WI      80’ x 110’ Lots             Only 26           $299 – $399
IN       80’ x 110’ Lots             Only 34           $  75 – $150
 
Marco Island is rapidly approaching build-out. We are on the threshold of greatness. Your window of opportunity for the “best buys” in all property categories is shrinking fast. The Island is having a remarkable comeback and the consumer confidence for Real Estate purchases in our area is consistently growing.
Don’t sit on the sidelines and pass up on this golden opportunity. If you plan on making our area your future home and lifestyle, now is the time!

MARCO ISLAND REAL ESTATE

MLS statistics released by the Marco Island Area Association of Realtors for Marco Island-only properties compare July 2015 to July 2014. While inventory decreased 12.62% from a year ago for all property types, volume sold jumped from $44,762,374 in July 2014 to $51,842,400 in July 2015, a 15.82% increase.

• The number of new single family listings that came on the market in July 2015 v. July 2014 decreased a slight 2.22% (44 v. 45). However, the total number of single family properties active on the market decreased 10.54% (263 v. 294). The average sale price decreased 2.57% ($809,209 v. $830,596). The median sale price for closed single family homes decreased 25.00% ($660,000 v. $880,000). Total sold dollar volume for single family homes decreased in July 2015 to $18,611,800 from $24,087,274 in July 2014, a 22.73% decrease.

• In regard to condo activity, number of new listings that came on the market this July v. last July increased 16.13% (36 v.31). However, total number of condos on the market from last year decreased 23.58% (243 v. 318). The average sale price for condos was up 55.92% ($639,550 vs. $410,178). The median sale price for condos was also up 34.35% ($440,000 v. $327,500). Total sold dollar volume for multi-family increased a whopping 79.31% from $16,407,100 in July 2014 to $29,419,300 in July 2015.

• Number of new lots coming on the market in July 2015 v. July 2014 was unchanged year-to-year at 20. Total number of lots active on the market increased less than one percent at 0.68% (297 v. 295) from last year. Average sale price was down 11.85% ($317,608 v. $360,300) while median sale price decreased 15.04% ($305,000 v. $359,000). However, total sold dollar volume increased 5.78% ($3,811,300 v. $3,603,000).

(Average sale price is total sales in dollars divided by the number of sales and median sale price means 50% of sales were above and 50% of sales were below.)

• Number of pendings for all property types is down 44.12%. Single family pendings in the comparison down 55.38% (29 v. 65); Lots up 5.26% (20 v. 19); and multi-family down 41.33% (44 v. 75).

• Number of condos closed in the comparison increased 15.00% (46 v. 40). Number of single family homes closed is down 20.69% (23 v.29) in the July-to-July comparison while number of lots closed increased 20.00% (12 v. 10) in the same comparison.

• For all property types, average sale price was up 14.39% ($640,030 v. $559,530) while median sale price was up 15.15% ($475,000 v. $412,500).

DISCOVER SUNNY MARCO ISLAND

Discover the Beauty and Wonder of Sunny Marco Island

Where else can you find a 4 by 6 mile tropical island with 4 ½ miles of sun-washed beaches, polka-dotted with seashells, abundant waterways and bays, emerald Gulf waters and splendid sunsets? Marco Island is a subtropical island paradise in the good old U.S.A., with the security and convenience of two bridges to the mainland of southwest Florida.

Sunny Marco Island is one of the most beautiful and desirable resort communities on the North American continent. This one of a kind, self-contained, full-service, easily accessible, diverse tropical community is nestled in one of the most dynamic, ecologically spectacular nature preserves in the world. As the farthest southernmost beach community on the west coast of Florida, we enjoy immediate access to things others can only dream of seeing. Imagine wide sugar-fine beaches and thousands of nearby uninhabited islands dancing with snowy egrets, great blue herons and comical pelicans. To the east and south stretches the Everglades National Park, a World Heritage Site.

Just across the bridge to the north is Naples, with ritzy resorts, elegant art galleries, championship golf courses, upscale restaurants and shopping. Marco Island, sets between untouched Florida and refined Naples, and is a blend of both. Not only is Marco Island a water wonderland for boating, fishing, and magnificent beaches, it also boasts outstanding resorts, bountiful restaurants and shopping, a flourishing cultural community, and more than 100 varied social clubs and charitable organizations. There is something for everyone. It’s almost more fun in the sun than time allows!

Discover the Sunny Island Lifestyle

Marco Islanders choose to live here, and are thrilled by the magical view of the island every time they cross the bridge. Our community of dreamers chooses to live life to its fullest. We offer friendly small-town charm with big city amenities, plus the sophistication of Naples right next door. The island is about 80 percent waterfront property with elevations to 50 feet, the highest in southwest Florida. Marco Island offers beachfront condos and homes, waterfront properties for boaters, charming walk-to-the beach homes and condos, very private gated developments, homes on the golf course, and many inland choices. Nothing on the island is more than 10 minutes from the World Famous Sunny Beach!

Marco Island 3rd quarter market update

Waterfront home sales, specifically water indirect homes were the strongest segment of the market with 25 more units sold compared to the same period in 2013.  Inland homes sales were also strong with 13 more sales this year compared to last.  The average beachfront condo price is up 12% for the past 12 months but off 6% for the quarter. Lot prices continue to rise with the average water indirect lot up 58% over the past 12 months, with water direct lots up 18% and inland lots up 16% over the same period.  The increase in lot prices has affected sales volumes with current year units trailing last year by 21. Overall, Inventory levels are down and prices are moving higher as the selection of properties dwindles.

Marco Island Inventory levels are down 6% from this time last year and are now 70% lower than in March 2007 with only 844 properties currently for sale on the island; 263 homes, 294 condos, and 287 lots.  Condo inventory is down 18% from this time last year, while the inventory of homes is down 13% and lot inventory is up 21%. The total number of pending units is down 25% compared to last year with 105 properties under contract verses 140 on October  1, 2013.  Only 7 of these pending sales are either foreclosures or short sales which is now only 7% of all pending sales. There were 70 closings of Marco Island properties in the last month and 52 net new pending sales accounting for the decrease in total pending units from 123 last month to 105 currently.

CURRENT MARCO ISLAND MLS STATISTICS

Multiple Listing Service statistics released by the Marco Island Area Association of Realtors for Marco Island-only properties comparing January-September to the same period a year ago show dollar volume of Marco Island real estate sold increased 2.02 percent from $533,322,580 (2013) to $544,120,403 (2014).

Single-family

• Home Activity: Fewer new single-family homes were listed on the market January through September versus the same months in 2013 by 3.9 percent (467 vs. 486).

• The number of single-family homes closed since January shows an increase of 11.38 percent (362 vs. 325) from the same period in 2013 while the pending sales of single-family home properties in the comparison increased significantly by 27.09 percent (638 vs. 502).

• The average sale price (total sales in dollars divided by the number of sales) and median sale price (50 percent of sales were above and 50 percent of sales were below) for closed single-family homes was down a slight 3.59 percent ($735,562 vs. $763,014). The median sale price was up 7.63 percent ($613,500 vs. $570,000).

• Total dollar volume sold for single-family homes was $266,273,589 for January-September, up 7.37 percent from the same time last year ($247,979,590).

Condos

• Condominium activity: The number of new condo listings year-to-date for 2014 compared year-to-date 2013 was virtually unchanged, down 0.92 percent (538 vs. 543). The number of pending sales in the condo category increased by 22.92 percent in the same comparison (740 vs. 602). The number of condos closed in the comparison is up 2 percent (457 vs. 448).

• The average sale price is up 4 percent ($486,481 in 2014 vs. $467,751 in 2013) while median sales price is up 11.95 percent ($370,000 in 2014 vs. $330,500 in 2013).

• Total dollar volume sold for condominiums year-to-date for 2014 was $222,321,614 vs. $209,552,410 in 2013, up 6.09 percent.

Lots

• Lot activity: The number of new lots listed in 2014 increased 11.62 percent from 2013 (240 vs. 215). The number of lots pending decreased 11.61 percent (175 vs. 198). The number of closed sales of lots decreased by 16.19 percent (119 vs. 142). The average sale price increased 6.86 percent ($413,504 in 2014 vs. $386,950 in 2013). The median sale price increased 0.4 percent ($251,000 in 2014 vs. $250,000 in 2013).

• Total dollar volume sold decreased 10.44 percent ($49,206,950 in 2014 vs. $54,946,927 in 2013).

For all properties, average sale price is up 0.41 percent ($572,156 in 2014 vs. $569,789 in 2013) and median sale price is up 16.19 percent ($443,000 in 2014 vs. $381,250 in 2013).

We continue to see a strong real estate market on Marco Island and I believe it will continue through season.