On the beautiful beaches and waterways of Marco Island, the market trends show promising growth. This unique island offers a vast array of lifestyle choices from the gorgeous crescent shape beach, boating vistas, the amenity rich community of Hideaway Beach, to the private, exclusive community of Key Marco. Marco Island is a destination difficult to duplicate in Florida.

While we enjoy our gorgeous winter weather frolicking in the sun or playing outdoor sports, many of our northern counterparts endure the trials of cold weather, snow, and ice. This desirable lifestyle, coupled with the tax advantages of Florida residency, are a draw for the 78 million retiring Baby Boomers. These factors are creating pent up demand for our local market.

According to Dr. Yun, Director of Research and Chief Economist for the National Association of Realtors, buyers have delayed entry into our market “due to lack of confidence, not necessarily due to lack of financial wherewithal. But with pent up demand accumulating, its just a matter of time before it’s unleashed onto the market.” Dr. Yun also states that “financial wherewithal” has grown significantly with the Dow Jones Industrial Average hovering at record highs.

Our desirable lifestyle and favorable currency exchange rates are also a draw for European and Canadian investors entering our marketplace. As the U.S. Dollar slumps to all-time lows against the Euro, many English and German buyers are flocking to our area to scoop up properties.

In October 2004, $1,000,000 Euro would give a European buyer $1,243,800 U.S. of purchasing power. As of Oct. 1, $1,000,000 Euro would give a European buyer an estimated $1,423,899 U.S. of purchasing power in our market. In just over three years, the devaluation of the U.S. dollar has given our European counterparts an increase of 18 percent in purchasing power in our marketplace.

Marco Island is already starting to experience signs of recovery in the marketplace. While we don’t expect a robust recovery, we are currently enjoying gradual, yet sustained growth.

Growth in the real estate market can be found in single family homes which experienced a 19 percent growth rate (sales plus pending contracts) in a year over year comparison and condos reflecting a 7 percent growth rate. Also, posting positive news is a decline in available listings by 2.77 percent from the same time period of 2006.

Surprisingly, water indirect homes post the largest growth with a 48 percent increase in year over year comparisons. Water indirect homes are water front homes that have boat size limitations due to bridge access to reach the Ten Thousand Islands and Gulf of Mexico. Of the water indirect homes that are pending or sold in the past year, 43 percent are newer homes built after 1999.

Water direct homes posted a 3 percent gain in overall sales growth in a year over year sales comparisons. Water direct homes in the Estates showed promising growth with almost double the number of sales in year over year sales comparisons. This past summer, Marco Island experienced its overall highest reported sale at $8,400,000 for a water direct home in the Estates area.

On the flip side, inland homes in the Estates and Hideaway Beach showed a drop in sales of 17 percent; whereas, inland homes, not located in Hideaway and the Estates, showed a gain of 10 percent.

Where do we go from here? As a seller, if you aren’t willing to price your property competitively in this market, hold off until prices appreciate to your selling price. Long term price appreciation has been a historical constant in the Marco Island Real Estate Market. Furthermore, this approach allows buyers to focus on a realistic inventory and quickly find their home on Marco Island.

As a buyer, enjoy the available selection of homes before they diminish further. As more buyers enter the marketplace, the availability and selection will continue to diminish. Don’t miss you chance to purchase your dream home in paradise!

Look for my upcoming article on the Real Estate Market scheduled for Oct. 19. To receive my article in your inbox, please send an e-mail to with “Marco Island Real Estate” in the subject line.

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When buying or selling real estate on Marco Island, contact Natalie Kirstein, MBA, Premier Properties of SW FL, Inc., office 239-642-2222, direct 239-784-0491, or e-mail: NatalieK@premiermail.net. Natalie can be found at Premier Properties Office in the Esplanade on Marco Island.

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