For the third consecutive month in a row, Marco Island surpassed sales from the previous year. Overall, for the last three months (May, June, July), Marco Island reported a 38 percent increase in sales. Furthermore, for July 2008, pending sales were up by 20 percent and inventory dropped by 10 percent in a year-over-year comparison.

Continuing to weigh down the inventory numbers are the sellers holding onto higher than market pricing with confidence that the market will return to their higher price.

While some areas of Marco Island continue to experience higher inventory levels, other areas of Marco Island are experiencing robust showings and continued inventory declines. Where are the “hot areas” for sales on Marco Island?

Beachfront condos sales increased by 31 percent

Water direct homes sales increased by 25.5 percent

Beachfront condos

The largest area of growth in the beachfront condo market can be found in the under $1million market with a growth rate of 71 percent in a year-over-year comparison. Consider that the lowest price beachfront condo is a 1 bedroom/1 bathroom condo with only 600 square feet of living area in Admiralty, which is listed for $219,000. At the other extreme is the Grand Penthouse in Belize with more than 13,500 square feet of living area, which is listed at $11,900,000.

A trend for “larger and better” in beachfront condos appears to be taking some strides in growth. When reviewing estate condos (exceed 4,500 square feet of living area) and penthouses, Marco Island has seen five of this class of condo go pending or close since May 1, 2008, and a total of seven for the year. In 2007, there were only two sales in this category. This class of condos is very limited in supply.

When you compare beachfront condo sales in a year-over-year comparison (1/1 to 8/13), you see the sales shown in the chart — Marco Island beachfront condo sales have grown dramatically over the past two years.

Water direct homes

Water direct homes experienced an increase in sales of more than 25.5 percent in a year-over-year comparison. The trend of buying has also grown in the Estate section of Marco Island. Consider that at this time last year there were seven water direct home sales in the estates; whereas, 2008, this has jumped to 12 sales to date. Noteworthy, is that the largest recorded sales on Marco Island transpired in 2007 with the following:

First, in June 2007, the highest sale was recorded at $8,400,000.

Second, in October 2007, the previous record was superseded by another record sale for $9,000,000.

For water direct properties currently on the market, the top end of the spectrum is the luxury estate home encompassing the tip lot in the estates with views of Caxambas Pass, the Gulf of Mexico, and stunning night lights of Marco’s skyline. This luxury estate home also offers more than 7,400 square feet of living area and is being offered on the market for $11,500,00. Entry level pricing in the water direct home market starts at $540,000 for a home built in 1974 with 2 bedrooms in the River area. This home is considered by some as a tear down or fixer upper on the water.

Unlike the rest of Florida

What sets Marco Island apart from the rest of Florida?

1. Marco Island is an island only accessible by two bridges. This island community offers a limited supply of luxury living within 6 miles of beachfront and 24 square miles of waterfront, beachfront, and island living. This desirable haven in paradise provides a quality lifestyle demanded by many of the estimated 78 million “baby boomers” starting to enter retirement age.

2. In many parts of Florida, new condos, homes, and high-rises continue to dot the landscape. On Marco Island, the last and final high-rise and large scale development, hit the streets in October 2006 on Marco Island’s beachfront, Madeira. Since our local market does not have a continued supply of inventory hitting its pool for buyers, when something comes off of the market, nothing will replenish and, in other areas, increase the inventory. All future inventory will come existing product.

3. Subtropical climate, numerous amenities, beautiful beaches, and desirable waterfront living. Our subtropical climate offers a wonderful winter refuge from the cold and snow. Our area consistently remains warmer in the winter months so visitors truly enjoy the Florida winter experience. With family in the St. Pete and Sarasota area in Florida, it amazes me at times when just a couple hours north of Marco Island, the areas north of the Caloosahatchee River, have colder, and in some cases, cold temperatures in comparison to our warmer climate on Marco Island.

Consider the pent-up demand, limited and decreasing inventory, sales growth of more than 38 percent for the last three months, and price appreciation in aspects of the marketplace, it appears that Marco Island has surpassed the bottom and is making its move upward. With more than 30 years in the real estate business as an attorney, advisor, and developer, Joe McAuliffe believes that “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.

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