The results are in for Florida real estate and Marco Island leads the pack with positive sales growth for the first four months of 2008. Consider that for the first quarter of 2008, in comparison to 2007, Marco Island posted impressive gains with the following reporting:

Condominiums sales increased by 30 percent.

Single family homes sales increased by 27 percent.

Once again in April, Marco Island surpassed most of the reporting areas of the state with the following gains over April 2007:

Condominiums sales increased by 51 percent.

Single family homes sales increased by 29 percent.

Data provided by the Florida Association of Realtors and the University of Florida Bergstrom Center for Real Estate Studies.

Furthermore, let’s not forget the outstanding sales growth for May 2008 where sales were on track with sales figures from May 2005 (reference the attached chart).

What sets Marco Island apart from the rest of the state with its stellar sales reports? Marco Island lacks the urban sprawl, future high-rise construction, and high density developments found in many areas of Florida. Therefore, the anticipated deluge of future inventory is not a factor for our local market. Furthermore, waterfront and beachfront properties become a commodity as the available inventory continues to decrease. Where can you duplicate this lifestyle, climate, and beauty?

Unless we experience a surge in buying in the next few days, it appears that sales, as of 6/25/08, are on track for a more modest sales increase of 16 percent in comparison to June 2007. Properties on the market for sale, or Buyers selection has dropped by over 14 percent in comparison to June 2007.

Many ask what is happening with prices in Marco Island and I point out that price appreciation and depreciation are specific within areas of Marco. It drills down to water access, age of home, location, beachfront condos, and as specific to different floor plans in the same condo complex. This is what brings about the expertise of the comprehensive market analysis which can be requested by a local and experienced Realtor on Marco Island. The following shows an overview of water direct home and beachfront condo market on Marco Island.

Sales are up in specific areas of the market especially for “water direct” homes, or waterfront homes without bridge height limitations for boating access to the Gulf of Mexico.

• Water direct homes are up 40 percent in sales volume for the first five months (1/1/08 to 5/31/08) of 2008 in comparison to 2007.

• The average sale price for water direct homes on Marco Island increased by 18 percent in a 5 month comparison of 2007 ($1,317,883) to 2008 ($1,558,193).

• Excluded in the sales figures above are the two record sales on Marco Island in 2007, both water direct homes in the Estates section: 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.

Another area with sales growth is beachfront condos.

• Beachfront condos are up 28 percent in sales volume for the first five months (1/1/08 to 5/31/08) of 2008 in comparison to 2007.

• The average sale price for beachfront condos on Marco Island decreased by 7.5 percent in a 5 month comparison of 2007 ($1,123,792) to 2008 ($1,039,338).

• Through June 26, 2008, Madeira experienced a 10 percent increase on a price per square foot basis.

• When you review the sales for the “Royalty” beachfront condos (Duchess, Prince, and Princess): There were only two sales in the first part of 2007 and a total of 11 sales for 2008 to date. The first two bedroom sale in early January 2008 sold for $600,000. In June 2008, there were two condo sales for over $800,000 of two bedroom condos in the “Royalty” buildings.

With the positive growth trends, minimal new development, continued decreases to existing inventory, and price appreciation in aspects of the marketplace, it appears that Marco Island has surpassed the bottom and is making its move upward.

The following quote seems fitting for our current market conditions, “there may never in our lifetime, be a better time to buy,” by Joe McAuliffe, an attorney and adviser in the Florida real estate market.

Please send your comments to NatalieK@premiermail.net about your thoughts on the market.

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Natalie Kirstein, MBA; “2007 Top Producer Award for Excellent Sales — Women’s Council of Realtors.” 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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