Real Estate: What’s going on in the Marco market

At Prudential Florida Realty we are so convinced that “it is the right time to buy” that we are launching our Homebuyer Price Guarantee and Homebuyer Employment Guarantee — our real estate stimulus packages.

It is the optimum time for buyers who are purchasing for their current and future use to get into the market. I encourage anyone interested in selling or buying to contact a Realtor at Prudential Florida Realty for complete information about these two energizing programs.

Our confidence is based on data made available to Realtors by the Marco Island Area Multiple Listing Service (MLS). During the “season” we had tremendous activity in property viewings and offers being presented. The proverbial “bottom feeders” were out in full force. This is demonstrated by the remarkable decline in both the median and average prices of properties sold this year as compared to the same time period the previous year. This increased activity level created a certain sense of urgency among sellers who responded by making their properties available at reduced prices, or taking them off the market.

We also experienced a ‘run’ on foreclosed and short sale properties. I would speculate that between 30 and 40 percent of all closed transactions during the first four and one half months was either a short sale or a foreclosed property.

All of the above created a significant (11.7 percent) drop in inventory from a year ago. My other favorite barometer, the list-to-sell ratio, is slowly creeping up indicating that the listed prices are much more in line with what buyers are willing to pay. Both of these factors are my key indicators of things to come. Both the median and average price of closed transactions were more than 30 percent lower than they were a year ago. We are level with median and average prices for the same period in 2002 which is my baseline for market evaluation. Historically, property prices very rarely retreat to lower levels than what the prices were in the year prior to the short lived 2003 -2005 hyper boom.

While the number of closed transactions actually declined about 20 percent during the first 4.5 months of 2009 as compared to the same period in 2008 this indicates that many prospective buyers are rightfully cautious. The aforementioned showing activity indicates that there is a renewed and increased interest in the Marco Island real estate market. During the past three plus years we have seen property prices decline to levels of affordability unseen since 2002.

We are on the cusp of demand once again driving prices. I foresee increased opportunities for buyers and sellers. That is why Prudential Florida Realty is ready to stand by our sellers and buyers with a realistic demonstration of our convictions.