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The real estate market has received positive tidbits despite the overall negative media attention and credit crisis. While one would expect negative sales numbers with the recent news, we are experiencing quite the opposite nationally and locally. Furthermore, many reports indicate that affordability is the driving factor bringing buyers back into the marketplace.

National reports

A recent article by the National Association of Realtors was titled “Homes Sales Skyrocket in Southern California.” Southern California experienced a 65 percent increase in sales for September 2008, which is the largest recorded increase in over 20 years.

For the past two months, the National Association Realtors has reported overall increases in sales. For August 2008, sales surged by 7.4 percent in comparison to July 2008 and increased 9 percent in a year over year comparison. In September, growth in the real estate market was reported with an increase of 5.5 percent and 1.4 percent over September 2007 for a year over year comparison.

Lawrence Yun, National Association of Realtors chief economist, said more markets are seeing year-over-year gains.

Naples

Across the bridge, Naples reported its eighth month of consecutive gains in sales for September 2008 according to the Naples Area Board of Realtors (NABOR).

“The greater Naples Area is seeing a double digit growth in all geographic areas in overall pending sales. The increase ranged from 47 percent in South Naples to as much as 244 percent in Central Naples” stated Brett Brown, managing broker of Miromar Realty of SW Florida.

Marco Island

Locally, for the past six months, Marco Island has experienced a 24.4 percent increase in closed sales over 2007. For the 6 month period of May 1 to October 29, Marco Island had 283 sales in 2007 and 352 in 2008. As of October 29, 2008, pending and closed sales had already surpassed sales figures for October 2007.

While the real estate horizon looks bright in some areas of the United States and Naples, the light is very bright on Marco with its limited future inventory growth.

We still face two undesirable aspects to the market. First, inventory numbers are down by 13.79 percent but overall inventory is still at higher than normal levels. Second, foreclosures and short sales, while a small percentage of our overall inventory, are impacting the marketplace.

Water direct homes

There is no doubt that sales and pricing are down for Marco Island when compared to the boom in 2005. For water direct homes, the average sale price in 2008, $1,475,199, is still higher than the average sale price of 2004 of $1,388,922. Reference the following chart for sales and average sale price history for 2003 to 2008. Notice that there are still over 2 months remaining in 2008 and sales have already surpassed 2007 sales numbers for the entire year.

Single family homes sales: Water direct

2008 2007 2006 2005 2004 2003

Number of sales

71 69 79 87 203 156

Average sales price

$1,475,199 $1,588,899 $1,693,013 $1,809,136 $1,388,922 $947,996

* Data compiled from Marco Island MLS – Jan. 1, 2003 to Oct. 20, 2008.

What can you find on the market near the average sale price of water direct homes? A home currently listed at $1,499,000 was built in 2000, has over 2500 square feet of living area, a nice bay view, located in the desirable Tigertail area, and has a boat dock with lifts for a boat and jet skiis.

Where does Marco Island go from here? Many Realtors express optimism for the marketplace with anticipation of continued sales growth and further reductions in inventory. As this scenario continues to occur, anticipate less selection on the market at today’s prices.

Natalie Kirstein, MBA, Realtor, works for Premier Properties of Southwest Florida Inc at The Esplanade. She can be contacted at NatalieK@premiermail.net or 784-0491.