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With all the volatility in the real estate market, one might think this is the time to sit on the sidelines with your cash stuffed under the mattress. From the news of the credit crisis, falling housing prices, and plunges in the stock market, many wonder where to turn.

Surprisingly, CNBC reported on Oct. 8, a pending home sale surge for August 2008. This report, from the National Association of Realtors, shows an increase of 7.4 percent in pending sales over July 2008.

The experts on CNBC seem to agree that improved affordability is driving the sales increase. They also indicated that credit is still available for those with credentials from the “old days” — good credit, down payment, and reported income. For the week ending Oct. 3, mortgage applications rose by 2.2 percent according to the Mortgage Bankers Association.

One comment I heard on the news reports was the emphasis that real estate is local. Let’s take that into consideration for Marco Island.

This island is unlike much of Florida with its beautiful beaches, amenity-rich lifestyle, boating, and minimal development. Unlike other areas of the state, Marco Island does not have the continued deluge of new construction coming into its marketplace. This is especially true in areas with high-rises and sprawling high density developments.

When doing a year over year comparison for Marco Island, consider the following:

n September 2008 pending sales increased by 90 percent growing from 20 sales in 2007 to 38 sales in 2008.

n September 2008 closed sales increased by almost 30 percent with 27 sales in 2007 and 35 sales in 2008.

n Overall, for the past 5 months, Marco Island has experienced a 27 percent increase in closed sales over 2007 (May to September).

n For September 2008, inventory showed consistency with a drop of 13 percent.

Where is the biggest concentration of sales in 2008 (based on number of units sold)?

1. Beachfront condominium sales priced under $1,000,000. This price range encompasses a large majority of the one and two bedroom beachfront condominiums. Three-bedrooms units for sale in this price range are few and far between. Three bedroom units priced under $1,000,000 can only be found in Hideaway, Prince, Marbelle, Apollo, and Sandpiper.

2. Water indirect home sales. Water indirect means there are some boat limitations due to the height of the bridge for exit and entry to the Gulf of Mexico. Water indirect homes range from $365,000 to $4,750,000. The median priced home is listed at $835,000. This home was built in 1980, has more than 2,670 square feet of living area, long water view, pool, and boat dock.

3. Water direct home sales. Water direct means that bridge height is not a limiting factor for exit and entry to the Gulf of Mexico. Water direct homes are listed in the range from $559,000 to $11,500,000. The median priced home is listed at $1,650,000. This new home has a canal view in the river area. The home boasts more than 3,200 square feet of living area, pool, tile and wood flooring, granite counters, security system, and already hooked up to sewer. There is a new sea wall but no boat dock.

Will the market continue the positive momentum that it experienced for a good part of the summer months? Many Realtors appear optimistic that buyers will be pulling their money out of the stock market and put into something solid such as real estate. Segments of the market are experiencing strong showing history and demand. One listing had more than seven showings in one week and a contract within the first month of its listing. Sellers need to remember that pricing to the market comparables is key to a sale. As for buyers, selection has been dropping slowly for the past nine months. As inventory continues to decline, your selection dwindles and pricing goes up.

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.