Gary Elliott & Sandy Elliott
How’s the condo market? That answer depends on a number of factors. For instance, are you a seller or a buyer, where is the condo located on the island and what price range are you considering? According to the Collier County Property Assessor’s Office, Marco Island has 6,928 houses, 1,811 lots and 11,250 condos. That’s a total of 19,989 residential properties. Condos represent 56% of the properties on the island.
During the last three years Marco Island has averaged 1,171 residential property sales per year, including condos, homes and lots, creating a $699 million average annual market. Those sales represent a turnover rate of 5.9% for all properties. Condo sales during the same period averaged 572 transactions per year or 49% of the total number of real estate sales transactions on the island, with a turnover rate of 5.1%. Total annual volume of condo sales averaged $285 million per year or 41% of the total annual volume of residential real estate sales.
The number of condo sales for the last three years has been between 557 and 590 units, with an average of 572 units per year. We will probably finish this year with about 525 units sold or about 92% of the last three years’ average. Median sales price for a condo sold this year is $400,000, which is the same as last year’s median price. Median prices of condos rose from $329,000 in 2013 to $360,000 in 2014. Condo sales volume in 2016 will be about $275 million, or 96% of an average year.
Based on location, inland condos have the least amount of inventory for sale with just over six months supply, waterfront condos have nine months and beachfront condos have a 10-month supply. The lower the months of inventory available the more the market favors sellers.
Condos take time to sell and the number of days it takes varies with price and location. For instance, condos listed for under $500,000 are typically selling in six months; condos from $500,000 to $1 million take on average nine and a half months, and condos over $1 million take 16 months to sell. During the last 12 months 314 condos under $500,000 have sold; 147 between $500,000 and $1 million have sold and 42 condos over $1 million have sold. This month 174 condos are for sale under $500,000; 116 are for sale between $500,000 and $1 million, and 56 are for sale for over $1 million. The median price of a condo listed for sale on Marco Island last week was $497,000.