Monday, October 26, 2020

Real Estate is moving!

 

 

by Jim Prange

Surprise! Since 2007 sales of homes, lots and condos on Marco Island have increased. By 2010 a recovery had started, as witnessed by the number of closed sales from January through April on Marco Island. Compared to the same months in 2009, they were up dramatically…almost 2 to 1! There was one setback period following the Gulf of Mexico oil rig disaster on April 20, 2010. The number of closings dropped substantially from May through November. But, that has been turning around.

Each year, people start coming down as early as October. October buyers typically do not close until December. I really think it was a matter of people getting down here and seeing for themselves that our beaches are pristine and are not coated with oil. Closings rose from 21 sales in November to 81 in December, nearly a 400% increase!

Compared to previous years, total home sales have steadily increased each year since 2007. In 2007, there were 218 homes sold, while last year there were 317 (the highest number since 2004). In 2005, there were 306 homes sold at an average price of $1,148,870 compared to the average price for a home in 2010 of $623,176.

Condo sales are also on the rise showing a 22.5% increase since 2007. Last year, there were 322 closed sales, compared to 295 in 2009.

Lot sales are moving upward with a 28.5% increase in just one year! A contributing factor is that lot prices are back down to 2001-2002 levels. In 1999, 708 lots sold on Marco. There are presently only 340 lots for sale on Marco Island, with waterfront lots starting at $150,000.

The number of European and Canadian buyers is amazing! We are seeing more than half of our sales coming from those foreign markets. Just last week, we were working with a major hedge fund manager from Europe who confirmed that real estate in general, particularly in Florida, was extremely attractive to European investors who are looking for a safe place to put their money. Toss in the beauty and amenities of this area, and it is especially appealing to buy Marco property.

Over the Christmas holidays, we had several showings on $5,000,000+ properties and we expect a lot of activity this season. What a great time to buy!!!

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