By Jim Prange
The tide is turning. Every January, the sales statistics from the previous year are reviewed to gauge how the real estate market is doing and to help prepare State of the Island Real Estate Report, and my Deal or No Deal Part IV. The latest statistics are incredibly uplifting! With the exception of a 7 month speed bump as a result of the BP oil concerns, our sales on Marco Island have increased every year since 2007.
2011 was the year of reality…we saw record low prices in some areas and, in the last six months, we also observed a major resurgence in the luxury home market in the $2-4,000,000 price range. Luxury prices went from a high of $1,300/square foot in 2008, down to as low as $440/square foot and now are climbing back over $700/square foot…with many choice locations disappearing.
In 2011 we saw home sales increase by 11% from 2010 and for the first time since 2005, the average price of a Marco Island home actually increased. Two years ago, we had a 3.5 year supply of waterfront homes…today we are down to a one-year supply which represents a normal market. Many of the Island’s home builders are back to work and the buyers are craving new construction.
Condo sales have increased by 30% from 2010 to 2011. You can still buy a 2 bedroom condo on the beach for less than $300,000. Don’t expect that to last. The lack of available land for development is going to create a MAJOR supply problem in the coming years.
There were 107 lots sold on Marco in 2011. That represented a 32% increase from the year prior and we saw the average sales price increase for the first time since 2005. And think about it, in 1999, 799 lots were sold on Marco Island.
Jim and Nikki are a father and daughter team who work at Premier Sotheby’s International Realty and can be reached at 239-642-1133.