Caleb Mardini had an excellent post earlier today What Do You Say? In it he sighted two of my previous posts and how do we assist the consumer with all the information that is out there. How do we assist buyers and sellers with the massive information overload. In it I wrote:
"The question at hand is one that is very difficult to answer outright. One that I have been struggling with here. I see that the past two years we have been correcting from what happened with all the investors that were moving away from the stock market and into Real Estate for the perceived "quick buck" in flipping properties. I am not the only Realtor having great difficulty in getting buyers off the fence. Buyers are stuck in analysis paralysis, waiting for the absolutely perfect time. There will be a few that will be that lucky, then the market will take off and I will hear a series of "I wish I had listened to you."
Marco Island is in a correction period, a period that I think we are near to the end of the downswing and ready to head back upwards. What we saw in 2004-2005 won't happen again. It will be a slow growth. Like most of us have said, Real Estate is an excellent long term investment. For the general consumer who is purchasing for their personal use, this is really an excellent opportunity. Those willing to hold the property longer than 3 years.
All those that purchased proprieties with 100% financing with 3-year ARMs, those that speculated that the market was going to continue to increase are now in trouble. Coupled with the insurance rate and tax increases are forcing some investors to sell. The flooded market creates competition and drives these prices down further. All those bad reports in the media have made buyers afraid. I have not seen prices this low in a very long time. There are some absolutely wonderful opportunities here on Marco Island - it is just a matter of someone having a vision and solid long term plan."
Caleb's response "...That is to say we cannot predict the future, the reasons for buying are less financial in nature and more related to other things. Are we addressing those things? If so how? And how are we addressing those questions that do ask of us to predict the markets?" made me think. How can I assist people with Analysis Paralysis. I started to think about it, so I went to the MLS to see what historically went on here on Marco Island.
So I am continuing this here, I decided to look at the month of January, looking year to year. I saw what I already knew in my heart in solid facts. Things are looking up. It appears we are starting to come out of this downturn in the market for Single Family Homes, so those of you wishing to purchase an absolute bargain, you need to be seriously looking now. There had not been prices this low in a long time, there is amazing amount of inventory with motivated sellers.
Here is the look at the month of January for years 2001-2007 for Single Family Homes, Condos and Lots.
| Year | # Closed | Lowest Sales | Highest Sales | Average Sales | Total Dollar Volume Sold | Average Days on Market |
| | | | | | | | |
| Marco Island Single Family Homes | 2001 | 21 | $ 199,500 | $ 1,150,000 | $ 497,095 | $10,439,000 | 126 |
| 2002 | 19 | $ 185,000 | $ 1,250,000 | $ 507,258 | $ 9,637,900 | 181 |
| 2003 | 35 | $ 165,000 | $ 1,650,000 | $ 506,968 | $17,743,863 | 186 |
| 2004 | 61 | $ 250,000 | $ 5,000,000 | $ 686,711 | $41,889,360 | 190 |
| 2005 | 45 | $ 419,900 | $ 3,500,000 | $ 1,148,098 | $51,664,400 | 175 |
| 2006 | 14 | $ 399,500 | $ 1,550,000 | $ 872,393 | $12,213,500 | 272 |
| 2007 | 22 | $ 370,000 | $ 2,050,000 | $ 916,545 | $20,164,000 | 208 |
| | | | | | | | |
| Marco Island Condos | 2001 | 59 | $ 68,500 | $ 1,525,000 | $ 378,525 | $22,333,000 | 144 |
| 2002 | 71 | $ 72,000 | $ 725,000 | $ 394,329 | $27,997,375 | 458 |
| 2003 | 54 | $ 89,900 | $ 2,250,000 | $ 399,176 | $21,555,500 | 220 |
| 2004 | 57 | $ 95,000 | $ 2,525,000 | $ 393,593 | $22,434,800 | 200 |
| 2005 | 65 | $ 163,000 | $ 1,850,000 | $ 669,620 | $43,525,296 | 177 |
| 2006 | 12 | $ 180,000 | $ 2,800,000 | $ 924,167 | $11,090,000 | 206 |
| 2007 | 12 | $ 200,000 | $ 1,960,000 | $ 723,583 | $ 8,683,000 | 189 |
| | | | | | | | |
| Marco Island Lots | 2001 | 43 | $ 52,000 | $ 1,400,000 | $ 262,350 | $11,281,054 | 105 |
| 2002 | 19 | $ 76,250 | $ 1,450,000 | $ 313,105 | $ 5,949,000 | 216 |
| 2003 | 39 | $ 84,000 | $ 2,100,000 | $ 342,146 | $13,343,287 | 354 |
| 2004 | 58 | $ 105,000 | $ 2,550,000 | $ 425,878 | $24,700,924 | 240 |
| 2005 | 24 | $ 429,500 | $ 1,750,000 | $ 885,229 | $21,245,500 | 164 |
| 2006 | 4 | $ 395,000 | $ 1,715,000 | $ 1,128,750 | $ 4,515,000 | 391 |
| 2007 | 5 | $ 150,000 | $ 1,500,000 | $ 622,000 | $ 3,110,000 | 223 |
| | | | | | | | |
Investors have left the market and are trying to get rid of their properties. Now that buyers are starting to purchase we will see prices normalize. This is an excellent time to purchase a property if you:
- Are ready to make a long term investment, hold onto for at least 3 years
- Ready to enjoy the best that Florida has to offer
- Know what you want and are open to the possibilities as there are many options right now with the sheer number of listings available.
- Have your financing in place and ready to go, sometimes the best deals you need to be able to close in a short period of time.
To discuss Southwest Florida opportunities, please feel free to call me at (239) 821-3063 or email me at colleen@paradisereport.com. Visit my website for additional information, and photos of Southwest Florida.
All statistical information is gathered from the Marco Island Area Association of Realtors. This information is deemed accurate, but not warranted.
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