AREA STATISTICS AS OF Q4 2011

As you can see from the graphs below, Collier county sale volumes have been trending up over the last four years. There was a little instability during the Q2-Q3 period of 2010 when the BP Oil spill fears caused buyers to suspend their home search activities. However, once buyers realized that Southwest Florida beaches were never affected, the momentum resumed.

At the same time, average prices appear to be stabilizing and are showing some signs of growth. Both the Naples real estate and Marco Island real estate markets are running above the trend line which could indicate a change in trend. We don't anticipate that we will see any significant price growth for the coming year due to a steady stream of distressed properties that are entering into the market. However, this market has a tendency to heat up quickly and prices may move up sharply. Meaning those buyers that remain on the sidelines may find themselves paying more than expected for the same home.

If you or someone you know are interested in buying, selling or investing in the Marco Island area, please call 239.394.3040 or email BuyParadise@BartosGroup.com

Marco Island Update

Once again, Marco Island's real estate market showed strength as Q4 2011 sales volumes were up by 9% over Q4 2010. We are seeing a downward trend in active listings as inventory was down over 16% and new listing were down over 19%. We still continue to see a steady stream of distressed properties entering the market but they have yet to impact the overall trends. According to RealtyTrac, foreclosures make up about 12% of Marco Island market, well below Florida's average of 28%, Collier County 19% and 16% nationally. With the interest rates at unbelievable level, we are also seeing a modest shift to more financing. Let's analyze the individual categories.

Single Family Homes: Single Family homes saw the highest drop in inventory with 22.65% decrease in active listings and 28.5% in new listings. The falling inventory is creating a demand for properties that we have not seen in a long time. With fewer desirable properties to choose from, pending sales have taken a dip but average sales price has surged 15.25%. Our advise, if you find a house you like, don't hesitate to get a contract on it or someone else will!

Residential Lots: With the shortage of home inventory and some of the best prices on lots in years, many buyers are opting to grab a piece of paradise in a residential lot. While the lot inventory was down about 5%, the pending sales skyrocketed 64%. Q4 2011 lots sales notched nearly 24% higher than the last Q4. Whether they intend to build now or later, buyer have reenergized the residential lot market. With more lots selling, the construction starts are at their highest in years.

Condos: The Marco Island condo market mirrored the overall inventory levels and registered nearly 18% increase in sales for Q4 2011. Condos prices decreased about 18% from Q4 2010. However, there was no significant adjustment for Q3 2011.
In summary, We believe that inventories will continue to slowly shrink to create further demand as more buyers loosen their purse strings to move forward with their dreams. We feel that the single family home market has reached an equilibrium and the price trend could change to positive in 2012. We will see newer properties with reasonable prices move off the market quickly. We believe that lots will continue to sell strong as home inventory decreases and new construction becomes a more viable option. We should see some stabilization of lot prices in 2012. Condos prices have started to level and sale volume should be good as we go through season.

If you or someone you know are interested in buying, selling or investing in Marco Island real estate or Naples real estate, please call 239.394.3040 or email BuyParadise@BartosGroup.com