Happy New Year

Real estate has been a hot topic of conversation all over the county, not just on Marco Island. Our market started to pick up several months after the onset of the pandemic, thus we have been in an extremely active market for over 18 months. 

But we have already started to see a slowdown in our numbers, not because demand is waning, but because of the lack of inventory. 

The current Marco Island inventory in MLS is 175 units. 

Total closed sales of Marco Island property went up 25% in 2021 compared to 2020, 1793 units vs. 1433. (For comparison, the increase from 2019 and 2020 was 45 percent, 989 vs 1433.) The dollar sales volume increased by 63 percent and it equaled just over $1.8B.  There was a 17% increase in the number of single-family homes sold, 665 vs. 569, with an increase in median price of 48 percent. Condo sales saw a 42% increase, 593 vs. 842 with an increase in median sales price of 26%. Vacant land sales increased by 7%, 271 vs 290 with an increase in median sales price of 26 percent. I calculated these numbers from the properties that closed in the Marco Island MLS system, they do not include private sales or new home construction sales. 

There is still ample demand for property on Marco Island. We have many buyers vying for fewer properties and most properties will sell quickly and often with multiple offers. Anyone thinking about selling should list to achieve the maximum selling price. Many Realtors, like me, have buyers still waiting to buy, and putting your property on the open market, exposing it to a broader base of buyers, will achieve more money in your pocket.  If you are thinking about selling your Marco Island property, please call me for advice. There is no substitute for local expertise and knowledge of the market. 

PRICING PROPERTY- MY TAKE

Pricing listings has never been more difficult. The old method of looking at recent closed comparable sales, which has been my strategy and the basis of my update reports for all these years, to determine value has pretty much gone out the window. Now in this ever-increasing market, it seems each new listing is a test of the market, even sometimes a roll of the dice, as we are seeing some of the highest sales prices ever. Those sales prices are being determined by very motivated buyers who are outbidding others. Marco is fortunate to have an ample supply of well qualified and often cash buyers. We may list at a price that seems irrational but they still sell.  This market is changing the way we conduct business. I now look at closed sales and they can be vastly different from each other depending on how long it took to close the transaction. The million-dollar question now is “Is this market going to keep going up?” We have not yet seen a slowdown, largely due to our low inventory, but eventually it will level out. For now, it is still a great time to list. 

RENTALS

The increase in sales prices has priced many buyers out of the market and has increased the demand for rentals. Rental rates have gone up in the process. If you are renting your property, check to be sure you are charging an appropriate rate. 

ABSORPTION RATE

I haven’t talked about Absorption rate in a while, but it is very relevant now. Absorption rate tell us how long our current inventory will last based on recent closed sales, in other words how long will it take for the current inventory to be sold.  The current numbers are impressive. For homes and condos, we currently have a 1-month supply of inventory and for vacant lots we have a 3 months’ supply. The normal national average for absorption rate is a six-month supply. 

CITY UPDATES

The Fire Station on San Marco Rd. has been demolished to make way for a hurricane rated new station which is currently under construction.

Veteran’s Community Park is under construction for park 

wide improvements &

beautification including a Bandshell and restrooms, projected completion is July 2022. 

West Winterberry Bridge will be replaced; the one by South Heathwood Dr. This is scheduled to begin in the latter part of 2022. 

Millage Rate for Fiscal Year 2022, The city has announced there will be no tax rate increase in 2022. 

INTERESTED IN SELLING?

There is no better time to sell. List your property, use it for season and schedule closing for when you leaving. Sellers are in the driver’s seat, let me help you negotiate the terms that will make your sale worthwhile.