Sold single family homes DOWN 13% (26 vs 30)
Sold condominiums UP 6% (37 vs 35)
Sold single family vacant lots UP 44% (13 vs 9)
Pending sales of single family homes DOWN 40% (26 vs 43)
Pending sales of condominiums DOWN 53% (34 vs 73)
Pending sales of vacant single family lots DOWN 45% (11 vs 20)
Inventory:
244 Single family homes (DOWN 15% from 2014)
238 Condominiums (DOWN 25% from 2014)
288 Single family lots (DOWN 6% from 2014)
Summary:
A total of $54 Million dollars worth of real estate closed on Marco Island in the Month of October, 2015. ($63 Million dollars worth in September 2015 and $50 Million in October 2014).
Look above at the SOLD numbers, these are properties that closed in October. Now look at the PENDING sales, these are properties that went under contract in October and will close somewhere in the near future. What do those huge red PENDING numbers tell us? It tells us the number of people actually purchasing property is slowing down pretty dramatically. Why, you ask, is this happening? I'll tell you why, it's because many of the asking prices out there are unrealistic at this time and prospective "Buyers" are simply taking a pass and becoming "Waiters" (and I don't mean it in the restaurant server sense). "Buyers" start looking at recent closed comps and the current asking prices, and in many cases (not all) they are looking at a disparity. Couple that with a small inventory and many Realtors better have a nest egg built up to live on until this sorts itself out. I recently had a customer and we looked at a condo where another unit in the building had closed within the last 6 months for about $800,000. When this new listing came on the market the asking price was over $1 Million and it was inferior in many ways. What did my customer do after they saw it and the price? They said thanks for showing it to me, I'll wait. Then they asked: Will someone pay that number? I don't know I said. Will the seller eventually lower the price significantly if it doesn't sell? I don't know I said. Will another unit with a more realistic asking price come on the market and get gobbled up? I don't know I said. My customer then said "well, what do you know?". I said, "I better go check the egg in my nest"
But kind of seriously, if you are a buyer, I believe you need to be patient. I believe you need to come to grips with paying a bit more for something than the last guy did. I believe the sellers have done a fine job testing the market and are coming to the realization that you can only squeeze the orange so hard, then nothing comes out. (Florida metaphor) I believe as season rolls around more properties will come on the market and many of those sellers are in it to sell it. Prices have come up to a point where they will be happy with their gain and move on. And, as every Realtor will tell you, there are X number of sellers that put their property on the market at a high price and give you the old "I don't care if I sell it, but if somebody wants to give me what I want I will." If you want to buy one of those properties, please call me.
Apparently for many, a popular feature of my monthly update is the telling of the Home, Lot and Condo with the highest price sale. Not wanting to disappoint the 3 people that read this email, this month a house closed on the beach in Hideaway for $5,800,000, a vacant lot closed on the beach in Hideaway for $3,750,000 and a condo in the Madeira closed for $3,150,000. Like most of you and I, all of those buyers have problems, money just isn't one of them.
As always, please reach out and contact me if you have any real estate questions. And if you are thinking of using me as your Realtor, keep in mind I will never be out thought or out fought.
