The following statistics compare the first quarter of 2016 to 2015
Sold Single Family Home Sales DOWN 34% (73 vs. 111)
Sold Condominium Sales DOWN 25% (113 vs 151)
Sold Single Family Vacant Lots DOWN 52% (27 vs 56)
Average Sale Price Single Family Home DOWN 3% ($917k vs $948k)
Average Sale Price Condominium DOWN 17% (($488k vs $591k)
Average Sale Price Single Family Vacant Lot UP 38% ($620k vs 448k)
Total Dollar Value of all Single Family Homes Sold DOWN 36% ($67M vs $105M)
Total Dollar Value of all Condominiums Sold DOWN 38% ($55M vs $89M)
Total Dollar Value of all Single Family Lots Sold DOWN 33% ($17M vs $25M)
Current Inventory:
399 Single Family Homes (Up 21% from 2015)
369 Condominiums (Up 18% from 2015)
365 Single Family Lots (UP 5% from 2015)
Summary:
$141,000,000 (That's $141 Million) worth of Real Estate closed in the first 3 months on Marco Island and there is lots of red ink above. Is the sky falling Chicken Little you ask? NO! is my emphatic reply. Before I go into detail as to why I say no, I'm going to tell you a story with a moral as to why you need to believe me. So, here goes. I'm standing around at a party the other day sipping a Perrier (ok, that's a lie but the rest here is equally as partially true). I get introduced to a man who was a doctor. I asked him if he was a medical doctor to which he replied yes. I said good, I've had a sore throat for a few days, could you take a peek in my mouth and tell me what you see. He said okay and as he looked in his eyes got wide and he said "Oh, my - you've got two of the biggest hemorrhoids I've ever seen in the back of your throat". I take a swig off my Manhattan, I mean Perrier, and I ask "what kind of doctor are you?" to which he replies "I'm a proctologist"...
There are many morals wrapped up in this little story. The first one is, consult with an expert that knows what they are talking about and trust what they tell you. The second moral is don't trust someone's opinion just because they offer it up to you and pretend they are an expert (especially at a party where liquor is served). The third, people sometimes see what they want to see and believe it. In short, I know what I'm looking at when I look at real estate statistics on Marco Island, but that doesn't mean it applies to every part of the country. And no matter where you are, I would quit going to Zillow and looking at their "Zestimates" for they are as worthless as a proctologist looking in your mouth.
Now for those of you that pay for this vital newsletter each month, I keep hearing and reading that the market is crashing, burning and armageddon is just around the corner. But, I'm here to tell you it's not true. Sure, the market cooled off but it's healthy now. The inventory is creeping back up. The average sale prices are correcting because there hasn't been a lot of very high end sales. And I'll point out that those prior very high end sales skewed the market to a point whereby everyone looking at average price was screaming the market is on fire. That mentality spilled over to the sellers who kept jacking up asking prices in an attempt to keep up with perceived escalating average sale price increases. This in turned caused the buyers to stop buying, because they too can read the same articles and decide this is a bad time to buy. So, now what is happening? I'll tell you what... and my faithful 7.6 monthly readers will back me up on this because I called this one months before any of the other pundit Realtor proctologists figured it out. The lower and middle markets were not on fire, even though the average sale price was increasing and the smart sellers who read my newsletter started lowering their prices. Now, many properties are being put back into the selling strike zone and I predict sales will remain nice and healthy. For example I recently did a deal where the seller was asking $499,000 for months... and months... and months... and it's a beautiful unit. He wakes up one day and scratches his head and decides to lower the price to $475,000, then he waits a bit longer with no action and lowers it again to $450,000. Within a week he gets an offer and sells for about $420,000. This may or may not have been an actual loss for him, but, he moves on down the road with one less headache in his life besides the one from toooo many Manhattans.
By example, in the numbers way above, I report the average sale price of lots is up 38% for the quarter. This is because one very, very wealthy Marconian bought two lots for $4 million dollars in January to add to his collection and that pushed the average WAY up. Does that mean everyone with a lot for sale should jack their price up 38%, no, but I guarantee you some will see that number and do just that. Here is another tip, if the rich guy is buying, it may be a good idea to follow his lead.
Now for the high and low sales for the month. A home at 267 Shadowridge closed for $270K on the budget end and a home at 1286 Orange Court closed for $3,300,000 in the caviar section of Marco. A 2 bedroom condo in Marco Manor closed for $126k and beautiful beachfront unit in the Princess closed for $1,515,250. (Glad he squeezed that buyer for the extra $250). And in the lot world 1160 Bluebird closed for $115,000 and 900 Caxambas closed for $514K. Keep in mind folks that no matter how much you spend you still get to eat dinner at any of the great restaurants here on Marco Island.
Repeating myself for the millionth time, if you are thinking of selling, it is a great time to do so, as long as you price your property correctly. The old days of there being a distinct "season" have diminished and property sells year round. If you would like to be put on my daily update list of what is coming on the market, just send me an email and I'll plug you in.
And remember, I won't be out thought or out fought.
Gerry Rosenblum
Broker Associate
Berkshire Hathaway HomeServices Florida Realty
Realtors
2008 Realtor of The Year - Marco Island
239-450-4770 (cell)
1-888-239-5131 (toll free e-fax)
1-800-237-8817 (toll free)
To View the Entire Marco MLS go to: www.viewmarco.com
1-888-239-5131 (toll free e-fax)
1-800-237-8817 (toll free)
To View the Entire Marco MLS go to: www.viewmarco.com
