Marco Eagle -- Wednesday, February 6, 2008
Optimism in the market is growing especially in the areas of Marco Island and Naples. There are so many things that impact the market but perception and word of mouth appear to be the biggest driving factor for buyers who are entering the marketplace.
On election night, one vote was helpful to the real estate industry, the property tax cutting amendment. This amendment provides property tax relief for primary homeowners in the following ways:
1. It doubles the existing homestead exemption from $25,000 to $50,000, thus, providing an average of $250 annual tax savings.
2. Homeowners who felt trapped because of the potential loss of their Save Our Homes cap have been given relief with the portability provision of this amendment. Now, owners with homestead can take up to $500,000 worth of Save our Home benefits to a new residence.
The tax cutting amendment provides positive news for fixed income households, homeowners desiring a move within the area and Florida, and retirees considering taking up primary residency in Florida.
While this amendment is positive news, there are several other factors that will continue to contribute to the growth of our real estate market, including stock market volatility, the favorable exchange rate for buyers from foreign countries, the warm climate, luxury lifestyle, and, most important, the large Baby Boomer population reaching retirement age.
In the high-end market of Naples, sales over $5 million grew by over 32 percent in 2007 in comparison to the 2006 closed sales, according to Carolyn Weinand, a Realtor with Premier Properties in Naples. Carolyn states that the Port Royal market consisted of 35 percent of the over $5 million sales with another 30 percent of the high-end sales coming from the luxury lifestyle communities of Grey Oaks and Bay Colony.
Carolyn's optimism stems from the increased activity in the higher-end markets, which she believes, eventually gravitates to all price points in her marketplace.
On Marco Island, the increase in activity is evident as many Realtors and real estate offices on Marco are reporting an increase in showings and activity. A large portion of this activity is focused on the lowest priced and best value properties. We continue to see higher than desired inventory levels but the levels continue to decline in comparison to the same time period in 2007.
Between January 2007 and January 2008, inventory levels decreased by 9.7 percent. The same comparison shows that pending sales rose by 5.9 percent and closed sales increased by 4.8 percent. Pending sales indicate a property is under contract (without any contingencies in place). Pending sales trends are in a positive direction changing from an average of 1.7 per day in 2007 and the week of January 14, 2008 where pending sales per day surged to 3.8.
A conversation with a Realtor last week indicated that a water indirect home that he had listed for more than 2 years had two offers in a matter of days during the last week in January. The property is now a pending sale.
As I have mentioned in previous articles, the Fiddler's Creek $1 million plus market is another area experiencing signs of growth with an increase in pending and closed sales since Nov. 30, 2007.
Recently, Realtors were negotiating two offers, at the same time, for a former model home in Fiddler's Creek. This pending sale is an example of yet another luxury home in this community that is no longer available to buyers.
The sidelined buyers are missing their opportunity to purchase the best value and most desirable properties. As inventory levels continue to decline, price negotiation and selection will diminish.
Don't miss your chance for a winter residence, frolicking in the sun and sand, to escape from the cold weather and your snow shovel.
---
Natalie Kirstein, MBA, Realtor, works for Premier Properties of Southwest Florida Inc at The Esplanade. She can be contacted at NatalieK@premiermail.net or 642-2222.
Comments(0)