MArco Eagle -- Friday, February 22, 2008
By NATALIE KIRSTEIN
The unprecedented real estate market boom and its demise appear to be showing signs of a transition. Today, we see more sidelined buyers actively perusing and buying in the current marketplace.
One driving factor that has brought buyers off of the fence is the significant change in the stock market.
Buyers, especially those with significant losses in the stock market, realize that they could have purchased premium real estate such as beachfront and waterfront properties for their long term enjoyment.
Also, consider that Naples and Marco Island have a limited supply of developable waterfront properties and little, if any, available beachfront properties, thus, making these "commodities" for the long term homeowner.
Another factor is the financially savvy baby boomer strategizing to minimize their tax implications, especially those encountering a lump sum retirement pay-out or the sale of a business. The benefits of tax saving for primary residents of Florida can be monumental for baby boomers transitioning into retirement from states with a hefty personal state income tax.
Another factor increasing the activity in the marketplace is word of mouth. As sidelined buyers speculate that the bottom of the market is evident or has passed, their anticipation and fervor grows. This optimism also stems from an increase in positive reporting in the news media. On Feb. 14, 2008, a Naples Daily News headline read, "Sales up in Naples area in January, attitudes are upbeat".
In a recent News-Press article, Dan Lubner, vice president for marketing for the Fort Myers-based Robb & Stucky furniture and interior design firm, stated, "in the past month, some Robb & Stucky-furnished builder models in WCI communities have sold. And, while Robb & Stucky sales overall were flat in the fourth quarter of 2007, Bonita actually saw a 20 percent uptick (...) I honestly believe things aren't as bad as we read every day."
In a recent Naples Daily News article Tom Bringardner, President of Premier Properties of Southwest Florida, Inc. stated that, "besides better prices, pent-up demand and lower interest rates also are driving more sales." He expects season to last longer this year because buyers are getting more serious. Some buyers are losing out because they're waiting too long to make offers and the homes they want are going under contract, he said.
Increases in pending sales and buyer activity have been reported on Marco Island, Naples, and Lee County.
On Marco Island, inventory levels continue to show declines in available real estate, but remain at higher than normal levels. In a year-over-year comparison, available inventory for January 2008 in comparison to January 2007 declined by 9.5 percent. For this same time period, pending sales were up by almost 4 percent and closed sales increased by 4.76 percent.
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 enjoying the white sandy beaches, rather than the white snow, and luxury lifestyle that Marco and Naples have to offer!
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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.
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