The once dismal discussion of real estate is fast becoming the hot topic in newspapers, financial news shows, and other media outlets. One thing is certain, the market is showing signs of recovery.
Momentum in the real estate market appears to be multi-faceted with real estate prices down significantly from the peak, the stock market experiencing gains, and interest rates at low levels.
Nationally
Let's consider some of the national reports on the real estate market.
- On August 25th, 2009, the Associated Press reported a 9.6% increase in sales of U.S. homes. The article indicated that the "housing market is climbing back from the historic bottom it reached early this year."
- For June 2009, the U.S. experienced price gains for the second consecutive month. According to The S&P/Case-Shiller index, home prices in 20 major cities were up 1.4% (in the last three months ending June 30 compared to three months ending May 31).
- The Wall Street Journal recently reported that "the housing market may be steadying after years of decline."
Florida
In more localized news, Florida continued to report strong home sales for July 2009 for the 11th consecutive month. Existing home sale increased in Florida by 37% in a year-to-year comparison.
Naples
In July 2009, U.S. News and World Report ranked Naples, Florida, third on the list of "America's 10 Best Undervalued Places to Live". Furthermore, Florida Travel & Life Magazine touts Naples as "one of the bargain areas of Florida". The magazine states that Naples with its "culture, class and money make this town a prized asset in any real-estate portfolio." This sentiment is reflected in the overall increase in home sales of 67% and inventory decrease of 12%.
According to Tom Bringardner, President of Premier Properties, "Every geographic area experienced an increase in both pending and closed sales, which is encouraging when looking at the bigger picture in Southwest Florida."
Naples - Four year Pending Sales Trends -- Based on information from the Naples Area Board of REALTORS for the period 6/1/05 through 7/31/09.
Marco Island
Marco Island is not reporting the sizeable gains found in Naples. In hindsight, Marco Island started its sales push in May 2008 when sales levels were reflecting 2005 sales levels. Unfortunately, that momentum stalled in the fall of 2008 with onset of the credit crisis.
Marco Island - Four Year Closed Sales Trend -- Based on information from the Marco island Area Association of REALTORS for the period 5/1/05 through 8/5/09.
Marco Island - Single Family Homes Sales
For Marco Island, through August 20th, 2009, the largest area of growth is the single family home market. Single family home sales in 2009 exceeded 2006 and 2007 sales (1/1 to 8/20). With three more months to go in 2009, single family homes are already on track to surpass 2008 home sales for the entire year.
- For 1/1/09 to 8/20/09, the total closed and pending sales (under contract with and without contingency) totaled 270.
- For 1/1/08 to 12/31/08, there were 263 home sales.
Based on information from the Marco island Area Association of REALTORS for the period 5/1/05 through 8/20/09.
The activity in the marketplace, news reports, and positive sales figures, indicate that our local real estate market is on track to build upon the positive momentum. In the Realtor community, we are experiencing continued activity in a traditionally slow real estate season. Furthermore, we anticipate an onslaught of movement from "the sidelined buyers" especially when the first snow fall blankets the northern states.
Natalie Kirstein, works for Premier Properties of Southwest Florida Realtors, Inc., phone 239-784-0491, e-mail NatalieK@PremierMail.net, www.MarcoIslandNaplesProperties.com.
Natalie uses her 13 years of experience in real estate appraisal and sales to generate informative and timely market reports for the Marco Eagle and her customer base.
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