As we review the past year in real estate, it may seem gloomy in comparison to the boom of the not-so-distant past. We feel the implications of that investor-driven market and some of the decisions of that time period but much of the current news is, somehow, suppressed or lost in the shuffle of real estate news reporting. Three of the most defining areas that provide a silver lining are the foreign buyers entering our marketplace, the sidelined baby boomers waiting to enter our marketplace, and the continued strength of the high-end real estate market.
We hear news about the favorable currency exchange for our foreign counterparts. A recent Associated Press articles found 7.3% of the sales in Florida Real Estate were by foreign buyers. Consider the trend for the Canadian dollar which has grown in value from five years ago where it was worth only 63 cents against the US$ and is now almost equivalent of to the US$. A similar trends can be found with the English pounds which is worth well over $2 and the Euro is reported at almost $1.45.
Baby Boomers are entering retirement age and encompass an estimated population of 78 million. As we preview the weather reports across the country and receive welcoming calls from our friends and family up north, we can appreciate their desire to reside in our sunny 70 degree weather in comparison to the frigid 30 degree snow and ice.
Lastly, the high-end market continues to show signs of growth. When comparing closed sales for properties listed for over $5 million in Naples, there is an increase in sales of just over 32% - with 57 sales in 2007 in comparison to only 43 in 2006. On Marco Island, there is an equivalent number of high-end homes sales in the over $4 million sales price in year over year sales comparisons. Furthermore, the highest recorded sales price on Marco Island occurred in October 2007 for $9,000,000.
Another high-end area experiencing an increase in activity is the $1 million home market in Fiddler's Creek. In the past month, there has been five home prices over $1 million that went under contract (pending sale).
As we enter another season, we see an increase in buyers gravitating "off of the fence." Many offices in Naples and Marco Island report increased showings and activity. At year end on Marco Island, the total number of active listing decreased by 10% from December 2006.
Buyers, today, have the opportunity to choose from a greater number of properties, than in previous years, but as the current market trend continues, the availability of homes will diminish along with the selection.
Natalie Kirstein, MBA, is a Realtor with Premier Properties of Southwest Florida, Inc., direct (239) 784-0491, or e-mail NatalieK@premiermail.net. For the most comprehensive property search in Marco and Naples, reference www.MarcoLuxuryEstates.com
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