Prices are through the roof
As Marco Island’s 2022 ‘season’ begins, the condition of the properties is absolutely fine as properties sell out faster than they can be admitted to the MLS (Multiple Listing System) and above asking price sales are becoming the norm rather than the exception. From a seller’s perspective, there’s only one downside, but it’s a big one – they’re running out of houses for sale.
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The market is “at a point where no one has ever seen it,” said Jack Winnik, president of MIAAOR, the Marco Island Area Association of Realtors. “It’s booming through the roof, and the lack of inventory is leading to a feeding frenzy.”
The reputation for “owning a piece of the rock” “causes problems for a lot of buyers,” said Winnik, who works as an agent for Keller-Williams. “We’re seeing bidding wars and a lot of angry buyers” who have been outbid, often after offering a home at full price or higher. “We’re used to measuring a quote by days on the market, but currently we go by hours on the market.”
Many houses, he said, will have five to seven showings on the first day they are listed.
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The MIAAOR year-end 2021 real estate report shows that the median home price is up 49 percent from 2020, the number of sales is up 17 percent, and the average days on the market are down 51 percent. The number of condos sold rose 42 percent and the median price rose 26 percent, with average days on the market down 40 percent from 2020. For land, the number rose six percent, the median price fell 29 percent, and the average days on the market fell 43 percent.
Significantly, while total properties closed at 1,434 were just 6 percent higher than 2020’s 1,434, total dollar volume sold increased 60 percent to approximately $1.8 billion.
Though that’s a moving target, 55 single-family homes, 53 condos and 75 vacant lots were listed in one day in January, said Mike O’Rourke, team leader of the Sandlin team with ReMax Affinity Plus. “It’s a highly competitive market and we’re not seeing any slowdown. Buyers know they need to act fast.”
“These are historically low inventories,” said Natalie Kirstein of William Raveis. “There is so much demand and not enough inventory. It’s a cash market, so we’re not affected by interest rates.”
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Real estate agent Jim Prange, a longtime agent at Premier Sotheby’s, confirmed the heated nature of the market.
“I just had a property that sold in half an hour for 20 percent over list price. We had 13 offers – all cash, no contingencies. So now there are 12 other people who didn’t get that house’ and are still on the market. As a seller, he said, “You can pick the best offer, so you better make a strong offer as a buyer.”
Again, Prange said the problem is finding homes for sale.
“Last year 842 condos were sold on Marco. As of January 10, there were a total of 50 on the island with 64 condominiums pending.”
With around 550 property sellers registered on the island, the number of agents could be shrinking, said Bill Filbin of Remax Affinity Plus.
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He had dinner with a couple he sold a house to 20 years ago, he said. “I told them what the house is worth now and she literally dropped her fork. We put the house on the market and sold it for full price in six hours, as is. If you price things right, they sell out in a day.”
Pat Wilkins with ReMax Affinity Plus had a stellar 2021, including a home that cost $10.5 million.
“I hit $105 million in closed sales last year,” he said. “I have $40 million worth of outstanding sales this year.” He didn’t know the numbers, he said, “until a week ago when my secretary was doing the numbers. I just keep my head down and keep plowing.”
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“We set records every week,” said Prange. “This has been a speculative market — flippers — but these buyers are users, and they’re paying cash.” People are leaving their primary homes in the north, perhaps keeping their vacation home, and coming to Florida as they realize they can work from anywhere.
“At the moment Marco is catching up a lot,” he said. Prices have increased significantly, but “we’re nowhere near Naples prices.”