The national and even local press continually reminds us that the real estate market is suffering and could get worse before it gets better. To make matters even worse, election years have historically been slow for real estate due to the uncertainty of tax ramifications. Throw in a war and rising gas prices, and you have the making for a very tough year in real estate. On Sanibel & Captiva Islands, however, we are having a positive “rebound” year with many sales.
Through the first six months of 2008, 120 single family homes have either closed or are ready to close on Sanibel. In 2007, the total number of home sales was only 142. The average sales price is $927, 685, down 19% from the peak in 2006. With condominiums, the story is similar with 73 closed or pending sales this year compared to 87 for all of 2007. The average price is $756,023, down 13% from the peak in 2006. In other words, there is still a great demand on Sanibel, and properties are selling if priced appropriately.
On Captiva, twelve houses have closed or are pending with an average sales price of $3,052,500. We are on track to close as many properties as we did in 2007. Condominiums on Captiva have finally started moving again with 13 closed or pending sales at an average sales price of $992,625.
Three factors spurring the activity in the market are the decrease in assessed values leading to lower taxes, the lack of storms leading to lower insurance premiums, and the shrinking inventory. There are currently 100 fewer homes on the market on Sanibel than there were in March of this year. Those buyers trying to time the market may end up finding that they waited too long and have missed the best buying opportunities. The savvy investors have moved in already and picked up some incredible deals at great prices.
The summer months have historically been slow due to the better weather “up North”, and I think the same will be true this year. However, those properties which adjust their asking price to reflect the current statistics will continue to sell even in the off-season. Only time will tell, but watch for our upcoming season in 2009 to be the beginning of our next real estate cycle. Sanibel and Captiva islands are truly special places, and the demand will always be strong!