Monthly Archives: April 2013

Marco Island Market Update

MARCO ISLAND REAL ESTATE MARKET OFFERS A GREAT TIME TO BUY

MLS statistics, released by the Marco Island Area Association of Realtors® for Marco Island only properties compares first quarter 2013 with first quarter 2012 activity. According to Gerry Rosenblum, President, here is a recap of what happened in the Marco Island Real Estate market.

Sold single family homes UP 12.64% (98 vs. 87)
Sold condominiums down 6.95% (107 vs. 115)
Sold single family vacant lots down 21.15% (41 vs. 52)

Pending single family homes down 10.6 % (185 vs. 207)
Pending condominiums down 4.97% (210 vs. 221)
Pending single family vacant lots UP 4.1% (76 vs. 73)

Average Sale Price $536,649.36 UP 4.44% from 2012

Median List Price $425,000 UP 13.33% from 2012

Median Sale Price $385,000 UP 10% from 2012

Total Dollar Value of all real estate sold $136,308,937.00 UP 1.63% from 2012

Days on market 276 down from 320 (13.55%) in 2012

Inventory:
366 Single family homes (down 4.4% from 2012)
520 Condominiums (down 18.6% from 2012)
271 Single family lots (down 17.4% form 2012)

Summary:
While on the surface it appears that there has been a slight let-up in the number of sales, we must dig deeper to find out what is going on in the market. The answer is borne out by looking at the increase in the median list and median sale prices which are up 13.33% and 10% respectively.

These increases indicate two things: 1. Sellers are sensing that the real estate market is stronger and are asking more for their property 2. The lower end of the market has sold off and the bottom of the market, price -wise, is moving up.

Over the past year many buyers were entering the market as there were many good deals to be found either in distressed or highly motivated seller situations. Now that the bulk of these properties have been absorbed, it appears that sales activity will stabilize, and we won’t see large jumps from month-to-month.

With inventory at very low levels and an increasing median asking price, I expect a gradual increase in average sales prices over the next 12 months. It is still a great time to purchase property as mortgage rates remain at historic lows and lenders are more anxious to put deals together. The amount of end users seems to be on the rise as many realize this is their chance to get a piece of Paradise.

Low mortgage rates and your taxes

One of the drawbacks to low mortgage rates is that the total interest and property taxes paid for the year may be lower than the standard deduction. A little planning might be able to help you at least every other year.

Most homeowners know they can deduct their qualified mortgage interest and property taxes on their Schedule A of their 1040 tax return or to take the standard deduction if it is greater. See Your Deduction…Your Choice.

Deductions are taken in the year that they’re actually paid. If a homeowner paid their 2012 property taxes in 2013, they would not be deductible on their 2012 tax return. Then, if the 2013 property taxes were paid in 2013, both the 2012 and 2013 taxes could be deducted on the 2013 Schedule A.

By delaying the payment of the 2012 taxes until 2013, the combination of the 2012 and 2013 taxes might exceed the 2013 standard deduction and provide a higher deduction.

Other Schedule A expenses such as charitable contributions and medical expenses may be bunched also. From a practical standpoint, since most mortgage payments are due monthly, the mortgage interest would not be bunched.

This information should be discussed with your tax advisor to see how it might apply to your individual situation. The key is you must be aware of the strategy early to be able to use it.