The real estate market on Sanibel and Captiva looks good but with some hesitation. Unit sales have slowed down a bit this year but dollar sales are very strong. The dynamics of the market show that while actual unit sales are down they are up in relation to the available inventory. The market is selling a higher proportion of new inventory this year. So if there's a market weakness it is in low inventory rather than low sales. Overall, the market is positive.
Unit sales of condominiums have declined versus last year by a little over 10% (YTD 7/31). But, the average selling price has increased by over 15%. Fewer buyers (because there is less inventory) who are paying more. They must clearly see the value of owning a condominium on these paradise islands. The trend from smaller to larger condo units is continuing. The one bedroom unit sales are down 22%; the two bedroom units are down by 11% and the three bedroom units are up 5%. It looks like people want more space.
Single family houses are running pretty close to last year in units sold (YTD 7/31). Most of the strength is found in the moderately priced homes away from water - the near beach and inland houses. The high value homes that are on the water - those either on the gulf, bay or canal - are down. But, the average dollar sale is up for all homes. That means that the price of real estate is going up, as it is in most parts of the country. That's good news for those who have interest in selling their property. They will probably realize a good return.
As we approach build-out on Sanibel, and have just about reached it on Captiva, the availability of lots has become more limited... And that will continue. The average selling price is also down. This is probably due to the disappearance of lots on or near the water to be sold. In any event, whether your lot is on the water or away from the water, it can't be very far from the water on this island paradise.