Is Real Estate Still America’s #1 Investment?

Market Update: Key Trends Continue

July's numbers tell a clear story about where our Marco Island market is heading. While inventory dropped to 8.67 months—the lowest we've seen since December—properties are now taking 98 days to sell, up from just 61-69 days earlier this year. This 60% increase signals that buyers have become increasingly selective, taking their time to find the right property at the right price. Meanwhile, sellers received just 92% of their asking price in July, the lowest ratio in our eight-month tracking period.

Perhaps most telling is that despite inventory improvements, the fundamentals continue to favor buyers. The median price of $1.165 million represents a recovery from May's low of $902,500, but the extended days on market and declining price ratios indicate that sellers who want to move their properties need to be competitive on pricing from day one. For buyers and investors, July's data confirms that patience and negotiation remain your best tools with properties sitting longer and sellers accepting larger discounts. One thing to keep an eye on going forward will be if inventory continues to shrink, and how that might impact market dynamics…

Real Estate Tops List of Preferred Investments 📈

According to the latest Gallup poll, real estate continues to be seen as the best long-term asset class to invest in. Notably, real estate offers key advantages in today’s economic landscape:

• Inflation Hedge: Real estate generally protects purchasing power as rents and property values can rise with inflation, a particularly crucial feature amid persistent global inflation.

• Tax Benefits: Investors benefit from deductions for mortgage interest, property depreciation, and property taxes, directly boosting after-tax returns.

• Portfolio Diversification: Real estate’s historically lower correlation with equities and bonds can mitigate risk and bolster overall portfolio stability.

• Steady Income Stream: Rental properties continue to provide stable, predictable monthly cash flow for investors.