North Captiva Island Real Estate Market

So you might ask how the tiny undiscovered island of Upper Captiva (off the coast of SW Florida) has fared after talk of hurricanes, higher insurance premiums on the way, higher taxes, and with the island still in the rebuilding process from the devastation of Hurricane Charley in Aug 2004. Unlike many markets in Florida, North Captiva isn't showing large increases in inventory ( atleast not yet! ). I find it funny how many realtors remain as bullish as ever in these markets - do they not watch the MLS? As for North Captiva, the summer brought a wave of buyers who scooped up almost all of the lots priced below $200,000 ( you can see some of the current island inventory at http://www.northcaptiva.net ). After all, where else could you buy lots on a Florida island within walking distance to a beautiful beach for that price? Or even $50,000 higher? That is the key. As we enter the next phase of the real estate market - a much more difficult phase - you must look harder to find value. You will have to ask yourself this question: could my investment appreciate in a flat market that lasts for several years? To do that, you will need to one or more of the following things:
1) Pay the right price
2) Buy in an area with improving fundamentals
3) Buy in an area with good supply/demand characteristics ( one reason I like islands )
4) Buy in an undervalued and undiscovered area