Many economists are touting the housing recovery as the main driver of economic growth this year. Once again Naples, Florida is leading the trend after having risen from the housing recession in January of 2012. Supply and demand will change the market from weighing heavily as a buyers market toward more stability. The differential between asking price and sales price has decreased dramatically with some homes seeing multiple offers and often selling above asking price.
This is something the market has not experienced in 6 years. Home sales have rebounded across the country to the strongest level in 5 years. Near record low mortgage rates, rising prices, and a drop in the amount of foreclosures and short sales have combined to lure buyers back into the market.
International Buyers Come to Naples
Naples has also benefited during the "off season" by Europeans diversifying their wealth instigated by a lack of confidence in the Euro. Resort style blue chip markets such as Naples have been the biggest benefactor of this.
In a Booming Economy, Everyone Benefits
Rental incomes remain high as demand has increased due to an overall improvement in the economy. Our restaurants, shops, and streets are filled with tourists from all over the world. The market has been helped further by builders looking to wrap up lots for future projects knowing that their current spec homes will not last long on the market. When developers build, it helps the whole market adding not just construction jobs, but also manufacturing jobs for the appliances and finishes for the new homes, which in turn drives overall consumption higher.
Other factors assisting the real estate market in Naples are increased taxes in other states and severe winter weather hitting the north while we bask in 76 degrees and sunshine. Since the season has begun in Southwest Florida, buyers have had to psychologically adjust to where the market has moved to over the past 12-14 months.
For many it has come as an unexpected surprise, with some neighborhoods having seen a 25%-30% increase in value over the past year. It seems that with every closed sale the prices are being substantiated. Consumer confidence is also up. Sitting my open house at 2331 Crayton Road I have had the opportunity to speak with hundreds of potential buyers. The attitude is one of acceptance with a bit of haste entering into the conversation. Realtors are left with little inventory and once a certain property goes pending there is a domino effect where every buyer who missed out on that particular property scramble to their second or third choice.
The Naples market is still far below the highs we experienced in 2006, which serves as some relief to buyers actively shopping for a home. Areas such as the Moorings, Aqualane Shores, Old Naples, and Port Royal still have some great opportunities available.
If you have interest in hearing about the best available property on the market please contact Adam Carriero at firstname.lastname@example.org or 239-641-3876.