Naples Florida Real Estate
Where We've Been And Where We're
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Most of my out-of-town
Buyers are sitting up north dreaming they were in
Naples. There’s been a lot of press over the past year
regarding real estate values in SW Florida in general
and Naples in particular. I thought it might be helpful
to hear from the front line.
The Year 2005 in Real Estate
was a wild ride indeed. Property values increased by 30%
and in some areas 40%. As Real Estate professionals, we
all predicted an adjustment by the end of this past
year. We welcomed an adjustment. Values were being
driven by a buying frenzy – mostly by the investors
looking for product to “flip.” The traditional buyer,
looking for a slice of paradise for personal use, was
going home discouraged due to the lack of inventory in
their price range – and/or being out bid by another
buyer for their Naples dream home.
I believe in the saying,
“You don’t know where you’re going if you don’t know
where you’ve been.”
Real Estate is cyclical.
Real Estate in “metro” Naples has a history of
plateauing after an appreciation spike.
Last year, inventory was
paltry – and buyer demand was strong. As of February
2006, inventory has doubled over the same time in 2005.
Is it a Buyer’s Market?
Not quite yet. Seller’s who have priced their
properties at prices derived by their neighbor’s selling
price plus some, are just getting used to the fact that
the party is over. It’s back to Real Estate 101. We have
to rely on the comps in pricing – and Buyers will have
the benefit of knowing that once again “comparables” do
come into play when making an offer.
Will Prices Crash in
Naples?
It’s very unlikely that Naples will experience a
real estate crash any time soon. There’s at least 10
more years of growth driven by the Baby Boomers, and
it’s not just people looking to retire either. With the
power of technology, Generation “X” is also exploring
relocating to Southwest Florida because they can
“telecommute” from anywhere.
Have Hurricanes Charley
and Wilma scared buyers off?
No. Hurricane Charley devastated our neighbors just
60 miles to the north of Naples. It was conventional
wisdom that prices would plummet up there – not so.
Values spiked along with Naples (relatively).
Hurricane Wilma hit closer
to home. We were heart broken to lose mature banyan and
mahogany trees that canopied neighborhoods west of US41.
However, Naples has the luxury of being a relatively
young community. Most homes were built or brought up to
codes put into place after Hurricane Andrew hit south
Miami in 1991. Wilma hit October 24th, and it’s now 120
days later; and to the first time visitor, there are
very few signs of Wilma. Blue tarped roofs are few – and
far between. Is
it a good time to purchase a home in Naples?
You bet! Buyers who purchased a home at the peak of
the market in 2005 for their personal use should have no
fear. Investors,
whose pockets aren’t deep, with the goal to flip
developer’s product will be ready to make a deal.
We presently have over twice
as much inventory as this time last year, so motivated
sellers will be ready to negotiate. Buyers working with
a Buyers Agent (look for the ABR designation) will get
all the appropriate information to make an informed
offer based on fact (comps) not fantasy. Mortgage rates
are still relatively attractive. Now is the time to buy!
“Don’t wait to Buy – Buy
and Wait.”
Real Estate should always be considered a long-term
investment. Property purchased for the longer term (5
years) will almost always serve you well. If you see a
property that serves your needs and speaks to your
heart, don’t waffle. It’s unlikely you’ll get it cheaper
another time. Make an offer! The worst that will happen
is you won’t get it. No one gets what they want sitting
on the sidelines observing.
Best of all, you can’t
duplicate our climate – not even 60 miles north of
here.
We are in a sub tropic zone located south of the 26
latitude. We enjoy a lush landscape not duplicated in
northern environs of Florida. The Naples/Bonita Springs
area continues to be the dream location that Boomers
aspire to. I have
referred to several sources to write this personal
commentary. There’s been much written in both our local
and state Realtors publications along with The Naples
Daily News. We’re in the height of season, and as
always, town is packed. April will be a perfect time to
visit Naples to explore purchasing your Slice of
Paradise.
24 February 2006
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