Yesterday I did an interview for a podcast for Home Away on the Naples real estate market. HomeAway.com is a site that advertises vacation rental properties in resort areas. I was asked my opinion of buying real estate in the Naples market.
In order to prepare for the interview I did some research on March 25, 2008 to have an idea of Naples' current inventory. What I discovered was the following:
Condominium Ownership Properties
Active Listings: 5,680
Pending Listings: 442 From 1/1/2008-03/25/2008
Closed Sales 407 From 1/1/2008-03/25/2008
Average Price $565,635.00 From 3/2007- 2/2008
Based on the above numbers, Naples has roughly a 40 month inventory of properties in condominium ownership. This means that it would take approximately 40 months to deplete the current units on the market.
Single Family Ownership Properties
Active Listings: 6,329
Pending Sales: 384 From 1/1/2008-03/25/2008
Closed Sales: 380 From 1/1/2008-03/25/2008
Average Price: $798,075.00 From 3/2007- 2/2008
These numbers tell us that properties in single family ownership have roughly a 45 month inventory.
People keep asking me if I think the real estate prices in Naples have finally hit bottom. My crystal ball is always a bit cloudy but what I can say is that you have to think about all the factors that go into racking up such a huge inventory of properties.
Everyone has heard about all the investors who purchased and thought they were going to "flip" their real estate investments. They got caught with their properties when the market changed.
Another factor that is not talked about is that the Naples area has a number of sellers that have the financial wherewithal to wait out a slow real estate market. These sellers put their home up for sale and help inflate the number of active listings on the market because they can wait to get the price they feel their home is worth. Their home might not be sold this year or next year but they can wait for their price.
I would say to any seller today, "If you do not HAVE TO sell your home, do not put it on the market." A savvy buyer with his Realtor's help will know market price. No matter how emotionally attached a seller is to their property, the market sets the price. I have personally turned down more listings in the last year than I can EVER remember turning down in my career.
Perceptions are that buyers are sitting on the fence waiting for the market to drop further. If you are that buyer, I would say to you, "GET OFF THE FENCE"! There are some incredibly good buys out in the market right now in great locations. Should you continue to wait, those good buys are going to be long gone and there will be less of a selection for you to choose. I would advise that you to try to purchase as large as a home you will need. Today's prices will be better for larger homes than 5 years from now when you'll need that larger place. I can truly say, "IF YOU BUY IT, THEY WILL COME".......and more than likely stay with you.
Naples is a beautiful area that offers many fine communities to live. Why don't you check Naples out today?
ContactUs Think Lynn Wilber when buying or selling in SW Florida !!! Downing-Frye Realty, Inc. is a Florida licensed real estate brokerage