20% plus price increases, wow. Feels a little like the old days. What is going on in Naples Real Estate and what might we expect going forward in 2012?
In the Naples News this morning we find the headline “Naples homeowners can expect as much as a 10 percent increase in the value of their homes by the end of the year” Wow, now that would be nice and it seems like we are already beyond that figure. The findings in the Naples News are based on a national economist predictions at an economic summit yesterday. Yun – the economist – “… predicted as much as a 10 percent appreciation in home prices by December in the Naples market over last year.”
Ok, let’s take a look at the 2012 Naples real estate market so far, see how we are doing, and learn more about the sources of optimism.
First, just the numbers. Average prices started at $330,000 at the first of the year and are now at around $400,000 – up 21% so we are already significantly ahead of the 10% prediction. We know inventory is below nine months in the all Naples areas in the Sunshine MLS. Generally (not always) inventory levels below one year are supportive of prices and we may see an uptick.
What could go wrong? Well of course lots of things but the primary price deflators might be declining sales as we head into summer, more “shadow inventory” moving in to the market from banks with clearer more streamlined process (watch for the foreclosure numbers) and perhaps more unrest in the overall equity markets which sometimes leaks into real estate. Your particular area in Naples may not move as fast as the average due to a lot factors. We also expect more new construction further adding to supply/inventory from the big developers but this will probably be a 2013 impact.
We are off to a great start in 2012 Naples real estate which is great for everyone. Remember there is a measurable and real trickle down impact translating to more jobs and wealth when real estate heads up.
We will keep you posted on these trends and as always contact us if you have questions or if we can help.
Have a great weekend.
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No legal, investment, or tax advice is being given in this Blog. Consult with legal, financial and tax professionals before acting on any real estate transaction. Actual real estate price and sales results are subject to market forces and are not completely predictable. The writings of this Blog are intended for the sole use of our clients.
Some of the data relating to real estate for sale on the NaplesBestAddresses.com website comes in part from the Broker reciprocity program of M.L.S. of Naples, Inc. The properties displayed here may not be all the properties available through the MLS reciprocity Program. This information is deemed reliable but is not guaranteed. Buyers and sellers are responsible for verifying all information about their purchase prior to closing.
Mark Goebel, PA is a REALTOR with Coldwell Banker on 5th avenue in Naples, Florida with 35+ years of visiting and living in Naples. After 25 years at Accenture, Mark retired as a managing director and spends his time helping non profits and building a Naples real estate team with his wife Nan. Talk to Mark and Nan about life in Naples and why they chose this place to live full-time over all others and enjoy Naples real estate.
Mark Goebel, PA
REALTOR Coldwell Banker 5th Avenue South
Mobile: 239.595.3921
Email: mark.c.goebel@gmail.com
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