Know your local markets – like neighborhood by neighborhood. There are the watchwords in a recovering market. How is it some markets are taking off with double digit growth while others are still headed down? Let’s take a look at this.
Sometime this month, according to the Detroit Free Press, the old Packard Plant will come up for sale. Incredible. This place was making engines in WWI, planes in WW II and now no one wants it. It can be yours for back taxes. If you think this was some old inflexible American manufacturing plant doomed by old practices and inflexible workforces thing again – the Packard plant pioneered many modern manufacturing techniques.
In another marketplace things are much brighter. Some of the most modest little residential places in Naples, Florida continue to rise in price. Snapped up for $60,000 or less a year ago they now command $80,000. So what? Have your returns been over 30% lately? And that’s cash to cash, no leverage folks.
The bounce back in lower priced properties seems to be part of a national trend seen across many states today. Florida Realtor reported (http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=1&id=284452) “Lower-priced homes, which fell the most in price during the housing bust, are showing more zip as the housing market strengthens. In the 12 months through October, the nation’s least-expensive homes have seen prices rise 10 percent, vs. 7.6 percent for the most-expensive homes, market researcher CoreLogic says. ‘The lower you go, the better the performance,’
But what about the higher end properties? You know, those condos and single family residences people were falling over each other to buy with cheap money before the bust. Not so great. A look at the Sunshine MLS for the All Naples Area shows the $2,000,000 and up market is still hurting. There is an inventory of one and half years so take your pick and feel free to bargain. When the county in general is running along at seven months inventory or so, the high end inventory is almost twice as high! We would expect downward price pressure on the top end homes in the coming months at these inventory levels. Ouch.
If you think this wide ranging market variation is just a state by state thing think again. In several gated communities in Naples some STREETS are selling much better than others – less than one mile away in the same gated community. Real estate market recoveries are unevenly distributed!
The lesson again today? Buyers and Sellers need to know the local markets. Get with a good Realtor to help you sort it out. There are some wonderful offerings out there but in a rapidly changing marketplace be sure you are working with a Realtor.
If you have any questions just contact us and we would be pleased to help you. For National And Naples Fl real estate trends see our YouTube channel http://www.youtube.com/user/naplesbestaddresses?feature=results_main .. or register at http://NaplesBestAddresses.com.
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 NaplesBestAddresses.com Facebook: NaplesBestAddresses Youtube http://www.youtube.com/user/naplesbestaddresses?feature=results_main