Posted on Monday, September 26, 2011
The force of supply and demand is now underway again in Naples. The lower inventories we have reported are translating into higher home prices. In the latest data this morning we are seeing a year-over-year price increase of 15.13%.
In addition to the hard numbers we are seeing other signs of a strengthening market. Some of our clients are looking at low interest rates and a strong rental market. One of our closings last week is already rented with gross annual rental income 20%+ of the purchase price. Taxes and upkeep will take a chunk of this but when you consider how you could leverage returns with historically low mortgage rates you start to see why this buying behavior is taking hold.