Posted on Thursday, May 03, 2012
Two years ago in Naples we dreamed of real estate “shortages” – foreclosures still swamped the market, prices were falling and we were looking of the bottom. Today inventories are well below nine months. A rather spectacular 14%+ increase in volume since January 1 and fewer homes entering the market has added up to a run off in supply. Buyer competition is increasing. No worries, here come the developers.
Naples News reported Naples construction is on the resurgence. They report “In the first quarter of 2012, Collier County government issued 297 permits for new home construction, the busiest first quarter at the county permit counter since the numbers bottomed out in 2009. The county issued about 670 residential permits that entire year.” What does it all mean? “The 2012 numbers so far are building on a 10 percent increase in residential permits between 2010 and 2011, according to county figures.”
Not bad – a 10% increase in new permits. But if volumes stay above 14% growth rates we are going to need to pick up the pace further. One rumored market response is a possible increase in foreclosures again. With the legal world gaining clarity, new processes approved and an alleged bank impatience with short sale progress we may see more outright foreclosures in 2012. We feel for those folks in foreclosed homes – many of them innocent of the recent real estate shenanigans – but foreclosures will relieve dwindling supplies
What does this all mean for Naples buyers and sellers? Buyers should be ready to buy that favorite place when they see it (pre-approval financing and few contingencies) because at lower supply levels we should see more buyer competition (see yesterday’s blog). Seller’s might begin to smile as the tables are turning somewhat, but beware of big new construction projects near you as new construction may be an attractive alternative to your place.
And one last thought. New construction permits are good news. New permits mean new jobs. New construction job wages “trickle down” right here to many in the local economy. Just what we need to see.
Have a great day everyone and keep an eye on those inventory levels.
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: firstname.lastname@example.org NaplesBestAddresses.com Facebook: NaplesBestAddresses Twitter @mcgoebel Naples Best Addresseses – Where The Best Address in Naples Real Estate Is Yours