Posted on Monday, December 19, 2011
According to Inman News and Lender Processing Services this morning foreclosures are again at all time highs. They report “The foreclosure pipeline has never been more crammed, with lenders attempting to push 2.2 million homes through the process as of the end of October, according to a monthly report issued today by Lender Processing Services Inc. Foreclosure starts jumped 5.7 percent from September to October, to 232,865, LPS said. But the report also showed significant improvement in the long-term outlook for foreclosures.
What impact does this have on Naples real estate right now? The best way to tell is to look at the balance of supply and demand. By looking at this balance we will get some feel what foreclosure levels are doing to the market and if demand is keeping up with the overall supply of properties.
As of this morning the all Naples inventory in the Sunshine MLS stands at 9.53 months with 6,547 properties for sale and 8,247 properties sold in the last 12 months. Pretty good. When inventories are less than twelve months markets are more likely to support prices than at higher inventory levels. The lower the supply the more chance for price appreciation. So at this point the national foreclosure statistics have not “flooded” the market, demand seems to be keeping up with supply in Naples and we will keep an eye on price behavior.
Please keep in mind supply and demand will differ by neighborhood. As an example, Royal Harbor, a wonderful community on Naples Bay sees 15 months+ inventory this morning. When showing buyers this neighborhood we coach them to be more conservative with their offers as we expect downward price pressure. For sellers here, we coach them to be more receptive of lower offers as they will not want to chase the market down. Will price behavior play out exactly as described here? Maybe, maybe not. But inventories as a measure of supply are an important overlay to buying and selling behavior so know your neighborhoods! And more importantly finding that “wow” property that is just right for you is THE most important factor when looking for Naples Real Estate.
So as we approach the holidays the all Naples real estate inventory level looks pretty good. Have a great week and good luck with your real estate work!
No legal or investment advice or suggestions are being given in this Blog. Actual real estate price and sales results are subject to market forces and are not completely predictable. Please consult a lawyer or investment advisor for such legal and investment advice. The writings of this Blog are intended for the sole use of our clients.
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
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