Posted on Friday, January 20, 2012
Last night at the Habitat for Humanity charitable function at Waterside all the talk was about building affordable housing – the side discussions were about real estate developers building in Naples – the big boys may be back.
With inventories at 9.67 months (reported earlier in the week) we expect to see price support in this market. Now run some demand through this lower supply market and prices may continue to rise and follow their strong 2011 year. On the sidelines these past few years are some very patient, very well run real estate developers. If developers are still standing after the economic tests of the last few years we think they are pretty darn good. We also think they are gearing up again.
Building by Stock Brothers out at Lely is a real testament to the power of a good product priced well in a tough market. Sales continue, building continues and the business model seems to work. Our clients really enjoyed seeing the work at Lely. One of our friends is building a very nice larger home out there and those places at Ole are nice.
There is only so much land at Lely. Developers are surely watching Stock at Lely and saying – ok why not build something similar and design out our zoned land – let’s start pulling permits. I am especially interested to see how Sable Bay plays out – potentially a great development with properties right on the south end of Naples bay. I have a lot of respect for the Collier Family – both their building acumen and their willingness to give back to our community. Let’s see what happens here.
The new life in the Naples real estate developers seems part of a national trend. Two days ago Florida Realtor reported “Builder confidence in the market for newly built, single-family homes continued to climb for a fourth consecutive month in January, rising four points to 25 on the NAHB/Wells Fargo Housing Market Index (HMI). It’s the HMI’s highest level since June 2007.” This is not surprising given the cyclical nature of real estate, we expect some comeback here. What is surprising to some is right here in Naples we are back at it again. I think the builders sense a turn and I find it promising.
Florida Realtor went on to report “‘Builder confidence has now risen four months in a row, with the latest uptick being universally represented across every index component and region,’ says Bob Nielsen, chairman of the National Association of Home Builders (NAHB). ‘Policymakers must now take every precaution to avoid derailing this nascent recovery.’
9.67 months of Naples real estate inventory is low compared to levels in the last few years. Remember 5+ YEARS inventory in some parts of our town? Imagine some new inventory for our up north folks to consider – NEW construction geared to the size, shape and style of the current market. Should be fun.
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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