Posted on Wednesday, November 05, 2014
Even country clubs in Naples are doing it again – borrowing. Well why not? Isn’t this the idea of government supported low rates – encourage folks to borrow and spend and boost the economy? You betcha – get the economy going again by providing “cheap” money so folks can buy new things. Should you be thinking about real estate?
When we look back on our forecasts for 2014 we did pretty well – lower inventories, steady purchase volume and significant price increases as the Naples real estate upward cycle continued. However interest rates stayed low, very low in fact. As we said in the 2014 forecast we are Realtors not financial professionals and you should consult with a financial professional when looking at financial markets – but boy oh boy we thought rates would rise.
Now it looks like we are going to see rates stay low for a while longer. Sure the Fed could pull its support and maybe rates would rise to increase demand for bonds but who knows the timing of that one?
Reuters reported we will probably see low rates for a while in their recent article at U.S. consumer prices rise on shelter costs, but inflation muted. So where does that leave us in Naples real estate? Low mortgage rates is where it leaves us. Not quite the “cheap money” days of yesterday but many buyers are seeing these low mortgage rates and rising real estate prices, doing a little math and realizing financial returns over these last few months have been pretty darn good. Plus you will own a place in the paradise of Naples, Florida if you write that contract.
Should you be buying here? Only if you find that perfect place for yourself, the one with the “wow” factor, the one you will love through the crazy ups and downs of this real estate market.
I am thinking about the offers we wrote just this past month and see renters buying and turning into home owners and other buyers selling their smaller place and moving up to a bigger place in the same community, or buyers moving across town to their new place – all at cheap rates.
And these are just the conventional home owners. What about the investors? Many of the “flippers” and spec home builders are very pleased with the cheap rates and jump in Naples real estate prices. However we may be victims of our own success as the price increases limit opportunities to make it work again. We all have a “go/no go” spreadsheet to help us sort an investment property decisions and more and more the numbers say “no” as prices rise.
Now that season is here and we buyers are moving into full swing these low rates may help fight the higher prices. Folks are buying big time even with the most recent price run up . Judging by the numbers of people, great cars, evening social events, and “save the date” emails Naples is really rolling.
There are many real estate and lifestyle options here in Naples, Florida If you would like to know more please pick up the phone and call the Naples Best Addresses team at 239.595.3920 (Nan), 239-595-3921 (Mark) or 239-285-2038 (Dave).
I would also encourage you to download a eBook “Understanding Naples Real Estate” https://www.naplesbestaddresses.com/offer/ to get you started. Visit us as well at NaplesBestAddresses.com.
Hope to meet and talk with you soon,
Mark, Nan and Dave Goebel PA’s
Co-Founders of the Naples Best Addresses Team
Coldwell Banker Coldwell Banker 5th Avenue South NaplesBestAddresses.com Facebook: NaplesBestAddresses Youtube http://www.youtube.com/user/naplesbestaddresses?feature=results_main
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. We are pleased to announce a portion of our real estate earnings go to support the The Naples Botanical Garden, Habitat for Humanity Collier County, The Race For The Cure Citrus Ride, The Seacrest Country Day School and The Naples Winter Wine Festival. Some of the data relating to Naples homes for sale and Naples 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. Contact us to learn more about Naples real estate trends, the florida rental market, Naples design ideas like coastal contemporary and transitional designs or just get a feel for the place like Naples Florida population trends.