Posted on Wednesday, December 21, 2011
It is hard to believe the headline – Naples real estate sales increases joined by improvements in national building figures. Sounds like something from yesteryear. On the heels of the worst economic down turn in a generation we see Naples real estate sales volume increases coupled with yesterday’s report of an increase in new construction. It with great hope these trends set up a strong 2012 – not only for the real estate industry but for all the jobs which follow in a chain of economic activity when new homes go up.
First the national headlines. Yesterday Bloomberg reported “Builders broke ground in November on the most houses in over a year, a sign that the market is stabilizing heading into 2012. (Housing) Starts increased 9.3 percent to a 685,000 annual rate, exceeding the highest estimate of economists surveyed by Bloomberg News and the highest level since April 2010, Commerce Department figures showed today in Washington. Building permits, a proxy for future construction, also climbed to a more than one year high.” I like the permit part of this story – it shows the new building increase might have legs and carry forward in future months – we will see.
On the local level in Naples real estate we are seeing an increase in sales volumes – another indicator of a turning market. Through the twelve months ending this morning 8,281 properties were sold in the all Naples area (Sunshine MLS data) while 7,914 properties were sold for the same period twelve months earlier – a 4.6% increase. Now you might say 4.6% is not a lot to get excited about but remember the supply-demand piece we wrote a few days ago. If we continue to have declining supply and rising volumes there may be some real Christmas cheer on the way for 2012 – we will see.
Now the national builders point to permit increases as a sign these trends will continue and translate into more housing starts. Our equivalent leading indicator at NaplesBestAddresses are our customers – we have an increasing number of customers scheduling post January 1 appointments. More interested buyers and fewer properties – feels like things are OK in Naples real estate this morning – we will see.
Give us your thoughts and have a great Wednesday.
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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