Posted on Thursday, June 05, 2014
The Naples News reported home prices are going up over the next two years based on a report from Local Market Monitor. Please see the full article at http://www.naplesnews.com/news/2014/jun/04/Local-Market-Monitor-study-future-home-prices-swfl/.
We forecast price increases for Naples as well, but perhaps for different reasons than the news article which focuses on job creation and investment speculation. We would add demographics, like 8,000 baby boomers retiring daily in the United States, many of which move to warmer climates such as ours, recovering northern markets which allow people to sell and move out and supply and demand numbers. Big time supply and demand numbers.
Supply and Demand factors here in Naples continue to support higher prices. Most pundits would tell you any supply level under twelve months is supportive of price increases and we stand at 4.1 months (Matrix). These figures are for pre-existing homes. The inventory of new construction is estimated at 1-2 months! Please see our most recent view of this at http://nangoebel.wordpress.com/2014/06/01/naples-real-estate-grows-more-scarce-again/.
Given our boom and bust history we should keep an eye on the demand levels. Will demand continue in the face of these price increases? So far yes. Demand increased 17% in April and 12% in May. Healthy increases as season ends although the declining rate of growth is something to keep an eye on. Additionally we are well below past price peaks where prices were significantly above current levels. We have a lot of head room.
The future looks bright for Naples, Florida real estate price increases.
Want to know more about living in Naples, Florida? We have toured and owned property in Naples for thirty-eight years and know we can help you out. Please give us a call at 239.595.3921. Also consider reading our book “Understanding Naples Real Estate” to get you started on your real estate search https://www.naplesbestaddresses.com/offer/ or just give us a call about things to do here.
Hope to meet and talk with you soon,
Mark Goebel PA, Nan Goebel PA and David Goebel, PA
Co-Founders of the Naples Best Addresses team
Coldwell Banker Mark Goebel, PA and Nan Goebel, PA REALTOR Coldwell Banker 5th Avenue South Mobile: 239.595.3921 239.595.3920 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.
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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.
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