“So, How’s the Market?” Real Estate Market “Getting Better” in Naples, Florida

Each day real estate agents are inevitably asked “So, how’s the market?”. Such a broad question is not so easily summed up into a neatly wrapped little package, but still so often we hear the response “it’s getting better!”. I return the question to you by asking “Are you asking as a buyer, seller, investor, or renter?” If you really want to understand the market, it is not in any way beneficial to think a generic answer is sufficient, let’s look at the market trends and see the real story:

Since the fall of the market in 2006, many investors and sellers have been a little apprehensive to place their properties back on the market. We watched as the prices of homes dramatically declined by an average of 52% over the course of a couple of years. While some savvy buyers began to take advantage of the market, the average person had lost all faith in real estate investments.  Banks and mortgage companies redefined what it means to “qualify” for loans and now we see an economy making a slow but healthy return to stability.

ImageA glance at the number of sales that occurred over the past 5 years shows the dramatic increase in confidence in real estate investments. It might have taken people a year or two to realize that the crash couldn’t last forever as we see the dramatic shift from 2008 to 2009. Confidence is returning at a steady pace, with over 9,930 transactions in 2013 alone.

As a result of the incline in sales we are seeing sellers begin to take advantage of the market as well. Although those who bought properties around the market collapse are still hesitant to sell, the rise in the number of sales are pushing more sellers into the market with hopes of regaining what was lost or even generating a good profit.

What is selling? We see the highest sales occurring in $150,000 to $200,000 – over 3,900 completed transactions in the last 12 months. Sales in the $250,000-$350,000 range are also doing well at over 1,400 transactions in the last 12 months.

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Naples, Florida is widely known for it’s high-end luxury real estate market and is still proving to be a popular choice to investors. Over the last 12 months we have seen 821 sales, all over $1 million each transaction. The highest priced home, beachfront with over 6,360 square feet in living area, sold for $16,460,500 (below it’s 18,999,999 asking price) in the prestigious Olde Naples Development. http://www.realtor.com/realestateandhomes-detail/1880-Gulf-Shore-Blvd-S_Naples_FL_34102_M54975-55794

There are, of course, many other properties available if you are a high-end investor. If you prefer to have your own private island paradise with over 100 acres of tranquil, tropical beaches and 6,486 square feet of living area in a spanish style estate home with private guest wing – then this Bokeelia, Florida home is waiting for you. http://www.trulia.com/property/3083872053-1-Little-Bokeelia-Is-Bokeelia-FL-33922

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In Naples, Florida it is safe to say that if you are looking to buy/invest you are running low on time before you miss out on the opportunities available. If you are thinking of purchasing real estate, I recommend that you put your procrastination aside and look for a good deal before you loose out on where we are clearly seeing the market heading. Not only are the number of sales increasing each year, prices are rising, close to list price ratio’s are stabilizing, days to sell are decreasing, and mortgage rates provided by lenders are still reasonably low. No, it is not too late to think about purchasing real estate; yes the deals are disappearing rapidly as sellers realize they can increase their asking price.

As for sellers: we have seen the largest growth in the price of homes than we’ve seen since 2005 (11.5%). For you, it depends on whether you prefer safe or risky investments, among many other details of the property you are holding. For

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the most part, we have far more buyers in the market than sellers, which gives you the advantage over listing to closing prices, days on the market are down (which means less time between listing your home and the final sale date!). It is a great time to sell if you are looking to move your property fast at a fair price. The longer you wait, the more saturated the market will become with sellers (who are realizing the market is yielding higher returns) and eventually prices will stabilize,  days on market will begin to increase, and selling your home then becomes a difficult task.

If you are interested in taking advantage of the real estate trends here in Naples, Florida I am here to help with your buying, selling, investing needs. With years of experience in closing sales and examining market data, I will assist you in taking advantage of the opportunities in today’s market.

Ashley Goodwin

Your Naples Area Realtor

RE/MAX Affinity

Naples, Florida

(239)450-5794