Are Property Prices in Naples Starting to Rise? (Lee: short sales, real estate market)

[lee]

Hi Guy's,

I wonder if you can give me any insight to the Naples property market.

We will be moving to Naples from England early next year (2010) once our green cards are sorted out.

I did'nt want to buy a property until we move Stateside but the realtor that I'm in touch with in Naples says that the market in this area is really starting to pick up and this years prices will not be available next year, what do you think?

We are looking to spend up to $275k on a single family home.

Any advice you can offer will be greatly appricated.

Lee

[nhkev]

When the media puts out it's real estate prices the most common comparison is year vs year. for example they will say housing prices were down again with a 18% drop feb 2008 to feb 2009. The problem with this it's comparing todays prices with that of 14 months ago and real estate markets are changing very fast. because inventories are down from 21 month supply to a 5 month supply yr vs yr, interest rates are down yr vs yr and foreclosures are down yr vs yr and volume is up about 100%. and new houses being built is close to zero . so in a market like this the things you need to track are month over month. The median home price leveled off around october of 2008 and has and will creep up. just like the stock market overshot and came back up to find it's equilibrium so "should" the real estate market but it is not going to be a situation where it is going to sky rocket again anytime soon due to raising unemployment , continued supply of foreclosures and some speculators that got great deals on houses that would be happy with a 30% short term rate of return that will flip the houses. If history has taught us anything it could be 8 yrs before prices retouch 2006 levels. In your particular case the price home you're looking at usually is last to return to value. it is usually distressed properties and starter homes that sell first because they are usually cash buyers and first time home buyers that do not depend on selling an existing house in order to buy so My opionion is the prices in the range you are looking at should only have modest increases, My advice is be patient and really know what you are looking for and if you find it buy it but if its not currently on the market don't settle just wait.

[lee]

Thanks nhkev,

What you sais is what I thought.

Lee

[lorig2727]

With the advent of foreclosures and short sales in Naples I believe the prices will continue to decrease. When you are ready to buy, then buy, don't allow the realtor to "panic" you into purchasing before you are ideally ready. I just purchased a condo in Naples and although the market is a buyers dream; realtors would say, "you better hurry and buy". In reality there is to much inventory and no need to rush.

[lee]

Thanks lorig2727,

I'm glad you said that as I would not feel comfortable buying a property until we are actually living in Florida.

Lee

[Kuota]

According to the Naples real estate market sales are on the increase for new family and established homes in the Naples area.

[mike8956]

I agree with the prior posts.. this market is not going to correct itself overnight.. the season will be slowing down... I have found the early fall seems to have some great bargains.. good luck.. I am also in the market.. awaiting patiently.... also how was the process for obtaining your green card.....

[nhkev]

just an idea... go to realtor.com and put in the price range you're looking for in naples and take note of how many homes are on the market check about once a month and track if the inventory is stable, climbing, or declining as long as the supplies are high prices stay low

[JudiPatooti]

I live in Naples and as someone said, the market slows down a lot through the summer and fall. It will pick up again slightly in December, but won't really get going again until January/February of 2010. You don't have to rush, the excess inventory is over 2 years now. You have plenty of time to look when you get here and will be much more able to decide what part of Naples you want to live in. There are many different types of areas and you'd want to give them all a look. That's impossible to do by internet or because a realtor is steering you to wherever he decides you should go for whatever personal motive he may have. IMO I think renting for a few months, which is easy to do here, while you really give Naples a good look would be the smartest thing for you to do. Using more than one realtor isn't a bad idea, either, especially in different areas of Naples (it's a very big area) because they all seem to have their favorite places.

That being said, investors have emerged once again and they are quickly buying up foreclosures in all of southwest Florida--like the same day they come on the market. Many of these houses are no longer in good shape, however. Stealing the pipes and fixtures, appliances, windows, doors, etc. out of the empty houses has gotten to be big business, I'm afraid. And, once an empty house with electricity turned off goes through a summer here you can forget purchasing it. Mold grows everywhere in it and it is unsafe for habitation. Do beware of these things when you do begin to look. I don't mean to frighten you, though. There are thousands of beautiful homes in beautiful neighborhoods waiting for a family to love it again here in Naples. And, most all of them will be still waiting for you when you get here!

[lee]

Thanks for all the responses guys.

Regarding the green card, I am eligible for one due to the fact that I have an American brother but it has taken 12 years. I think it will be about another 10 months before we get an appointment for our interveiw at the Embassy (they say patients is a virtue!) so that is why I did'nt want to rush into buying a property because alot can happen between now and then.

I enjoyed reading your post Judi, being a Naples resident you will obviously be intune with the market there.

Thanks again

Lee