Real Estate Market Update – First Quarter 2012 – Naples, Florida

Watch on your mobile device >>

The first quarter of the year has turned out to be a phenomenal success!  We are reporting record sales almost entirely across the board but especially in the luxury homes market.  Who doesn’t want to own a piece of paradise?  In fact, that very fact is being emulated across several areas in the Naples vicinity with more and more people buying their dream homes.

Homes in the $1 to $2 Million Dollar Range

We are happy to report that this year we saw an increase of over 13% in this price range of properties when looking at the first quarter of 2012 as compared to the previous year.  This is a record increase in sales and we think this is an indication of what follows ahead.

Condominium Sales Begin Upward Trend

Though not as sharp an increase as we saw in the mid-level luxury home market, condominium sales went up 3% this year in the first quarter vs. the first quarter of 2011.  With much of the strong selling season still ahead for us in Florida, this is a good sign that we hope will continue on and increase as we continue on in the second quarter.

Sales For Properties Above $2 Millions Rose Significantly

Just as the other luxury homes in our market increased 13% year over year, the $2 million and above price range also experienced a 13% rise in sales this year.  The super luxury market is one that many investors as well as buyers eager to seize low interest rate opportunities are tapping into.

Increases in Sales Jumpstarts Shift In Market

One more trend that has been taking place is a shift toward fewer available homes on the market.  After being in the spotlight for years now, Florida is finally beginning to come back to a fairly balanced market with our shrinking inventory.  When you couple that with an increased demand for housing you end up with a change in the market toward the sellers’ direction.  What this means is that before interest rates get higher again and before inventory shrinks too low, now is a great time to buy!
~
For a customized look at your real estate needs, contact us today by email or phone.  We look forward to serving your property needs!

Moving Out? In Today’s Real Estate Market, Which is Better, Renting or Selling?

Watch on your mobile device >>

Contrary to what many experts, news media or analysts may have you believe, market conditions are not as bad as they are portrayed.  In some areas inventory is down, prices are up and the general consensus is a positive one, moving up in a positive outlook for the future.  But the question does arise when one is moving from a home – whether selling it now or renting it to hold out for a better selling price makes more sense.  Here we’ve put together some considerations that will help you discern which is the better choice for you.

Real Estate Is Always a Gamble, Now’s Not Any Different
There is no real way to tell exactly how the market will behave at any given time in the future but currently all trends reasonably point to both options being equally as viable.  If you opt to keep your home and rent it out, say for the next couple years or so, then there is a chance that prices will hit rock bottom and then begin to climb up again during that period.  However, there is also a chance that prices continue to plunge – in which case you would have been better off selling while a bit ahead of the game.

The main thing to keep in mind here is that even though things go up and down in the short term, real estate is a great long term investment and it’s fair to say that ultimately there will be a gain on your property value.

Buyers’ Market Today, Who Knows What Happens Tomorrow
So many indications of it being a strong buyers’ market these days make it seem that the opportunities on the buying end of things are endless.  However anything can change and it can change fairly quickly.  Take our current interest rates.  Though buyers have been used to seeing such historically low interest rates for some time now, if the government decides to raise the rates it will instantaneously change things.  Since buyer’s ability to purchase will be affected in a major way, prices will concurrently come down.

Heavy Foreclosure Inventory Appears to Dominate The Coming Path
Nationwide there are literally millions of foreclosure properties out there that need to go through the system.  As foreclosure and short sales flood the market, prices will plummet as a result of these distress sales.  In some markets this trend has crept into the upper-end niche of the real estate industry.

Why Renting Can Be Risky
If a homeowner rents out their property and while it is on rent the condition of the property suffers some damage – then they have negatively impacted the value of the home during a time when they had hoped for an increase in value.  This is the single biggest gamble when it comes to choosing to rent your home rather than selling it.

Also, there is no way to tell what the condition of the selling market may be when it comes time for you to decide to sell.

Consult With Your Realtor To Assess Your Options
Realtors deal with myriad situations on a regular basis and they also intimately know the statistics of your neighborhood and surrounding areas.  By consulting with a trusted and reputable Realtor in your neighborhood, you can gain ample perspective on exactly how your property might fare in today’s market conditions.  An informed decision would be made, given the factors at hand so you can be assured that your choice is the best as per your own situation. 

Is It the Right Time to Sell or Stay Put and Wait For Change?

Watch on your mobile device >>

These days so many homeowners are wondering if it’s the right time to move on and move up into a better home.  So many questions ensue. How long will it take for the market to be back to normal again?  Will today’s interest ratesgo on indefinitely?  How can I tell before they begin to climb again? If I wait long enough will my home’s value come back up to what it was just a few years ago?  The answers are not so simple but one thing is for certain.  Property values take time to climb up and rebound after bouts of the situation that we are facing at present.  Here are some pointers that will provide further insight as to why selling sooner may make more sense.

When Incomes Go Up – So Do Property Values

Many industry experts believe the only way for home prices to go back up is for buyers to have higher incomes.  Based on this assumption, a good number of homeowners’ expectations that their property will miraculously gain 20% to 30% of value on the market within the next year or so are sufficiently unrealistic. Keep in mind that the average annual income increase nowadays is anywhere from three to five percent, which translates to a waiting period of until at least 2017 before you will regain housing values from a few years ago.

How Long Will It Take For the Job Market To Improve?

As we find ourselves in yet another double dip recession and the nation is struggling to deal with the economy, the unemployment rates in many states continues to plummet or stay where it’s at; a dismally low level.  No one can say how long it will take for the job market to improve but analysts predict that though process will be slow it will happen.  

Interest Rates Are At “Go Get ‘Em” Levels

Being able to finance a home was much easier just a few short years ago but having said that the fact of the matter is that now, interest rates make up for the otherwise detailed and careful application and approval process.  While in the midst of a 30-year low, interest rates at about 4-4.5% clearly indicate this is a very good time to buy a home.  Of course, for owners of existing homes this can mean a loss on the property they sell but by moving into a home that will most likely increase in value in a few years’ time it offsets the loss.

Keep Living But Live Happier

Why not wait for the market to improve before selling your existing property and moving into another?  The return on investment can be significant when you factor in the changed interest rates regardless of improved property values.  Consider this: Sell an existing home for $200,000 today and buy up into a new home worth $320,000 at the current low interest rates, versus wait for 5-7 years to sell the home, which by then might be worth $220,000.  The interest rates by then to purchase the same new house worth $350,000 will be at least a couple percent higher.  The end result is about $12-$15,000 in savings by selling and buying sooner – and that many more years of happiness.

~

A few other things to consider are whether or not you are willing or able to maintain your existing home or would you prefer moving into a condominium or relocating to a warmer climate?  Would this be a perfect time to sell your property and invest in a dual home that can also be rented out for some additional income?  Also, how can you be sure your property value will not dip even further as you wait the market out?  Wouldn’t you want the freedom to at least be able to get into a newer home, at a great price because of the current housing prices? 
The best way to really know what steps to take is to contact your Realtor for an in-depth consultation and to learn whether now is the perfect time for YOU to sell.