It is possible that Naples Florida home prices could appreciate 30 percent over the next three years. For instance, Local Market Monitor reported last month that Naples Florida home prices could rise as much as 31 percent over the next several years. Fort Myers metro area was not far behind. They went on to say that the usual economic drivers, supply and demand, were not the only culprits causing the rise. Instead, they pointed to unpredictable returns on stocks and bonds, along with aging baby-boomers current low rate of return on cash investments. In addition, the Naples Area Board of Realtors also reported last month that prices were up 19 percent for the 12 month period ending September 2014, and inventory was down 17 percent for the same period. New construction is accelerating east of I-75, which should help balance inventory over time, but there is not much new construction in the most highly desired areas west of I-75.
The beach areas are especially busy and in-demand. For example, Naples beach area high rises contributed significantly to the run-up in real estate. The fact remains that the beach areas are still the most desired neighborhoods. The real estate sales numbers support this as closed sales in the $300,000 to $500,000 category increased for the 12 month period ending September 2014. The $1,000,000 and over category also showed a good increase in closed sales. Naples waterfront homes, also near the beach, had strong results last quarter, which is usually our slowest period of the calendar year. For example, let’s look at 3rd quarter 2014 pending sales of homes over $2 million. The category was up a big 26% over the 3rd quarter of 2013. Single-family homes by the water are frankly in-demand and many folks are buying older homes for lot value as tear-downs if they can’t find a suitable home. Unfortunately for those sitting on the fence hoping for a slow-down, Naples Florida home prices are not cooperating.
The real estate market here has clearly accelerated from a few years ago. But this is not bad news though for second home buyers that want to enter the real estate market today. Residential real estate prices are still expected to rise in the future, and buying now will allow for the capture of some very nice price gains and personal equity over the next several years. For investors, if fortunate enough to have the cash or access to financing, now is a great time to move money into the home or condo market here. If the predictions are correct, moving money out of stocks and bonds may be well-timed today. With the stock market near record highs, some think this could be a perfect time to increase real estate investments. In addition, we are in the very early stage of the boomer generation retirement cycle. Our prediction is that this one single fact will help continue the increase in prices well past the next several years.
Naples Florida Home Prices Expected To Rise 30% in 3 Years
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