Posted on Wednesday, February 11, 2015
(our favorite fish lady advertising her “deals” for the day)
Over the last week we met with buyers who were looking for a “deal” which they described as something like a great home at low price. Interesting. With so many sellers displaying properties online and 80%+ of all buyers starting online “deals” are quickly snapped up. “Deals” are not in plain view and buying them is certainly not something done routinely in a seller’s market.
You might say “well find me something not on the market, a so-called “pocket listing” only you know about.” Ok, those off-market opportunities are out there and we have a standing order for single family homes in some areas but the sellers know this is a “seller’s market” – why would they list “below market?” Better yet why would a realtor encourage a seller to sell below market? It is unfair to the seller and it lowers the agent’s commission.
Hmmm, how are we going to find a “Deal”? Well, let’s spend some time this morning figuring this one out and see what we come up with.
(one of the most spectacular homes we have sold – on the water and absolutely beautiful)
Beyond looking for a dream home with all the looks and features you crave there are forces which shape your ability to find that “deal” – and location is still the driving force. Real estate trends they “are a changing” here in Naples. The beach still challenges affordability but jobs, new construction, hot areas and schools are driving prices as well.
The search is a balance of course. Avoid the areas driving up the value and you find lower priced homes – but are they really “deals”? Depends on the buyer of course. If by “deal” the buyer really means “affordable” then by all means look to these areas. However if by “deal” they mean a low-priced home in a high-priced area then other methods are needed.
Home affordability is a relative term. We see the term used a lot and area rankings are frequently a comparison of mean income and home prices. Good so far. Too often I think we feel affordability is a challenge for someone else but affordability is a challenge for all buyers.
(buyers jumped at this listing of ours – a spectacular view of Napels Bay brought multiple buyers and competing bids)
So what? What has this got to do with me and my real estate decision? Well the old maxim location-location-location is driving home prices but in new ways you might not consider. Your “deal” will likely find its price driven by thes The most desirable locations still drive demand which shrinks supply and pushes prices up. But new factors like jobs and some old factors like the beach and schools work together to shape the Naples, Florida market.
So which locations are driving prices? Let’s take a look at affordability and review some of the factors driving home supply and demand – here is the short list:
Jobs – nationally the big driver
The Beach – traditionally Naples big driver
Hot Points – beyond beach-convenient areas other locations may catch momentum and Naples is no exception
Schools – Frequently a question on buyers’ minds
(even in a resort community jobs still matter and they drive prices)
Let’s look at jobs – the big driver nationally. The AP wire services provide a great article showing how great job markets seal their own fate as high home prices may curtail growth. Read the complete article at http://hosted.ap.org/dynamic/stories/U/US_HOME_AFFORDABILITY_ABRIDGED?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT. The article states “around the country, areas with the strongest job markets increasingly have some of the costliest homes. And areas with the most affordable homes lack a solid base of middle class jobs that attract workers.”
Don’t think jobs drive the Naples market? Ask all the folks working in the Gateway if they are willing to live further south deep in the Naples market or ask the new folks at Hertz if they would like to live further south. Not so much probably. Jobs, even in Naples, are driving real estate prices. As we add job-based residents to our population of seasonal residents – a good thing I think – get ready for more job driven home values.
(the beach is still a big draw here – particularly private beaches)
Then there is the all-powerful beach. Here in Naples the beach still trumps many other affordability factors. Just look at home prices in Old Naples and the Port Royal Peninsula and you get the idea. It gets more interesting. As you move yourself north and north-east from Old Naples you will see prices fall. Folks want the beach, they want Old Naples and some will pay $1,000 per square foot to own it. Those who wish to pay less start looking further away. Makes sense. That beach is driving a lot of value and limiting affordability for many.
Real Estate is catching fire in the north. Yesterday I drove up to Whole Foods and battled my fellow shoppers like it we were shopping for Turkeys on Thanksgiving. Few parking spots, jammed aisles and tested staff. Mercato is now frequently mentioned as an anchor to the north. Single family homes are selling here before they are built. Realtors will say “and you are only xx minutes from Mercato” as a sort of standard in their pitch in surrounding areas.
There are more hot spots still. Pelican Bay with its beach access and near-Old Naples location provides a nice market. Pelican Bay properties sold well all through the summer and into the Fall with some of the tightest supplies in town. Now in Pelican bay the least expensive single family home is listed for more than $1,000,000.
(new construction is driving price)
Another hot trend is almost any new construction site. New construction is capturing an estimated 50% of all new buyers here. Individual spec homes and builder homes with higher ceilings, new floor plans, new finishes at great price points challenging answers to resales right now. Our on-water homes in Royal Harbor and new construction in Tallis Park, Treviso Bay, and The Isles of Colliers Preserve are a few hot new construction sites.
With the average Naples homeowner age decreasing and more full-time families moving here schools play a role in home affordability. Buyers often ask us about the best schools in the area. As realtors we cannot steer folks to and from areas or comment on specific schools so we direct our buyers to a public website which provides school rankings. Please see http://www.greatschools.org/florida/naples/. Buyers care about these rankings.
So real estate trends they “are a changing.” The beach still challenges affordability but jobs, new construction, hot area and schools are driving prices in Naples as well.
Need help figuring it all out? Get with our team at NaplesBestAddresses.com and we will help you sort it out. Even though so many people have moved here in recent years there is still plenty of room left for you!
If you would like to know more about living here in Naples, Florida please give us a call at 239.595.3921. We have toured or owned property in Naples for nearly forty years and we are truly fortunate to call this wonderful paradise our full-time home.
Please 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.
We look forward to meeting and talking 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
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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.
We are pleased to announce a portion of our real estate earnings go to support the The Naples Botanical Garden, Habitat for Humanity Collier County, The Race For The Cure Citrus Ride, The Seacrest Country Day School and The Naples Winter Wine Festival.
Some of the data relating to Naples homes for sale and Naples real estate for sale on the NaplesBestAddresses.com website comes in part from the Broker reciprocity program of M.L.S. of Naples, Inc. The properties displayed here may not be all the properties available through the MLS reciprocity Program. This information is deemed reliable but is not guaranteed. Buyers and sellers are responsible for verifying all information about their purchase prior to closing.
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.
Contact us to learn more about Naples real estate trends, the florida rental market, Naples design ideas like coastal contemporary and transitional designs or just get a feel for the place like Naples Florida population trends.
About these ads
If you would like to know more about living in Naples, Florida please talk with our team. We have toured and owned property in Naples for thirty-eight years and know we can help you out. Give us a call at 239.595.3921.
Also remember the new edition of our eBook “Understanding Naples Real Estate” is now available making predictions for the 2015 Naples real estate market as well as offering up advice to sellers and buyers. To get your free copy go to https://www.naplesbestaddresses.com/offer/ .
We 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.
We are pleased to announce a portion of our real estate earnings go to support the The Naples Botanical Garden, Habitat for Humanity Collier County, The Race For The Cure Citrus Ride, The Seacrest Country Day School and The Naples Winter Wine Festival.
Some of the data relating to Naples homes for sale and Naples real estate for sale on the NaplesBestAddresses.com website comes in part from the Broker reciprocity program of M.L.S. of Naples, Inc. The properties displayed here may not be all the properties available through the MLS reciprocity Program. This information is deemed reliable but is not guaranteed. Buyers and sellers are responsible for verifying all information about their purchase prior to closing.
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.
Contact us to learn more about Naples real estate trends, the florida rental market, Naples design ideas like coastal contemporary and transitional designs or just get a feel for the place like Naples Florida population trends.
