Posted on Thursday, August 09, 2012
Traditionally more properties enter the market when supplies are down and prices rise – what if new properties cannot enter the market? What if many owners are “upside down” and cannot come to market? What then? Tighter supplies and higher prices maybe.
Readers of the blog will know Naples real estate supplies are down to 7 months + … a big improvement over the past few years and more supportive of prices. Prices have climbed modestly. So depending on specific circumstances we tend to coach buyers to be more aggressive when they see what they like and we tend to coach sellers to be more stingy when countering. But supplies may be tighter than we thought.
By some estimates 25% + of homeowners are “upside down” in their mortgages nationally. Unless they bring cash to the closing or their banks approve a short sale they may be unwilling to sell much below asking price or sell at all. So what? Well the so what is this is upside-down-in-my-mortgage-reluctance is going to put a further pinch on supply, perhaps more than we thought.
Traditionally you would expect more homes to come on the market in low supply markets with rising prices – maybe they just cannot come on the market because the owners are “upside down.”
This may be all a lot of “what if” and conjecture but there is one fact that has been bothering me which is supportive of this short supply idea – close to sell ratios are shrinking. This means the actual price the property sold for is becoming close to the asking price. Sellers may be sensing the shorter supply market and holding fast.
Keep an eye on supply in Naples Florida real estate. It may be a while before the big builders can lift supply levels with long development lead times. In the mean time the market keeps chugging along and supply is under attack.
What are your thoughts?
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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.
Some of the data relating to 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.
Mark Goebel, PA
REALTOR Coldwell Banker 5th Avenue South
Mobile: 239.595.3921
Email: mark.c.goebel@gmail.com
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