Posted on Thursday, March 29, 2012
Scarcity is a primary driver of any product market and sooner or later this low supply stuff is going to support prices. We reported yesterday Naples real estate saw average price decreases, although minor, in just about every property class. There was one bright spot in in the condo market running along flat but the six month trend was steadily lower. Slight price decreases are disappointing with our lower inventory figures.
What’s the good news? Inventories have dropped further. For the first time in a while the inventory of Naples real estate has dropped below nine months supply. This morning there are 6,188 properties for sale and in the last twelve months 8,270 properties were sold equating to 8.9 months of inventory. Sooner or later lower supplies are going to support prices around here.
This morning CNBC reported on comments from Jamie Dimon, CEO of JP Morgan regarding price trends. First, full disclosure, I am a fan of Jamie Dimon. I know, I know there is not a love for captains of finance, or captains of any industry right now but I think Dimon is the real deal.
CNBC reported today Mr. Dimon had this to say “I believe we’re very close to the inflection point. People look at prices that are still coming down but all the other signs are flashing green,” Dimon said during a job fair in New York for hiring veterans.
Housing is more affordable and “the shadow inventory everyone talks about is lower today than it was 12 months ago. It will be a lot lower 12 months from now,” he said.
Distressed inventory “is actually coming down, not going up. Homes for sale are about half what they were four years ago. You could come up with a pretty bullish case. If the economy grows, housing gets better, quicker.”
Well ok, maybe this price decline thing is coming to an end. I hope we was a strong finish to the season and will keep an eye out for you.
Have a great day and tell us what you think.
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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.
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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