Posted on Wednesday, February 08, 2012
CNN/Money reported they believe Naples real estate should be considered a top ten real estate turnaround market in the coming months. Let’s take a look at some of the facts and review their findings.
For those of you unfamiliar with the area Naples has a long history of resort living. For over one hundred years people have travelled here to enjoy this southern Florida destination. The early visitors worked hard to get here with no roads or trains available. They made the last part of their journey by boat to the Naples pier and frequently stayed at the old Naples Hotel in town. But why did they work so hard to get to Naples? What is so special about Naples real estate and why all this optimism for the future?
For starters the weather here is remarkable. We have not had a hard freeze by the ocean (ever! – by some accounts) due to the stabilizing temperature effects of the Gulf of Mexico. People like running around outside in January in summer clothing. It is liberating to be freed of the house and enjoy the outdoors. The sunshine lifts one’s spirits to escape those grey overcast up-north days.
There is more to do here these days. In the old days it was about beach life, some hunting and fishing and a wonderful evening social scene. We still have all of that but now we have many good restaurants, a philharmonic orchestra and broadway productions, a botanical garden, scores of non-profit opportunities to help others and stay active and sports – teams abound in golf and tennis and cycling – just jump in and find a spot to enjoy. There is no shortage of things to do. Chances to learn new things and expand your life.
Many find the state’s tax structure favorable. Homesteading and no personal income taxes make this place a nice option. Despite a very tough economy these past few years real estate prices increased last year and the availability of property is now at a five-year low.
Let’s not forget the demographics. With the aging out of the baby boomers most surveys says a significant number of the boomers will be on the move – selling their principal place of residence. Florida, along with Texas, are often mentioned as top destinations.
So enough about what we think – let’s turn to that CNN/Money article. They state the “Naples’ economy depends heavily on tourism and real estate development, both of which have taken a hit thanks to the recession and the Gulf oil spill during the summer of 2010.” True in part but remember the latest statistics THIS year – we are having a great tourist season with some merchants like Oakes Market telling us this is the best season they have seen in twenty years. A strong tourist season translates into more prospective buyers. Some of our clients fall in love with the area and end up buying a property while vacationing.
The CNN article does state “The tourists have finally returned … Visitor numbers rose 7.7% in 2011 compared with 2010 and they are spending more. “We are getting feedback from the hotels that they’re hiring folks back who were laid off in the summer of 2010,” said Wert. Jobs have been added at restaurants, shops and at area attractions, too.”
The low supply of properties is causing some of the big developers to start to build again (previously reported in the blog). The CNN article states “Custom home building in Naples is also staging a modest revival, according to Tuccillo.”
What I have not considered is the positive impact on the job market. I often think of Naples real estate as driven by “up north” buyers but there is a growing and strong local population, about one fourth of the total in season population. This group is faring better these days – thank goodness. The CNN article points out “All of this has amounted to a boost in jobs. Naples’ unemployment rate, while still high, fell 2.3 percentage points year-over-year to 10% in November.The better jobs picture has helped stabilize home prices, which are among the highest in Florida. The median price of homes sold during the third quarter of 2011 was about $185,000, 53% below the peak set in late 2007, according to the National Association of Home Builders.”
Well we will see how this all adds up for Naples real estate. We greatly appreciate CNN’s view of our future prospects. I hope they are right. So far so good.
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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 NaplesBestAddresses.com Facebook: NaplesBestAddresses Twitter @mcgoebel Naples Best Addresseses
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