The real estate Mkt here in Naples has all but stopped is it ever going to come back and when?

Answer 1

Naples did the same thing most of Florida did. It over built and its prices were fueled by speculation. It will come back, but it will take years. The last estimate for South Florida I read is prices will fall between 10-15 percent until 2009. Then they will start to stabilize. If it is like our other booms and busts, prices will remain flat for a few years, and then start to increase again. However, don't expect the double digit each year escalation in prices we've had to repeat itself for a couple decades at least. This boom was nation-wide and people will remember it for the rest of their lives. We will not se this type of bubble again for decades.

Answer 2

One of the things that happened in Naples - which is GORGEOUS beach community - is that the area became SUPER desirable, and prices got so high that, first, the local working people could not afford to buy, and then second, the vacation home buyers could not afford to buy.

Then, the investors went away, because the numbers no longer made sense - they could not buy rental properties and then support them at the current rental income rates.

This is not unique to Naples - it has happened in many areas. But I used to live and work in Naples for over a decade, and this is what I saw.

Now that prices have adjusted, things are slowly becoming more affordable, and it if continues on this path, eventually it make more sense to everybody. And the sales will be back.

However, sellers in Naples (and other areas) need to let go of the idea that their house is worth what their neighbor sold for 2 years ago. If they really want to sell, they need to price their property at what today's market will bear.

And, the local business arena has to start paying its employees higher salaries so that they can afford to live there - or near there, anyway. Naples has a very small core of high end executive positions, but the majority of the workers make less than their counterparts in other States, or even larger Cities in Florida.

With the new announcement about the cut in federal interest rates, this will help people qualify for loans that they were not able to do so yesterday. However, the prices still have to make sense. And the salaries still need to support the local cost of living.

This is why Venice is becoming so popular. 1 hour north of Naples - same beach - drastically lower prices on housing, plus better paying jobs in nearby Sarasota.

Just my $.02

Answer 3

Don't believe everything you read in the newspaper. I'm sure some houses are still being sold and purchased.