Being a Realtor in Naples these past few years is something like an E-Ticket ride at Disney World.
Before the ride there's great anticipation and joy.
During the ride there are G-forces, laughs and stress.
One thing's for sure an E-Ticket ride at Disney World doesn't last long but that's not the case for the Naples real estate market.
The meteoric rise in demand and prices lasted about 4 years.
The fall in demand and prices is lasting longer.
The old adage of "What goes up must come down," is still alive and well in Naples but no one saw a CRASH coming.
In general, the average sales price is about half of what it was at the peak.
There are always exceptions but half is a fair assessment. (Does that mean it takes twice the transactions to make the same commission as before?)
Coming from a career in marketing I would repackage it by saying, "The affordability factor in Naples has shown a huge increase!"
As with everything the principle of "Cause and Effect," is at work here.
Affordability in Naples has greatly increased at the expense of the Seller's.
Buyer's like the new Affordability factor but are worried about their jobs, the economy, rising national debt and the volatility of their retirement nest eggs.
Buyers are stressed
All the above lands on the "Welcome" mat of the Realtor.
If the Realtor tells a prospective Seller what the property is really worth the next sound the Realtor might hear is the door hitting them in their rumps on their way out.
Sellers are stressed
Buyer's used to be fun to work with because they looked at a few properties and bought one. Today, they look for a couple of years and find fault in everything.
The few that actually buy and need a mortgage are now facing a plethora of new rules and restrictions brought on by Fannie Mae and Freddie Mac. http://www.freddiemac/ and wwwfanniemae.com
It's almost like Freddie & Fannie have a quota of 15 new rules a week!
Mortgage Consultants and Mortgage lenders are stressed.
At the end of the day who's lap does it end up in?
The Realtor!
Realtors are stressed
So what is the solution?
If I knew the answer I wouldn't be writing blogs, now would I?
However, it's always a treat to look into the famous crystal ball for a glimpse into the future............................................................................................................................................
- THE OLE CRYSTAL BALL SAYS:
- High unemployment continues
- National debt continues upward resulting in raising taxes
- Several states and cities go bankrupt
- Congress continues the status quo of taking care of themselves instead of our country
- Fannie Mae & Freddie Mac continue to bleed red taxpayer ink
- Foreclosures & Short Sales continue
- Shadow foreclosures come out of the closet
- ARM's adjust to higher rates
- Realty brokers continue to preach and support the old business model
- Realtors continue to follow their brokers' old business model
Bottom line is the Stress will continue for the foreseeable future.
Did you know Doctors say some stress is good for productivity?
But exactly where is the line between good stress and bad stress, eh?
Maybe it's time for me to take up fly fishing. www.mangroveoutfittlers.com/
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