Naples home values will rise by as much as 10% by December 2012 said Dr. Lawrence Yun, Chief Economist and Sr VP of research for NAR, at the 2012 Economic Summit, A View from the Top, presented by the Naples area Board of Realtors - NABOR. This statement translates as, if you purchase a property in Naples in December 2012 you will likely pay as much as 10% more for it had you purchased the same property in December of 2011. Nationwide, Yun is calls for price increases from 1 - 3% by December.
Dr. Yun presented along with Dr. John Tucillo, Chief Economist for Florida Realtors, Dr. Shelton Weeks, Department Chair of Economics and Finance, Dr. Doug Duncan, VP and Chief Ecomist at Fannie Mae, and Cindy Carroll, VP for Carroll & Carroll Real Estate Appraisers.
Real estate is in recovery nationally and even more locally in the Naples area. Buyers are now stepping up as prices are firming up. Some of the hardest hit markets are now leading the recovery. First to crash, first to recover for the same reasons these markets became over heated so quickly during the boom. People want to buy real estate in certain locales and climates. Southwest Florida and Naples is certainly one of the most in demand.
Low prices and low interest rates lead to home sales. However, banks are still holding to very tight underwriting standards. So even though money is cheap and available, not everyone will qualify. If these standards are loosened somewhat, we could see an additional 15 to 20% increase in sales.
Tucillo believes that buyer perception is holding back increased sales from even higher numbers. People outside the state still think that Florida real estate is in trouble. They are wrong. Florida is now in a mini recovery.
NABOR just released the first quarter 2012 numbers and the inventory of available property has shrunk by 13% and new contracts written (pending sale contracts) are up over the same period last year.
Mike Hughes, VP and General Manager of Downing-Frye Realty, Inc., commented that the first quarter in 2012 was "one of the top five ever."
The information presented in this blog is a result of my attending the conference and what was reported in the Naples Daily News April 12, 2012 where you may find the complete article.