Mortgage Applications Hit 9 Year Low
Nov 18,2009
A troubling trend has gone largely unnoticed in the housing market. The Mortgage Bankers Association said that the volume of mortgage applications for home purchases for the first week of November 09 bottomed out at their lowest level in 9 years. While many are talking about the extension of the home buyer's tax credit, the reality is that people who were going to buy because of the credit already did.
This decline in new mortgages also occurred during a period in which 30-year fixed-rate mortgages have been less than 5% for 5/7 weeks. 30 year mortgages averaged 4.91% for the week ending Nov. 12, down from last week's 4.98% average, compare that to the 6.14% a year ago.
Condo Sprinkler Upgrades
Nov 13,2009
According to a new state rule, all Florida high rise buildings and multifamily units need to be protected throughout the whole building by an "approved, supervised automatic sprinkler system" by Dec. 31, 2014. Of the 30 high-rise buildings in the city of Naples, 13 need to be retrofitted to meet the new standard and 2 buildings are in the process.
According to Naples fire Chief Stephen McInerny, high-rises have more than 7-9 floors, depending in on ceiling height. Condo associations face the decision to do a partial retrofit or total, making it a tough choice for condo residents as assessments come during a down economy.
Foreclosures Create Buying Opportunities in Golden Gate
Nov 10, 2009
The reason for the dramatic increase in sales of homes under $200,000 and $100,000 is that foreclosures are still near record highs in Collier County. Golden Gate is driving this trend with the median price being $91,438, a decrease of 34% from last year. However, the rebound in number of homes sold is considerable, up 64% year over year. The Golden Gate foreclosure statistics tell the story with 447 homes in the auction, pre-foreclosure, or bank-owned stage of the foreclosure process.
Take a look at the graphs below for these shifting sales numbers.
Collier County Unemployment and the Housing Slump
Nov 7,2009
The September unemployment rate in Collier reached a non-seasonally adjusted rate of 13.1% which is approaching the 20 year high of August 1992 which was 14.2%. For the week ending November 4th the average listing price in Naples climbed 1% to $733,373. However, the Median Sales Price from Aug '09 - Oct '09, year over year, dropped -30.9% to $171,450.
The median is obviously driven down by the high number of foreclosures for sale. 32% of the 11,677 homes on the market are in foreclosure. Unemployment is obviously a big factor in the foreclosure rate, so in the near term the prospects for starter homes and modest family homes doesn't look good in Naples.
Port Royal
Oct 25,2009
Having been established in 1959 for the residents of Port Royal(property ownership is require) the Port Royal Club is the premiere haven for wealthy seasonal Naples residents. Port Royal represents the best in Naples homes, being close to the Gordon River and enjoying pristine Gulf of Mexico water unsullied by runoff. Just along the exclusive Gordon Dr, owners of homes in Port Royal not only enjoy eligibilty for Port Royal Club membership, but they have access to the cleanest, most private beaches in Naples. The club offers 9 tennis courts, fabulous dining and a year round Olympic size swimming pool.
Naples Market Outlook
Oct 16,2009
Homes for Sale:Prices are still heading down in the Naples homes for sale market, especially as builders have completed many projects and are adding new homes to the already oversupplied buyers market. Prices went down another 3% last month, although prices do seem to be leveling out. The number of foreclosures coming to market continues to increase, going up almost 2% last month.
So Naples remains a buyers market however there are some neighborhoods doing better than others. Unfortunately, Pelican Bay, which is 90% condos has been seeing prices decline steadily. The median list price in September went down by almost 5% and the median sale price declined almost 8% as days on market continues to go up.
Beach Day at Pelican Bay South Beach
August 26,2009
I spent most of the day at the South Beach in Pelican Bay, just soaking up the southwest florida sun and relaxing. I found myself thinking about hurricane season and how intense it was to be here in Naples during Hurricane Charley in 2004. Like many people I decided to ride it out in my condo. The noise that the storm made as it pummeled the building and my shutters is unforgettable.
Being without power for 33 hours and using flashlights was not a major inconvenienc. However, going outside the day after and seeing furniture in the building swimming pool was a shock.
Naples Real Estate Sales are Rebounding
August 24,2009
Naples Real Estate Sales are Rebounding
- Home Sales in Naples in July 2009 exceed 2008 sales by more than 40%
- As foreclosures are cleared from the inventory, real estate prices are stabilizing
- Home prices in 2009 are back down to 2004 levels.
- Real estate listings have dropped by 30% as inventory levels decrease.
Reasons for Home Sales Rebound
- Naples' real estate price bubble has burst. Home prices are reverting to levels seen in 2003-2004. Buyers are realizing that with interest rates low and prices more reasonable, now is the time to buy a home.
- Locals are upgrading to their dream homes because they know that real estate prices are back to reasonable levels.
- Retirees wanting second homes are seeing their stock portfolios recover after the devastating stock market crash. This gives senior citizens, second home buyers and others looking for a piece of paradise confidence in home buying.
Naples Beauty and Charm vs Miami
June 18,2009
I drove my parents to Miami Airport yesterday and I was struck by the awful traffic and smog over there. I took PineRidge Rd out of Pelican Bay to 75, Alligator Alley, all the way across. The traffic on Pireridge was light, and the four lanes provided plenty of room for comfort and safety. The roads and surrounding greenspace are well maintained and groomed in Naples,with beautiful landscaping and palms lining the road.
Miami has a lot of the same landscaping on the roads, but the congested traffic,crazy speeding drivers and the smell of smog in the air really ruined the feel of the place. Also, the zoning laws in Miami aren't as strict as Naples, so many buildings abut directly onto roads and highways, ruining the ambiance.
When I came back, again along I-75, it was so refreshing to return to peaceful, well managed, clean, safe and sane Naples.
Naples Job Market and Home Prices
June 10,2009
Naples real estate is rebounding while jobs are still in a slump. This signals the continuing trend of Naples being a second-home, wealthy homeowners oasis. When the economy slumped in 2006, the housing boom in Naples and Collier County went into a slide. The loss of those home construction and home improvement jobs has really left a dent in the employment prospects for middle class laborers.
Financial employment in Naples is recovering, nursing and medicine have held their ground as has landscape labor. However, for the average middle class worker, Collier County is a tough place to get ahead. Many people have seen their home values erode to pre 1999 levels while at the same time their income has dropped precipitously. This double whammy has left those who drive the Collier County economy without much hope until housing starts increase again.
This bifurcated market shows up in the home sales prices. Home values dropped 21% in 2006, another 15% in 2007 and a whopping 20% in 2008.This means that since 2005 homeowners in Collier County have lost 46% of their equity. While many are describing this as a great buying opportunity, it is only an opportunity for those migrating into the area, who already have the cash and savings and don’t need a job to finance their mortgage.
Naples Area Real Estate Today
May 5, 2009
Naples, our little oasis in the sun, is proving again that we live in a special part of the country. In Naples, through March 2009, real estate sales recorded a full 30% gain over theprevious year. If we go back further in time, July 1, 2008, when the real estate downturn really took hold elsewhere, Naples Florida sales registered a 45% increase. Because prices came down during the downturn, people are buying in a more rationalized pricing scheme, and they know it. Therefore prices have been trending higher since the end of 2008.
