We have heard conflicting stories about a “bubble” bursting in the Florida real estate market…Much of this market is being driven by demand, which we don’t think will stop anytime soon. Florida is seeing an influx of new permanent residents from the NE and Midwest, as usual, but additionally Californians are migrating to the Sunshine State. We’ve had several sales pend “sight unseen”! Our market is hot and we don’t see a cooling off anytime soon.
The rise in prices is compounded by the new construction labor and material costs increasing. Many new home communities have implemented building moratoriums as they wait to “catch up” with the demand…Buyers are waiting for lots to be released.
The low interest rates cannot be sustained forever, and will likely go up, but we are told not before the end of the year! Keep in mind, getting a mortgage today has become very difficult [see featured image]. We don’t see the foreclosure and short sale percentages anywhere near what the market experienced in 2006-2008. Some homeowners in the lower price points may have difficulty paying back “payment forgiveness” that the pandemic created, but that is also not prevalent in Naples. Another thing to consider, a purchase price of $500,000 with 20% down at 3% vs. a $500,000 purchase at 5% interest is a difference of $500 per month! All more reasons to BUY NOW and not wait!
The Naples Real Estate market it on fire! Call us today if you are thinking of selling; take advantage of the low inventory and maximize your profit…Or, if you or someone you know is considering a permanent or vacation home in Naples, we know this market and we are standing by the help you make the best decision!
Please call us: 1-239-250-4370
We look forward to hearing from you soon and we hope to earn your trust and future real estate business!
The Naples Real Estate Blogger