Market Update for Naples Florida Real Estate
Realty update for Summer 2010

" Be cautious about anything you see in the National Media about the Naples Housing Market "

Real Estate activity is starting to return to normal levels.  Yes, there are sales taking place!   Sales transactions in  2009 were up from 2008.  Asking prices have come down steadily over the last 12 months.  Many prices have come down as much as 20-30% off their highs.  Transactions over the last 12 months were really good, but prices were down.

You could say that we really have 2 markets within our marketplace.  We have a market made up of properties that are priced within the realm of reality and we have a market of properties that are priced at levels where there is little chance of ever selling.  There is a wide range of asking prices for similar ; almost identical properties.  Granted, interior features and views can vary the prices, but the differences in price are often way out of line.

Many similar condos with identical floor plans can be found in the same development at prices as much as10-20% more than identical units in the same complex.  It is not unusual to find condos for sale at $400,000 in some developments that have the same floor plan and that are almost identical to those that are on the market at $300,000 in the same project. 

The properties on the market at prices1020% higher than similar properties are the ones that make up the market  where there is little chance of ever selling.  A  portion of what is on the market in Naples falls into the overpriced category... " Little chance of ever selling " at those price levels.  The smaller part of our market is priced in the " Realm of Reality " and this is where the sales are happening.

So, why are there so many overpriced properties?

Typical Scenario:

400 Unit complex where 90%+ of the owners bought 8-9 years ago and paid $150-200,000 and 10 people bought 2-3 years ago and paid $395,000.   6 out of the 10 that bought 2-3 years ago are on the market for $350 - 420,000, while 3 others with identical units in the complex that paid far less are on the market at more realistic prices of $230-279,000.

Typical Scenario:

Speculators went wild 3 years ago buying anything & everything that was being offered pre-construction in new developments without any regard to prices.  Today, vast amounts of that type inventory is now on the resale market at prices higher than what you have to pay to get something comparable in a slightly older existing project.

Typical Scenario:

A not so serious seller becomes aware of an extremely overpriced property similar to his, so he places his property on the market at an overpriced level and hopes someone will fall out of the sky and buy it.  There are listing agents that will accept overpriced listings with the hope that the seller will drop the price later.

Typical Scenario:

Sellers that want to sell and have the financial ability to wait forever.  Often this type seller will price at the highest price that he has ever heard of for a similar property and he thinks that the market will someday come back to meet his price.  This type seller is very stubborn and he refuses to believe that he is overpriced even though identical properties in his complex are priced much lower.

So, What's a buyer to do?

As I indicated at the start of this update, sales are taking place and business is returning to normal levels.  Prices have fallen considerably over the last 12 months and there are good values out there.  You just have to know where to look and what the price should be.  Using a full-time Realtor with years of experience will help you to succeed with your search for the right property.

" I can help you to buy wisely "

Pete Smith

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