Naples Florida Real Estate
Newsletter
February 2006

Pete & Karen Smith

   Pete...  Downing-Frye Realty, Inc.                                 Karen...  Vineyards Properties, Inc.
           petesmith@comcast.net                                                        karen@vineyardsproperties.com

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Market Conditions...  Much of the Naples real estate market has changed from a seller's market to a buyer's market. In many cases, the sellers are refusing to believe it, so we still have some overpriced inventory.   Inventories are very high when measured by historic levels.  Sales have declined over the last few months in part because the investors have dropped out of the market.  In 2004 and 2005 investors swarmed into Florida and drove up prices.  The investor was willing to pay anything being asked with the expectation that the prices would continue to go up.  All the media coverage on hurricanes hitting Florida and the projected housing bubble in Florida has played a big part in making investors gun-shy now about investing in Florida.  The negative press has also affected the mood of the non-investor buyers.  Some buyers are waiting with the hope that prices will fall.

A large percentage of the pre-construction sales in the newer developments and the lower priced condo conversions were sold to investors.   Many of those investors are now competing with each other trying to sell their condos.  In my opinion to purchase in this arena is very risky at this time.  Part of the reason for the high inventories is the addition of all the condo conversions and products that were sold pre-construction now being added to the market place.

If you are able to place things into proper perspective, you will see that we still have a vibrant market of end-user buyers, just as we have always had.  It is not unusual to see 50 or more properties going under contract daily in the Naples market.  Often, the best offerings will still sell quickly.  The Baby-boomer influx will continue into Florida for several years to come.  So, don't be misled by all the negative press about the market conditions.  Many properties that are well located and well priced are selling!

I would expect to see prices continue on the downward path through May for the generic properties.  By generic, I mean properties; especially condos that are similar to each other and plentiful.  However, I believe that the same communities with these generic condos will have specific condos that offer something a little extra that will cause them to sell quickly.  Those that will sell quickly might be the condos with the exceptional view, price,etc.  I would suggest concentrating only on areas that are within the Naples (Collier County) area.

In today's market, a buyer would be best served by working with a Realtor that has many years of experience in the Naples area. 

HMA...   Health Management Associates has contracted to purchase our local Cleveland Clinic.

Hotel conversions...   The Grand Inn Motel on Pine Ridge Rd. is converting to condos.  The pricing is expected to be in the $450-750,000 range.  The Inn of Pelican Bay is also converting to condos.  Also, the Staybridge in Bonita Springs is converting.

Registry Resort...   The Registry Resort has changed hands and it's name.  It is now the " Naples Grande Resort and Club".  LXR Luxury Resorts, an affiliate of Blackstone Real Estate Advisors in New York has acquired the hotel.  In addition they acquired the Edgewater Beach Hotel and the Naples Grande Golf Club.  The Registry name was changed to better reflect the association with the golf club.

Naples Philharmonic...   The Naples Philharmonic Center for the Arts has added " Dining under the dome".
They are offering 3 course dinners under the dome at the museum.  The dinners will be offered prior to most performances.

Restaurants...   Old Europe Bistro located on Vanderbilt Beach Rd.  Very casual European family styled restaurant.  Great Wiener Schnitzel.  Also, they will take reservations.  www.oldeuropebistro.com   Randy Fishmarket at 10395 Tamiami Trail North, across from Pelican Marsh.  Many selections of fresh fish.  Very casual. No reservations.  Get there early!

Special offerings...   A few properties worth special consideration.  Click here.

The Vineyards...   One of the finest communities in Naples.  Well located only 5 miles from the Gulf and with easy access to I-75.  Great conveniences at the entry to the project: Hospital, Publix groceries, restaurants, shopping.  The Vineyards has a 70,000 square foot country club with all the amenities you would expect including fine dining, casual dining, fitness center, tennis center and 36 holes of golf.  Condos from the $300s to over $1 million and homes and villas from the $600s to over $3 million.  Social, sportsman's, and full golf memberships are available at the club.  For more information from the number one expert on the Vineyards, click Karen Smith.

Pete Smith
Broker - Associate
Downing-Frye Realty, Inc. - Naples Largest Realty Company
239-304-1150                 cell: 239-370-2783
email: psmith@swfla.rr.com
www.petesmithnaplesrealestate.com
 

Karen Smith
No one knows the Vineyards like Karen Smith
The Vineyards Expert; selling exclusively in The Vineyards
Vineyards Properties
239-353-3393   cell: 239-860-6018   eve: 239-304-1150
email: karen@vineyardsproperties.com
                    www.petesmithnaplesrealestate.com/vineyards.htm