The Naples, Florida housing market has a solid start in the first quarter of 2016, is predicted to continue due to increased inventory, prices, and demand. Some fear the return of the pre-“bubble” years, although the factors driving the market are not the same as in the past:
- Southwest Florida mirrors the national market, as reported by realtor.com., with an April upswing in homes selling 7% faster than a year ago, and a median price increase of 9% nationwide. Low interest rates, increased employment opportunities, and a pent-up demand has motivated buyers.
- With low interest rates prompting new mortgages and refinancing, it has pushed ahead home ownership as an alternative to building equity with a higher net return.
- Many homeowners have come from being underwater to achieving equity allowing them to sell their property and purchase another. Also mirroring national trends, Southwest Florida foreclosure filings are below the pre-recession years. Foreclosures dropped over 27% the first quarter from the same period last year in Collier County.
- The increase in inventory has enabled the Naples housing market to reach a greater level of stability than in the past eight years, according to the Naples Area Board of REALTORS® first quarter market report. Overall, inventory increased 33%, which does not include all of the new construction homes that are offered by over 56 new communities in Naples/ Collier County, Florida.
- Builders are responding to housing needs in Southwest Florida, by supplementing the resale market with additional homes. Demand for housing continues since people are moving to Southwest Florida for employment or retirement, or are purchasing a vacation home.
Naples, Florida is a prime location for those seeking a laid back lifestyle and respite from cold snowy weather. Here you have some of the best beaches in the country, many varieties of home types and price ranges, plenty of outdoor/social/sporting activities, and perfect weather that has been hurricane-free since 2005. The nature of this area will continue to draw people and the businesses that support it. Hopefully, we will have “another good year.”