Naples Real Estate Update

Once again we had the distinct honor of having Cindy Carroll, Florida State Certified Residential Real Estate Appraiser, as a guest speaker at the Coldwell Banker monthly business meeting at The Naples Area Board of Realtors. Cindy came chock-full of good information and reliable market statistics. I would like to share some of the highlights of her talk, much of which is based on data derived from our local multiple listing system, and is a reflection of supply and demand.

One of the interesting points that Cindy made was to identify the 4 tiers of sellers in today's market:

1. Short Sales
2. Foreclosures
3. Investor "flippers"
4. Traditional transactions

It is relatively easy to extract whether a neighborhood is "in-balance" based on supply and demand. If the number of listings is equal to the number of sales in the last 12 months, it is a "balanced" market. In some cases, which I will discuss in this post, the absorption rate is less than a year. Any areas or price ranges, carrying 2 or more years of supply, are still experiencing downward pressure on pricing.

Another interesting point to consider is this: In Naples, approximately 60% of the closed sales are cash transactions. Cash buyers, especially with today's strict financing guidelines, allow our market to "move along". 

Here are a few neighborhood observations:

• Aqualane Shores: was at the "top of the market" in February of 2005 with less than a 4 month supply of houses on the market. In April of 2007 there was a 3.5 year supply. Currently there is approximately an 18 month supply, which has been virtually unchanged in about 2 years. Presently 37 "actives", 5 homes under contract [pending], and 21 closed sales in the past 12 months.
•  NA 06 [Old Naples]:  Presently there is only a 10 month supply of single family homes for sale in Old Naples. This area peaked in February of 2005 with a 5 month supply. In December of 2008 there was a 3.2 year supply. There was a "balance" market reported for the first time in approximately 4 years in September 2011.      
• NA15, the area between US 41 and Goodlette Road, is "on fire"! Currently there are only 26 active listings...27 "pendings" and 92 closed sales in the past 12 months!
• NA 05 [Coquina Sands, The Moorings and Park Shore]: In September 2005 there was a 6 month supply...In September of 2007 there was a 4 year supply! Today's inventory is only a 7 month supply! Great recovery!
• Pelican Bay is one of the least variable neighborhoods. It never really got "over-supplied", and never had the short sales and foreclosure numbers of other communities. In September of 2009 there was a 2.5 year supply, but the market has been balanced for awhile and presently there are 34 active single family homes, 13 under contract and 31 closings in the past 12 months.
• Royal Harbor has one of the best stories in town! Just to give you a history of the area, in September of 2004 there was only a 3 month supply...In April of 2007 there was a 9.6 year absorption rate...As Cindy put it, "it was dreadful!" By November 2010 the Royal Harbor area had improved to a a 3 year supply, which still wasn't great. Presently there are only 25 homes for sale, 16 pendings and 29 closed sales in the last 12 months. This equates to approximately a 10 month supply...a remarkable comeback!
• Vanderbilt Beach area: A year ago had a 2+ year supply of inventory, presently only an 8 month supply.
• Golden Gate Estates: NA 22, the Logan Woods and Oaks Blvd corridor, has been "artificially depressed" due to land values and the inability to finance vacant lots, but the single family home market presented itself with a shortage of inventory by November 2010, and today there is a very healthy 9 month supply!
• The Grey Oaks single family market is "a bit of a mystery"...In September of 2005 there was less than a 6 month supply. In October of 2011 there was nearly a 4 year supply. Currently there are 43 actives and only 14 closed sales in the past 12 months. 

The meeting ended on a high note. Predictions were made: Many neighborhoods will be back to our "last point of sanity", 2004 prices, by year's end. ~And, it is probable that values will go up 10% in the next 12 months! In any event, whether you are inclined to be optimistic or not, the facts speak volumes. Inventory is down in most neighborhoods, demand is great, interest rates are at record lows...The short sales and foreclosures are "clearing out". It's a great time to buy Naples Real Estate! Of course, as with any data, each isolated neighborhood, and types of housing in each area, should be evaluated on its own.  The Harris Peppe Team welcomes your comments and questions. Please call us if you would like additional information in a particular location in Naples. 239.370.0574

Thank you, and make it a great day,

The Naples Real Estate Blogger

Coldwell Banker's Latest Ad Campaign!

The Value of Owning a Home

Coldwell Banker recently released their 2012 ad campaign at the annual business conference in New Orleans. The creative agency selected by Coldwell Banker to head up this campaign is Siltanen & Partners in El Segundo, California. A very different approach to their marketing was adopted this year in order to play up the emotional reasons for owning a home. Personally, I have always felt that owning a home had more to do with those emotional connections and the memories that are created...those things which make a house a home. I've been selling this way for 31 years! In this day and age, when the idea of home ownership has taken such a beating, I believe it was a very good idea for the world's largest real estate company, Coldwell Banker, to play up these less-than-rational reasons for buyers to consider a home purchase today....Quite simply, people buy homes because they want to own a piece of the earth....they want to hang a picture, paint a wall, have a pet, plant a tree. Real estate agents who get this, who really understand the privilege it is to be such an intricate part of this process will always fair well, even in tough times.

The Harris Peppe Team at the Coldwell Banker Previews office in beautiful downtown Naples, Florida has always embraced this higher calling. "We don't sell 'bricks and sticks'...we sell a place where babies grow up, where backyard barbecues celebrate birthdays and graduations, where grandparents watch their grandkids to play & swim...We sell lifestyles." I'm in awe of this responsibility everyday.

Check out this video and let me know what you think. Oh, and tell me if you can figure out whose voice that is narrating! ~click here for the Coldwell Banker "Value of Owning a Home" ad.

Call us today if you would like to work with one of the agents on our team. We look forward to hearing from you soon and we hope to earn your trust and future real estate business. 239.370.0574

Thank you, and make it a great day!

The Naples Real Estate Blogger

Naples Real Estate-Old Naples Condo Update

Here is an example of what is presently happening in Old Naples....

So, we've had this one listing since January 2008....We began with an asking price of $499,000, which was right in line with the most recent closed sale at that time of $465,000. The property went on and off the market a few times over the years, while slowly chasing the market down, like many of the sellers...Numerous price adjustments later, and no offers; again in late 2011 the time had come to review the inventory and determine a list price for the upcoming season. It was the first time in a few years, when comparing the inventory to the closed sales, that we truly believed we had a "balanced" market. Taking everything into consideration, a list price of $299,900 was placed on the listing. This is a 1000 square foot 2 bedroom condo just a couple of blocks to the beach. Nothing fancy, no recent updating...But, it was turnkey furnished and had a nice community pool area and a lucrative rental history. Well, we got 4 offers last week on this listing, all within 24 hours of one another! Multiple offers? When was the last time you heard of "multiple offers"?

Currently there are 45 condos on the market in Old Naples priced at or below $300,000. Only 1 of them is listed as a short sale. In the past 12 months there have been 46 closed sales in this same price point in Old Naples...this is a very balanced market! And it's not just this price range; although this market segment still remains the driving force of our recovery in Naples...and of course, Old Naples is always very popular. Recently, I read that the "middle" price range of $500,000-$1,000.000 has seen a 29% increase this year over last year! That's healthy!

You should see the foot traffic on Fifth Avenue South! This place is bopping! Chip & I both agree that we haven't seen this much action downtown in a few years. It's exciting to be a part of all this activity.

For details or specifics concerning the Old Naples Real Estate market, please give us a call. There are still some excellent values available, and The Harris Peppe Team would be happy to assist you. 239.370.0574

Thank you, and make it a great day!

The Naples Real Estate Blogger

*information from SunshineMLS and is deemed reliable but not guaranteed.

The Language of Luxury

Chip and I took two new listings this week. In each case we were up against our 2 main competitors in the Naples Luxury Real Estate market. In both instances, the sellers selected The Harris Peppe Team because of Coldwell Banker's global reach, our technology and Internet presence, and the networking capabilities of Cartus Corporation, which manages the relocations of more than 140,000 customers annually.

Why do International Homebuyers choose Florida? *31% of all international homebuyers who purchased in the United States in the past 12 month chose Florida as their top destination. The reasons given are: Ease of ownership, Value, Location, and Lifestyle. In Florida, Coldwell Banker has 4,600 sales associates which are highly trained to help buyers find Florida properties that match a purchaser's investment, rental and vacation needs. Collectively, our associates are in 83 offices statewide, they speak 100 foreign languages and they connect with nearly 100,000 Coldwell Banker agents worldwide.

Our Internet presence is unmatched in the industry today. In addition to the 350 websites on which we feature our listings, we also have access to a 'rapid response' device known as Leadrouter, we are the most 'followed' real estate company on Twitter, and we've received over 25,000 visitors from 99 countries on our blog! We have partnered with REALTOR.com, Trulia, Zillow and Yahoo Real Estate, the four leading real estate search websites. To top it all off, sellers who list with us get their home showcased on Naples Real Estate.com, our very own website, on which you can search all active listings in The Naples multiple listing system!

If you or someone you know is thinking about selling a home in Naples Florida, you owe it to yourself to interview Chip Harris & Michele Peppe. The Language of Luxury sums it up best, "To the extent that incumbent market leaders rest on their laurels, do not stay focused or do not keep up with technology, market leadership is up for grabs for any real estate marketing professional with a superior proposition and the right brand strategy." We are dedicated to providing old fashioned service combined with state of the art technology. We look forward to hearing from you soon, and hope to earn your future business.

Thank you and make it a great day,

The Naples Real Estate Blogger

*according to the National Association of Realtors-2011 profile of international buying activity.

Coldwell Banker Previews International

• The Coldwell Banker Previews International program has been a world leader in the marketing of luxury homes since 1933. Previews was acquired by Coldwell Banker Real Estate in 1980. This exclusive program is the only program of its caliber in the world. Previews does not sell art, Previews does not sell antiques, Previews does not sell wine...Previews sells luxury real estate around the globe. The elite group of certified Coldwell Banker Previews Property Specialists make up about 8% of the Coldwell Banker agents worldwide. In 2010, these agents participated in nearly 14,000 transaction sides of homes priced at or above $1 million! The average price for luxury home transactions listed and/or sold by the Coldwell Banker Previews International program in 2010 was $1.85 million. On average, Previews handles $68.9 million in luxury home sales every day*!
• Ultimate Homes Magazine: "In 2010, Coldwell Banker was the only brand to sell one of the top 10 most expensive homes in The United States, 'Le Belvedre'...listed at $85 million. Previews has a track record of being selected to represent some of the world's most exquisite properties, including 3 out of 5 of the priciest homes in the U.S."
• Zillow.com: "3 of the top 10 homes that sold for $12 million or more in 2010 were listed by Coldwell Banker Previews International**".
• Forbes.com: The most expensive celebrity real estate in the US, 'The Manor', was listed by Coldwell Banker Previews International at $150 million***!
• Wall Street Journal: In a recent survey of Wall Street Journal subscribers, Coldwell Banker Real Estate ranked #1 among all measured real estate companies they would consider using for future real estate transactions****!

If you or someone you know is considering a luxury home purchase in Naples Florida, or if you are thinking of selling a luxury home, don't you owe it to yourself to interview the leading luxury real estate brand in the world? Please call a member of The Harris-Peppe Team today for a no obligation consultation. 239.370.0574

Thank you, and make it a great day! The Naples Real Estate Blogger

*data based on closed and recorded transaction sides of homes sold for $1 million or more as reported by the U.S. Coldwell banker franchise system for calendar 2010.

**Ultimate Homes Lists of Most Expensive Homes in the U.S. 2010 ***Zillow.com December 20, 2010 ****Forbes.com January 14th, 2011