"Recovery to Normalcy"

Today I had the distinct pleasure of being in the audience and listening to Dr. Lawrence Yun, Chief Economist for The National Association of Realtors. He spoke for nearly two hours. In addition to the 7 pages of copious notes that I took during his lecture, I will eventually have access to his power point presentation, as will all those who were in attendance. This will also include his charts and graphs, which I will share a link to at a later date. Some of this may lose a little bit in the translation without those graphs, but I will do my very best to post a few of his top talking points and statistics that I believe will be of interest. Although Dr. Yun's presentation was seamless, my recap likely will not be. Obviously, the seminar included many statistics and graphs charting the United States economy and Home Sales, but I will try to concentrate on those topics which will effect real estate values locally, here in Naples.

Here are a few:

• The present population of the state of Florida is approximately 18 million. This is projected to double in the next 20 years.
• If the pattern of new jobs created in Naples, as documented in the past 20 years, were to stay on its same pattern, not withstanding the short term fluctuation of 2008-2010, jobs in Naples will also double in the next 20 years.
• The "normal" migration to Florida, particularly the huge number of baby boomers, among them the more comfortably wealthy, will begin to increase again in 2011. [more people left Florida than entered in both 2008 & 2009-and 2010 was virtually even.]
• Newly built inventory in South Florida is at a 40 year low. New housing start permits in Collier County numbered about 1,000 per year for the last 3 years vs. an average of over 6,000+ in the previous 4 years.
• Currently, the cost of constructing a new home is higher than buying a newer resale. Buyers wanting newer homes will have to buy resales in most cases.
• Upcoming tighter mortgage regulations as well as the expectancy of home loan rates increasing in 2012 will prohibit some buyers without cash from purchasing.
• Nationwide, there have been no meaningful changes in Home Price Trends, they have gone 'sideways' for approximately 12 months. However there are some "wildcard" markets that may even see a 10-15% increase in prices after the 2008-2010 over-correction. Naples fits into this category!

Overall, the outlook was very bright for Florida, and specifically a recovery in Southwest Florida! Dr. Yun also touched on the influx of foreign buyers coming to Florida, consumer confidence levels, unemployment, business investments and commercial real estate, mortgage defaults and governments bail-outs.

Dr. Yun ended the seminar with two quotes, and this discussion: The countries in the world that prosper are those which encourage and support home ownership. He spoke from the heart of his own memories of his birth country, South Korea--the fact that the one true thing that separated the ideology of his homeland and North Korea was home ownership. He compared this to a current news maker and mentioned the fact that 90% of Egyptians do not have title to their homes. He said he believed there had been two 'transformational' Presidents in our modern history...and these were the quotes:

"A nation of homeowners is unconquerable." ~FDR

"We will preserve the part of the American dream which mortgage interest deduction symbolizes." ~Ronald Reagan

Thank you for your time. Make it a great day,

The Naples Real Estate Blogger

Global Connections

Coldwell Banker and The Harris-Peppe Team open homes to the world in 50 countries, on 6 continents...and our network keeps growing and growing! The Coldwell Banker brand is known worldwide. In addition to our global network of over 106,000 agents, in 3,500 offices in 50 countries, we are also a member of FIABCI, The International Real Estate Federation. This uniquely positions us as the leader in international real estate brands.

Savvy international buyers recognize that NOW is the perfect time to buy their Naples Florida dream home. Because of correcting real estate prices, Florida Real Estate is on sale like never before! During the 12 months ending in the first quarter of 2010, it was determined that 4.45% of the total U.S. Residential closed transactions were to foreign purchasers. That number is closer to 23% in Florida, nearly 1 in 4 closings! Canada leads the way contributing to 35% of the international purchases in Florida. Coldwell Banker has over 250 offices in Canada. Our personal incoming international referrals have increased over 150% in the past 6 months. More agents, especially those in the Ontario Canada offices, are sending leads our way. Whether you are a buyer or a seller, working with a team and a company that offers this global reach is of utmost importance. Chip is originally from Canada. This connection is invaluable when working with Canadian buyers, and helps him considerably in understanding first hand the challenges and obstacles that could face an international buyer.

The Harris Peppe Team is committed to broadening our international reach and learning as much as we can about the business protocol and buying habits of potential customers from around the globe! We recently were recognized as being #74 in the world, honoring teams in the Coldwell Banker family for the third quarter of 2010. Also, I decided to join the Naples Area Board of Realtors Global Business Committee. The mission statement of this committee reads in part, "working with the National Association of REALTORS and the Florida Association of REALTORS to provide Naples members with global opportunities, including events and education programs..." This committee membership will enable me to work hand in hand with both local and international real estate agents, as well as Naples non-real estate entities in the area to provide opportunities to our international visitors.

If you are planning a trip to Southwest Florida, please call us to schedule an appointment. It would be our pleasure to talk to you about the home buying process. 239.370.0574

Thank you,

The Naples Real Estate Blogger

Global Connections

Coldwell Banker and The Harris-Peppe Team opens homes to the world in 46 countries, on 6 continents...and our network keeps growing & growing. The Coldwell Banker brand name is known worldwide. Because of correcting real estate prices, historically low interest rates and the value of the Euro, the Canadian dollar and other foreign currencies, Florida real estate is "on sale" like never before! With favorable exchange rates and our global network of 120,000 sales associates in more than 3,800 offices in 46 countries, we are uniquely positioned as one of very few international real estate brands. Savvy international buyers recognize that NOW is the perfect time to buy their Florida Dream Home. On a recent online survey, Coldwell Banker in Florida determined that 47% of the agents that responded reported working with international buyers from 90 countries in the last 6 months. This is significantly higher than the national average of 33% in 2007. Whether you are a buyer or a seller, working with a team and a company that offers this global reach is of utmost importance. We know that many of our international home buyers are going to the Internet first to find their Florida home. Florida accounted for 26% of the all international home purchases in 2007...many of whom have discovered the beauty and value of Naples! At Coldwell Banker and The Harris-Peppe Team we are committed to broadening our international reach. We are committed to educating ourselves on the business protocol and buying habits of potential customers from around the globe. I'm sure you've heard the expression that "real estate is local", however, real estate has gone global and we pride ourselves in our Global Connections.