The Real Estate Industry is Pro-Consumer

As a follow-up to my most recent post about how the real estate industry is so "pro-consumer", I'd like to share some ideas about the other occupations directly effected by a home sale from start to finish. I have thought about this a lot since Ron Phipp's talk here in Naples last week, and the idea that an average of 147 entities are involved in each and every real estate transaction is a pretty amazing fact! I started to piece together the timeline from the point of taking a listing through to closing...Here are a few of the people and businesses that benefit from this economically:

In addition to the support staff on my team, and at my office...I then make keys, call the sign company, photographer, virtual tour company--sometimes a carpet cleaner is called in, a house cleaner, a painter, a landscaper, a stager...the person who draws the floorplan, the printer, the advertising outlets and all their staff members...Contracts are accepted then the file gets turned over to inspection companies: pest inspection, mold inspection, radon, structural inspector and his or her assistants, airconditioner, roofer, pool inspector, seawall & dock contractor...a mortgage rep, a title company or attorney and their support staff and underwriters...wind mitigator, insurance agents and their staff, home watch services, furniture stores, movers...not to mention the closing gifts and the shops where they are purchased and their staff, the client appreciation dinners and those that cater and serve...the gift certificates and thank you notes...Is it any wonder at all that REAL ESTATE and housing is indeed the driving force behind a successful and flourishing economy?

I would love to hear from you if you are an individual whose job benefits from the real estate industry. Please comment on this blog post, or email me directly at michele@naplesrealestate.com. Your input is very important to me, especially if you live in Southwest Florida and think that The Harris Peppe Team should consider your services to assist our customers. Currently we have a 'Select Vendor' list featured on the menu bar on the home page of our website at www.NaplesRealEstate.com as well as a concierge list on our Naples Previews Luxury Website.

Thank you, and make it a great day!

The Naples Real Estate Blogger

"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

October Stats

Season is here! There is no denying it. The "out of state plates" are cruising along the Naples streets...in addition to more street traffic, our Internet traffic is up substantially...Rental inquiries: UP! ...Buyer inquires: UP!...Showings on listings: UP!...Offers on listings: UP!...Pending sales: UP! (click on chart below to enlarge which tracks pendings for the past 4 years). PENDINGS are always the best barometer for determining the current real estate climate. It signifies what is actually happening NOW. Here are a few other statistics from October that I think you will find interesting:

• Presently there are 7,773 active residential listings in *Naples...remembering just a few short years ago when this peaked at over 15,000!
• Of those, 3,354 are single family homes and 4,419 are condos.
• There are 791 active single family listings priced at or above $ 1 million dollars (Previews Properties)
• Only 46 total $1 million+ single family homes are currently pending.
• There are 519 active condos priced at or above $1 million (Previews Properties)
• Only 20 total $ 1 million+ condos currently pending.
• Closed sale YTD of all [SFHs and Condos] Previews Properties: 532, which calculates to an estimated 2 year absorption rate in the $ 1 million+ price points.
• October saw 1,481 total listings pending, up approximately 13% over the previous month.
• 1 in 5 active listings had a priced reduction in the month of October.
• The average rate on a 30-year fixed rate mortgage fell to 4.25%, matching the second lowest on records from 4.34 average percent last month. That equates to a monthly payment of $492 for every $100,000 financed. That is a decrease of 9.12% in the monthly payment of a year ago when the average rate were 5.04%.

Lower inventories, low rates, pent up demand, the election behind us, inquiries up, consumers beginning to believe that prices are leveling off...all positive indicators that Naples is in for a good selling season ahead!

Please let us know if there are any specific statistics that you would like us to include in our monthly report. The Harris-Peppe Team always welcomes your comments, and we look forward to earning your business.

Have a great day,

The Naples Real Estate Blogger

*All data derived from SunshineMLS and includes Naples residential statistics only.

New Listing

The Old World Charm of Calabria has come to Naples Florida!

There's a beautiful new listing in Naples Florida that we are so excited to tell you about! Over 5,000 square feet makes this Mediterranean masterpiece one of the best values for its size, age and location in the always popular downtown Naples locale. Three spacious bedrooms, each with its own balcony, plus a den, 5 full baths, a private 2-car garage and private elevator all create a very livable, maintenance free home in the heart of Naples. Nothing has been overlooked...the architectural details are magnificent and are enhanced by the lush landscaping, charming courtyards with trellis and fountain and colorful gardens, all of which surround the pool, spa and water feature. You will feel like you are in another world in this romantic setting, yet you are only one block away from the fabulous shoppes and restaurants of Fifth Avenue South, and a short stroll to the pristine white sand beaches of Olde Naples. This perfect Naples lifestyle is waiting for you to call it home. Call today to preview, and you will see why we think Villas Calabria is such a wonderful opportunity! 239.370.0574 For a unique perspective of this wonderful residence please click here: VIRTUAL TOUR Thank you, and make it a great day, The Naples Real Estate Blogger

Plan Ahead!

It may only be August, but now is the best time to plan ahead for your winter vacation in SW Florida! Our Naples Rental Department is already heating up with a lot more inquiries than last year at this time...Reservations are being made now for the "2011 Season". Plan early to get the best selections!

We've got a great team of leasing agents at The Coldwell Banker downtown location. Just give us a call and we will set you up with the right professional to handle your rental needs. Whether you are looking for a one week get-away near the beach, or a seasonal rental to keep you out of the cold and snow all winter long, our staff has a great variety of homes and condos to reserve for you now! Golf to gulf, all price ranges...I know we can find you just the right home away from home in paradise!

Here is an example of a wonderful waterfront single family home, located about a half-hour drive to beautiful downtown Naples. It boasts direct gulf access, with a pretty view of Goodland Bay. Two bedrooms plus a den; this home will comfortably sleep 5-6 people. Two full baths, laundry facility, private pool, and a dock for boating & fishing--Intensely equipped to make your vacation fun and convenient! Click HERE for photos and a virtual tour! This lovely Key West-style cottage is also for sale with an asking price of $400,000.

We look forward to hearing from you soon! 239.370.0574