Naples, Florida residents have been enjoying several years of appreciating values and low inventories. While markets have remained strong, I am starting to see a few signs the market may be making some changes which I will continue to explain in my Naples real estate blog
going forward. Here's a snapshot of what I see so far for the upcoming Naples, Florida real estate season 2014-2015.
During the 2013/2014 season, acceptance of Naples, Florida real estate values was evident among the majority of the buyer prospect base I encountered. Most buyers by that point were making fairly quick decisions on moving forward with Naples, Florida real estate purchases with slight resistance to pricing. Some buyers at this point were preparing to wait years until the Naples, Florida real estate market levels out. In some locations, Naples Florida real estate sales hit a several year high if not broke all time high sales records.
While I expect some values to continue to rise and record breaking activity to continue, I am starting to see buyer push back on prices. I'm hearing this from colleagues working with various companies around town and seeing it through my own activity. Examples include:
- Buyers choosing not to make an attempt at purchasing something they identified that they liked.
- Failed contract negotiations.
- Contract back outs are more prevalent.
I predicted we would lose roughly 20-25% of our buyer prospect base last year due to the tightening of our market and/or the increase in value yet sales in the luxury real estate market are still on the rise. Most recently I'm seeing some investor driven traffic and noticing several buyers are making alternative purchases for neighborhoods off the beaten path instead of purchasing in "tried and true" neighborhoods for "perceived value" or because they are more budget conscious. This is not necessarily a wise option. There is no better time than the present to work with an experienced agent who can educate you on what happens to this real estate market at the peak and likewise, the bottom. This is vital if you want to make the smartest purchasing decision possible.
Cash is still king and even more so this year than last. Several lending requirements and regulation just went into place in October making purchasing with a loan even more of a fiasco. Seller's will value cash more so this year than in years past and many of our clients are preparing to purchase with cash anyway. If at all possible, I would encourage you to do the same because chances are you will still be competing with other who will be.
Some inventories on the rise! While inventories have been a colossal problem during the last couple of years, some markets are starting to show stability here and in a fraction of the markets, we're even beginning to see a slight oversupply. This is great news for buyers. Areas where you may have more negotiating power might be Port Royal, Aqualane Shores and new construction in locations like Park Shore, Moorings, Coquina Sands, and Olde Naples. Not all new construction offers the same quality and can be readily identified by a trained eye but location and price should not be the only factors you consider to equate quality.
Private placement listings (properties that are available but not listed on MLS) are a trend as well. Seller's beware, this is not the most advantageous way to sell your home 99% of the time. If you encounter an agent who touts the benefits of private placement, please contact me to weigh all your options.
Ridiculous pricing in some locations. These are properties that are so embarrassingly overripe, they will never sell. It is typical for some sellers to fully believe they will get this type of value for their property because others have sold at undocumented prices so they think now is the time to choose any number. This is where some uneducated agents get their uneducated buyers in huge trouble. I work from a philosophy where I will tell you exactly what you are buying and give you the true real value of the property. Some buyers are completely ok with paying more because they either really want the property or money is no object. Purchasing will take place like that this year as well. When you work with me, you will at least know what you're buying (or walking away from) regardless.
I am seeing lots of new agents entering the market who are not properly prepared to orchestrate a transaction successfully and are not pricing properties as well as they should be. Those mistakes are costing sellers thousands of dollars and market time. I'm also seeing several new agents showing property. Not all of them know the neighborhood or understand negotiating procedures. This costs buyers an enormous amount of time and money. It could actually prevent them from being able to make a property purchase because they did not use their time wisely during the time they were in town. I have had several calls during the past 6 months from buyers who were back in their hometowns who had recently been down to purchase but didn't because they did not see what they wanted to see or their negotiations went south. These calls are for the sole purpose of connecting with an agent who can help them meet their objective and many have moved forward on purchasing because they got the expertise they needed to get their objective accomplished.
If you're thinking about selling, I know the market, the people who sell it and buyers who are attracted to properties like yours. Contact me direct and let's get started today!
If you're thinking about buying Florida real estate, contact me direct. I know the Naples, Florida luxury market, the people who sell it and the best way to help you acquire your objective.