Boom, Bust…Boom?
Jul 8th, 2009 by Rick Parlante
How inefficiency and the cyclical nature of real estate can only ensure one thing: Never a dull moment
Real Estate is one of the most inefficient businesses around. The whole premise of the business is based on trends and emotions. Trends tend to have a low predictability factor, more so now than ever before. Emotions are never really a good thing when you’re spending a large amount of money, such as when buying a house.
Trends and emotions make the real estate market a living, breathing beast. It tends to be half egotistical and half hypochondriac. When the market is feeling good, it thumbs its nose at everyone. When it is feeling bad, it whines until you just want to shoot it and end its misery. Ups and downs are over-hyped equally. The bottom line is this: Which hype are you going to believe?
Don’t get me wrong, this is much more than a “think happy and you’ll be happy” situation. There are some concrete factors that drove the Naples real estate market down, including the sub-prime mortgage fiasco and the “buy to flip” phenomenon. And plain and simple negative hype when things started to go bad was the final straw.
The one prediction that we can count on: What goes up…must (and will) come down. And then it will go up again (and come down again)
Two and three years ago for every two dollars you spent buying real estate in Naples you got one dollar of worth. Now you can buy that same dollar of worth for about forty cents. If you’re a buyer, you’ve got to like that kind of trend. If you’re a seller - maybe not so much. But the take away is that the market, like most things in life, is cyclical. The market peaked, slid down the back side, and is now heading straight toward recovery.
The latest market reports for Collier and Lee Counties show a rise in sales and a depletion of inventory - this is a sure sign that things are turning around. We’re also seeing many investors returning to the area and buying up foreclosures and short sales. These “buy and hold” investors are helping the market recover and the new trend is away from “flipping” homes.
Investors coming in for the longer haul, see and understand the advantage Naples has over other markets
Perhaps the best news to come out of the current real estate cycle is that Naples is affordable again. Other markets have experienced the same down side, but aren’t recovering as quickly because they can’t brag about the upside like Naples can. Smart investors see the fantastic potential of Naples - not only as a vacation destination but as a place where families of almost all income brackets can once again put down roots.
Naples is ranked as one of the most popular places to live in the world. Its lifestyle rivals that of Europe’s Mediterranean coast. Among its world class amenities are miles of pristine, sugar-sand beaches lining crystal clear blue water; river, bay and deep-sea fishing and boating; luxury and everyday retail; fine and casual dining; arts and culture venues; and professional sports teams.
Naples is the ideal place for families with high-ranked public schools and a variety of private institutions, plus several universities and colleges. Most Naples neighborhoods are master planned communities that offer safe streets, clubhouses, pools, parks, lakes and other recreational opportunities within walking distance from home.
For golfers, Naples is nothing short of paradise. The Southwest Florida region is home to more golf courses per square mile than any other location in the country. And these are fantastic, pro-designed courses that offer a variety of layouts and challenging play for all skill levels set against gorgeous natural backdrops of trees, rolling hills and lakes.
Naples is perfectly positioned to make the real estate comeback
of the century
The smartest among us will invest in this up and coming market now and ride the wave. While we may never see the highs of a few years ago, we certainly can believe that the worst is behind us.
We should celebrate the fact that the market has normalized and once again, the American Dream of homeownership is alive and well in Naples, Florida!
Bottom Line: Naples real estate is still the smartest
investment you can make
If you are tired of watching your savings stagnate and your stock market investments nosedive, Naples real estate is the way to go. Our professional real estate team has over twenty years of experience helping people just like you make intelligent investments in their financial futures.
Our inventory includes waterfront, golf course and country club homes, condos and acreage in Naples and the surrounding area. We’ll help you reach your real estate investment goals by identifying the right property at the right price.
Call us today toll free at 800-562-0233 or locally at 239-261-9050. Visit us online at www.NoSnowNaples.com or email us at info@nosnownaples.com.
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