30% INCREASE. Mortgage rates have skyrocketed ( see below ) . While the rates are still historically low, the upward movement was thought to take a nick out of the housing market, especially the lower end. Some are walking a thin line on affordability. Some home shoppers may now need to lower their expectations and settle for a smaller entry to their dream of home ownership. MORTGAGE RATES ( approx. national average ) : 30 yr – $4.375%; 15 yr.- 3.41%; 5 yr. adj.2.87%.
STATE of FLORIDA. Florida ‘ s population will soon replace the state of New York as the third most populous state in the union. The combination of people leaving New York and people moving to Florida ( from many areas ) has resulted in moving Florida up the population ladder. The trend is not only from people retiring to Florida, but job opportunities. Retirees are making the move south. While some are boosting our population, other southern states are also benefiting by the southern migration. Healthcare is a booming business in Florida and with it comes peripheral job opportunities. Also, many corporations are making a move to the Florida lifestyle. Recently, Hertz, the car rental firm, announced a move to Florida ( more below ) and others are following in various Florida markets.
Tourism has seen a jump this year, but while tourism is the number two driver ( real estate is #1 ) of Florida’ s economy there are many other venues that put Florida on top of the ” place to live” list. Just consider this: how many other states have 3 pro football teams, 2 pro baseball teams, 2 pro basketball teams, not only a “southern state” pro hockey team, but 2 of them? Florida has a lifestyle unlike any other.
SOUTHWEST FLORIDA. While Marco Island and Naples are considered one market, nationally, they are part of the bigger entity, Southwest Florida (Collier, Lee and Charlotte counties.) What happens in Lee County affects Collier County and the reverse is true. Recently Hertz Global announced that it was moving it ‘ s world headquarters to Estero in Lee County. The results will generate hundreds of local jobs and move hundreds of Hertz employees to the area. While Hertz needs to get Lee County zoning approval for the site to increase the zoning from 315,000 sq. ft. to over 650,000 sq. ft. the process is expected to be a “no brainer.” The only concern is that the new building will increase the traffic in the area surrounding the site. This site is part of the massive Coconut Point Mall complex. The results will not only add jobs for the construction of the $50.5 million headquarters, it will add jobs for the housing needed to accommodate the influx of new residents. Then there is the filter down effect the increase in personal income that ‘ s created. What about Naples? It appears that some of the early transfer of employees have decided that Naples will be their new home. What a let-down; they have to leave New Jersey life and relocate, and get accustom to, the Naples / Ft. Myers lifestyle.
EDITORIAL by Marv Needles, Broker/Owner of ERA Flagship Real Estate . Is the overall inventory of housing considerably lower? The answer: Yes and No. In some areas, inventory has diminished, but not significantly. However, depending on the price point or location, inventory is non-existent. If investing in Southwest Florida, waiting will cost a lot more considering increased values and the anticipated increase in interest rates. The time has come for some sellers to rejoice.
Excerpt from the NAPLES DAILY NEWS AUGUST 5, 2013 by June Fletcher
“According statistics from the Naples Area Board of Realtors, in June, the median home price was 23.2 percent higher and the supply of homes was 23.1 percent lower than it was just six month ago. “Before people were looking,’ said Naples real estate agent Dave Tate. ‘Now they are buying.’ …Buyers are being joined by investors, employees being relocated by Hertz and other companies, and seasonal residents. One owner had her beach front property on Marco Island on the market, holding firm to her $345,000 price took her unit off the market in February when no acceptable offers came in When she put it back on the market in July, she near instantly had three acceptable offers to choose from. … Summer buyers are in a fix. Sellers no longer need to do major improvements to entice a buyer. They must now choose from a resale property that may need some improvements or a new sale at much higher prices.
My Two Cents Worth: The tide has turned. If you are a seller, now it your time to get your home on the market. For buyers, waiting is only going to cost you more money in the long run. Rising prices ad rising interest rates are changing the landscape of real estate in southwest Florida. Call me today. 239-784-2637 www.JoanneSellsMarco.com
Marco Realtor News 