High-End Home Deals Dwindling
Throughout the past 18 months, we have seen a significant stabilization in the Southwest Florida real estate market, but the best signs are coming from luxury sales in the Naples area. The numbers tell the whole story.
In 2007, the Naples area overflowed with inventory. With more than 12,000 properties on the market and sales crawling at a snail’s pace, many people doubted whether the area would ever recover. Fast forward 5 years to today’s market. The current inventory number is about half of 2007’s number and sales have been very brisk. For the first time in a long time, we are able to say that the market has a very healthy level of inventory. Without knowing what the future will bring with elections & interest rates, my prediction is that this summer could certainly be the last chance for people to still get “great deals.”
This rings especially true in the luxury home market. May 2012 saw a 50% increase in sales of $2 million+ properties over May 2011. What makes this even more interesting is that the vast majority of buyers in our market place are paying cash. With interest rates still below 4%, you may be wondering about the logic behind these cash purchases. As you may be aware, Florida is one of the best states in the U.S. for asset protection. With our homestead laws, the super rich have yet another way to protect their fortunes by purchasing real property in Florida. Obviously, it does not hurt to have some of the best beaches in the country, no state income tax, & Florida sun during the winter. Together, this creates the perfect environment for wealth.
If high-end property is on your radar, you may want to get a move on it. With summer time just a few days away, the upcoming months will be some of the best opportunities to claim your share of luxury in Southwest Florida.