Naples Florida Real Estate Overview
The Naples Florida Real Estate Market is very unique. One of the first things a potential buyer must understand is the vastness of of the Naples Florida housing territory. There are areas within this territory that have zero similarities to one another and ones that a second home buyer would have no interest in. Read More.
During the housing bubble of 2003 to 2006, Naples home values. Much of this was driven by investors borrowing during a time of easy credit and no doc loans (loans issued solely based on credit scores). When the shell game collapsed, Naples housing was hit hard and values rolled back to 1999 prices in some cases. It was if a pendulum swung to far to the right, and then over corrected and swung to far to the left. More of this is discussed in the Naples Real Estate Market Report.
Naples a Second Home Community
The Naples real estate market has different dynamics than most other real estate markets. Naples is a second home community for winter residents. As such it has a higher percent of condo housing than the rest of the country - 67% vs. 26%.
The second home buyer drives the real estate market, not the local workforce. These buyer come from across the United States, Canada and many other foreign countries.
The wide housing diversity in the Naples real estate market appeals to a broad base of second home buyers. Some neighborhoods are mostly local workforce residents, such as Golden Gate Estates, while many others are mainly second home owners / seasonal occupants.
The real estate market in Naples also provide buyers with a wide range in pricing and different community types. From multi-million dollar beach homes and high-rises, to golf, to boating and to very affordable communities.
Here is a short video showing Naples diverse housing options.
Outlook for the Naples Real Estate Market
The Naples real estate market is mostly built-out. For decades, the number of new home sales exceeded the sales of existing homes, as expansion sites were plentiful. That will never be the case again. The main Naples area only has a few undeveloped tracks of land remaining. And the type of housing going on these tracks are more expensive single family homes.
Most of the new construction available and under development are in Naples outlying areas.
The demand for Naples real estate began increasing, while most the US was still stuck in the housing slump. Naples most recent level of home sales exceeds those of the housing bubble years. This is of course due from the combination of attractive values, and Naples strong appeal to second home buyers.
What can be expected going forward?
- The appeal in Naples real estate has remained resilient.
- 250,000 baby-boomers are reaching age 65 each month through 2030.
- The Naples FL inner areas are mostly built-out, leaving new development in the out areas.
- More businesses and services will appear in the out areas..
- In the not to distant future, only the existing housing supply will be available to meet demand.