The Naples real estate market has started another boom. Smaller lots in Old Naples that sold a year ago for $600,000 are now going for $1 million. Premium bigger lots that were at $1.2 million last year are selling for over $2 million. Inventory of active single family homes has dropped from over 100 a year ago to under 60, and demand is increasing. Every agent in our office has a list of buyers wanting building lots at a good price. Many buyers are hesitant to jump in at these new price levels, but enough bolder buyers are pushing the market values steadily upward.
I like to tell my clients that the prime neighborhoods in the City of Naples are the tip of a big funnel that channels everyone from the Midwest to the East Coast down to Florida. This funnel narrows in on Naples and the many offerings from beachfront to golf course communities in all price categories. For buyers with discernment (usually aided by an experienced Realtor) and significant resources, the tip of the funnel steadily streams into in the neighborhoods of Old Naples, Aqualane Shores and Port Royal. Old Naples has traditionally been the last neighborhood to go down in value in a recession and the first to go up in a recovery. This latest turnaround has been no exception.
Jumping into home ownership in these neighborhoods in a booming market has always been a leap of faith. It is like a “buy in” in a high stakes game. If you want to get in, you have to ante up. The people who regret not entering these rising markets are legion, and the ones who make the leap are deservedly smug with satisfaction. I know everyone is always looking for a deal, but in a market like this, I tell my clients that “a deal is going to be anything you bought a year ago.”
So how do you decide if you should jump in now? A good Realtor friend told what he tells his clients in a booming market: “If you find a comparable property, BUY IT!” There is no better advice.
If you are looking for a property in Old Naples, let me help find you a deal. Just don’t plan on realizing how good a deal it is until next year.
Bill Van Arsdale