John Tuccillo, chief economist of Florida Realtors, said rapidly disappearing inventory homes for sale in Southwest Florida, particularly at lower prices, is “forcing buyers to move quickly.” “With more people moving in, there’s more demand for services and products,” he said, adding this will dampen unemployment and boost job growth.
Mike Hughes, president of the Naples Area Board of Realtors, also doesn’t see the region’s price increases as prelude to a bubble. “When the market went down during the recession, the adjustment in price was very severe,” he said. “We’re coming back nicely.” Positive indicators - One is rising prices of new homes, which are pulling up prices of similarly sized resale ones. Another is equity-rich cash buyers from more expensive parts of the country, who can afford to bid up home prices. And thirdly, is buyers who are rushing to buy before interest rates rise, as many economists expect will happen by midsummer, he said. Buyers are taking action as they realize the market is still building momentum.