Two new reports by Florida TaxWatch and Florida Realtors show Collier County’s already accelerating economy continues to climb, leading the rest of the state with more jobs and a booming housing market. “We predict robust growth, particularly in Southwest Florida,” said Robert Weissert, the institute’s chief research officer, adding the region has bounced back from the recession and is “very friendly to business.” Citing research by IHS Global Insight, Florida TaxWatch predicted Naples-Marco Island would top the state’s growth rate at 4.7 percent in 2015. Meanwhile, a report by the trade group Florida Realtors showed that an interest for housing continues to push up single-family median prices for existing homes in November. Naples-Marco Island topped the state with a 16.6 percent increase. Throughout the state, fewer foreclosures, lower gas prices, continuing in-migration and strong job growth, particularly in construction, are behind the expected boom, the TaxWatch report said.
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.
For information on Naples real estate please contact Tamara Wright at [email protected] or 239.438.7898.