Welcome to the Naples Meridian archive
Here you will find a curated collection of insights, inspirations, and expertise tailored for Naples, Florida. From luxury real estate and interior design to local art, culture, and architectural trends, we share what makes this community unique. Explore with us as we highlight the best of Naples living.
“Recovery to Normalcy” NAR Chief Economist view on Housing and Economy in 2011
February 25, 2011. Earlier this week in Naples, Chief Economist for The National Association of Realtors, Dr. Lawence Yun presented his housing and economic outlook for 2011. Naples Meridian commentary regarding the recent political unrest in the Middle East and its economic effects follows the highlights.
A REAL RE-BOUND for Existing and New Home Sales in Naples, FL and Beyond
The State of Florida made significant gains to round out 2010. Existing home sales rose 5 percent for the year; totaling 170,848 sales compared to 162,873 total sales in 2009. Healthy predictions continue as the National Association of Realtors (NAR) anticipates the sale of existing homes to rise 7.9 percent to 5.3 million in 2011.We enter the busiest time of the year on an upswing. Naples is a beehive of activity, especially as the remainder of the country continues to endure freezing temperatures and snowstorms.According to the Naples Board of Realtors (NABOR) overall closed sales increased by 10 percent from 7,126 sales in 2009 to 7,840 sales in 2010. While the under $300,000 price point has dominated our market for the past three quarters, a significant increase has been detected in the $1 million and above price category.Jobless figures will begin to dwindle as consumers embrace new spending patterns and corporations and investors fuel new ventures.For those of us fortunate to have the ability to purchase luxury goods and real estate, the attraction can be categorized as altruistic. Options for acquiring sound investments abound, and such acquisitions will directly influence the economic climate of the local area. Is there really a better incentive to open up those checkbooks?
Fighting Foreclosures in Florida
Florida is one of 23 states where foreclosures must first be approved by a court. Recent reports declare that those rules have been breached by banks and affiliates. A vast number of homeowners have been caught in the middle as banks have admitted to regularly foreclosing on homeowners who were in line for a mortgage modification.Lawmakers and judges have joined forces to speed along the foreclosure process, though their practices have come under scrutiny; the Florida Legislature provided a $9.6 million grant in 2010 and set a goal of reducing the backlog of foreclosures by 62 percent within a year. Some believe that this “incentive” has shifted the focus and favors lenders while neglecting homeowners’ rights.A pivotal court ruling on January 7, 2011 in Massachusetts may set the precedence for dealing with foreclosures. The Massachusetts Supreme Court ruled that two foreclosures were invalid because the bank did not follow proper steps to show the authority to foreclose on a home. This court ruling may be particularly beneficial to homeowners who are presently in the midst of short sale negotiations, loan modifications and refinancing existing loans.Should you decide to purchase a foreclosure, make sure to consult with an attorney; the legal ramifications of purchasing a foreclosure should be discussed before putting in an offer. attorney will ensure that property and title rights are obtained without the possibility of future recourse action by the bank. Your realtor will represent your interest in the transaction, while your attorney will represent your rights to the property.
Naples Buyers Take Note, Sales of Condos and Single Family Homes Rose in Q1 2010
Florida Realtors has reported the sale of existing single family homes throughout Florida rose 24 percent in the first quarter of 2010 as compared to the same time period in 2009.
National and Local Housing News Update
National Association of Realtors chief economist, Lawrence Yun commented that relatively flat home prices have been the hallmark of the 2010 housing market.Construction of new homes and apartments declined in October and a recent report suggests that housing production in 2008 and 2009 fell one million units short of required figures needed in a normal functioning economy.National Association of Homebuilders Chairman Bob Jones commented, “pent-up demand for housing will at some point need to be worked off, pushing single-family production in a positive direction. In the meantime, the deficit continues to grow as builders remain cut off from the credit they need to begin developing and building new housing.”While the busiest months in Naples are typically January to March, the influx of visitors to the area ahead of schedule has been noted. Figures through October 2010 indicate a total of 9,044 available homes in the Naples area. Median prices have held at $180,000, yet for properties priced above $ 300,000 the median price has climbed from $525,000 in October 2009 to $541,000 in October 2010. A total of 492 residences have been sold thus far in the month of November with over 900 pending sales contracts. Pending sales provide an accurate gauge as to the direction of the market, given that contracts in this category are expected to close within thirty to sixty days given the current climate.
Thanksgiving for Foodies..a complete guide to best options around town
For some of us there’s nothing more thrilling than the aroma of roasting turkey and warm pumpkin...
No Mumbo Jumbo, Big Ticket Loans Are Back
The credit crisis annihilated the jumbo loan market. Banks simply stopped making loans available for “expensive” homes”. According to Inside Mortgage Finance Publications Inc, jumbo mortgage lending increased by 20% in the 2nd quarter of 2010 as compared to first quarter figures. Originating $18 billion in jumbo loans for the quarter is a healthy start though there is still room for improvement. Buyers seeking to purchase a vacation home or condo may find qualifying for a jumbo loan via a large bank to be difficult. Processing delays, rigid requirements and bureaucratic red tape is pushing borrowers to seek alternative resources. A mortgage specialist or local lender may be able to structure the loan in an efficient and timely manner. Regardless of the mortgage source, underwriting continues to be strict. Borrowers need to exhibit stellar credit profiles, provide detailed income and personal documentation, and must contribute at least 20% of their own funds toward the purchase of the property.The resurgence of jumbo loans is a step in the right direction.Borrowers that have been sitting on the sidelines, due in part to the lack of financing options, should view the revival of jumbo loans in combination with low interest rates as motivating factors.No one knows exactly when the scales will tip in favor of sellers over borrowers. Yet when purchasing power becomes fluid in all price brackets there is a tendency for the tide to change on the proverbial dime.
A Condo in Florida… A Dirty Proposition or A Good Investment?
Will we ever get tired of hearing that real estate prices are falling? Not really, especially if you are looking to take your cash and jump into the landlord game. Investors look to maximize the return on their investment, from the onset. Regardless of the length of time that an asset (like real estate) is held, investors need their investment to “yield” (commonly known as a capitalization rate: net operating income /sales price) of at least 5-6% annually. In Naples, where demand for condos is split between seasonal and annual renters, finding a true investment opportunity can be tricky, but not impossible. As of November 1, 2010 there were 434 condos and villas in Naples available for sale under $100,000. Select a property based on the rental opportunities that currently exists. Purchase a property only when the cash flow meets your investment return requirements. Don’t buy on what may happen, but instead of what is actually occurring today!
For a detailed consultation on identifying lucrative residential investment opportunities in today’s market in Naples, Florida contact Fatima@NaplesMeridian.com
Foreclosure Frenzy : A Recap of the Issues & its Impact
Recent revelations about mortgage lenders filing possibly faulty court papers to foreclose on homes has sparked a public outcry and called into question tens of thousands of foreclosures
Low Appraisals a Thorn in our Side? Not Necessarily if we Engage the Locals..
Since the housing bubble burst, appraisers have come under intense pressure for failing to account for actual market conditions. Though it is not all doom and gloom as national news is not always in line with the local perspective. What better way to safeguard your future investment than by selecting to work with local industry professionals who not only understand the local market but are privy to the nuances and trends within the markets. Local appraisal companies want to engage sellers at an early point in the process to provide an actual snapshot of market value based on true comparables in their neighborhoods. Should the presence of short sales or foreclosed properties threaten to sabotage the sale or purchase, individuals can at least count on having a robust conversation with the lender or appraiser. Local lenders and appraisers are focused on client’s best interest and are dedicated to keep the community moving forward in these uncertain times. Buying locally is all the rage for a sustainable environment. Applying that same practice to our home buying/selling practices may just save us all some heart ache, and be the key to working intelligently within the ever-changing system.
Slamming the Door on Cowboy Contractors
Whether you’ve chosen to remodel based on your favorite HGTV show or to increase the potential sales price of your abode, there are a few crucial points to keep in mind before hammers get swung
Existing Home Sales Decline But the Sun is Shining on Naples, Florida.
The National Association of Realtors (NAR) revealed that sales of existing homes for the nation...