In many articles and government reports, we read about how poor the real estate market is today. An important item to keep in mind – 1) the statistics are global in nature 2) not all real estate markets are equal, nor are neighborhoods or subdivisions within a market area. You may see this within your own town or city.
There are communities or subdivisions within the Naples, Bonita Springs and Estero areas, where you will not find an over-abundance of homes or condominiums on the market or the average days on market (ADOM) favorably compare to the area’s ADOM. These areas represent a good value today. Why? People like living or having a second home in the community and have no desire to sell, because of this. This preserves the value of the neighborhood, even during a down turn in the market.
We can look at Honda for a good example for preservation of resale value. Have you ever seen a rental car company that offers Honda models for rent? In all likelihood, you don’t. Honda does not flood the market with fleet sales, thereby reducing the available number of cars for resale.
Another thought worth reflecting on, but still thinking about statistics. There are areas that were "hot" during the past two years – but it do not have the test of time. The areas were "fads" – kind of like "pet rocks" from a number of years ago. Buying a property in one of these areas has always been an unwise decision.
One final point about real estate statistics is measuring the population growth or reduction. As an area population grows there is a demand for housing. Basic economics shows us that when there is demand the price usually will remain stable or increase.
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