Naples Real Estate Time To Buy?
The University of Florida Bergstro Center for Real Estate Studies, quarterly surveys leading experts in real estate investment and development to determine current trends in Florida real estate. The survey covers residential development, apartments, industrial, office and retail.
"If you’re thinking of buying a house, there’s probably not much to be gained by holding out at this point," said Dr. Wayne Archer, Director of UF’s Bergstrom Center for Real Estate Studies. "It doesn’t look like prices are going to fall anymore."
Dr. Archer’s statement addresses only the single family home market. However, the survey does suggest that the condominium segment is still lagging behind. As well as land for residential development.
Dr. Archer continues by saying "When prices maintain the same level as inflation, then we’re probably in some kind of equilibrium. It indicates the market is stabilizing."
One possible explanation for the housing market turning the corner is a restricted supply of land for residential development, Archer said. The shortage meant there was less overbuilding than there might otherwise have been, he said. Condos did not have this land restraint, which is one reason they are overbuilt, Archer said. At the same time, condos are prone to strong speculative swings because they are considered a relatively easy commodity to exchange; it’s not difficult to acquire them in multiple units or to buy contracts on them, he said. The stabilization of the single-family housing market came earlier than anticipated and is not expected to affect all parts of the state equally, Archer said. The quieter markets likely will take longer to rebound than those in Central and South Florida, where growth has been explosive.
Here are some key points from the survey:
- The rate of residential sales should stabilize for both single family and condominiums.
- Prices for residential properties are expected to lag behind inflation, with less price declines than previously anticipated.
- Weakest areas of residential real estate are in condominiums, condo conversions, and individual residential land lots.
Key issues that bear watching are:
Insurance
Lending
Sources of capital
Growth management
Land for development
Property taxes
Increased use of mixed developments
Oversupply of condominiums
Green Development (or Green Building)
Increases in foreclosures
Unavailability of affordable housing
Increased increase in some northern areas (Carolinas) due the uncertainties in Florida.
As a potential buyer or seller of real estate it is very important to look at results over time to better comprehend market trends and shifts. This is the exact reason why information in graphical format can assist you in determining when to make your purchase or sale.
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[...] Looking at the last several months the trend line would reflect an upward trend, which does support Dr. Archer’s comment that now is the time to buy a single family house in Florida. Bookmark [...]