Naples Real Estate News 02/27/08

February 27, 2008 Posted in Real Estate News 

FORECLOSURES - The White House has pledged to veto a bill that it claims would slow a housing recovery. Among other proposals, the bill would change bankruptcy laws and empower judges to change borrowers’ mortgage terms; and it would provide $4 billion to buy and rehabilitate foreclosed homes.

HOME PRICES - The bad news: Home prices fell in fourth quarter 2007, according to Office of Federal Housing Enterprise Oversight (OFHEO), the government arm that tracks real estate prices.

The good news: Prices declined by only 0.3 percent compared to fourth quarter 2006, and 1.3 percent compared to third quarter 2007.

Looking at the local real estate market:
Naples prices decreased 1 percent compared to the fourth quarter 2006. Compared to the third quarter of 2007 the decrease was 0.6 percent.
Bonita Springs home prices rose 22.4 percent over the fourth quarter of 2006. The comparison between the third and fourth quarters of 2007 is an increase of 0.2 percent.
In Estero the median price paid in the fourth quarter of 2007 increased 2 percent over the same quarter in 2006. The median price increased 17 percent over the third quarter of 2007.

GLIMMER OF HOPE - Toll Brothers announced their financial results for the quarter end today.  In statements by Robert Toll, company founder and CEO - said he did see “a few glimmers of hope” in the Naples, Florida area and the suburban Washington DC markets."

"Fears of recession were helping to keeping buyers out of the market," Mr Toll added.

“We believe this drumbeat, coupled with concerns over mortgages, the direction of home prices, and foreclosures, has kept pent-up demand on the sidelines,” he said.

COMMERCIAL - While some Wall Street analysts predict that commercial real estate will follow in the footsteps of the subprime mortgage crisis, the outlook isn’t that bleak. Delinquency rates on commercial mortgages remain very low and the risks simply aren’t the same as with residential loans.

NEW HOME SALES - Sales of new homes fell in January for a third straight month, pushing activity down to the slowest pace in nearly 13 years. The median price dropped to $216,000, the lowest level in more than three years.

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