DECEMBER 2008 Newsletter
Welcome to the “softer side” of the real estate cycle. That period from Thanksgiving till the first or second week of January, which is historically very slow due to people concentrating on the holidays, kid’s school, vacations, etc. Shopping for a new, or second home, is way down the priority list at this time of year. Even the investors are sitting back to enjoy the season. However, with prices at their lowest levels, interest rates still falling and the continued volatility of the stock market, the coming months should see a very active real estate market.
Chairman Bernache of the Federal Reserve has suggested a number of options to ease the housing market slide and Governor Crist of Florida has requested banks and lenders to halt the foreclosure process for the next 45 days. Mortgage rates fell below 6% and are heading to even lower rates due to the governments massive effort to aid the U. S. housing market. Federal regulators are looking to rates well below 4% in the near future.
“Despite the turmoil in the economy, the overall level of pending home sales has been remarkably stable over the last year”, says Chief Economist Lawrence Yun. Naples pending sales for homes and condos are slightly less than a year ago for only the second time this year while Marco Island continued to be better than last year. Records show that because of the low rates and prices, first time home buyers are taking advantage of programs designed for them, retirees are using the money from the stock market to pay cash and investors are not flipping for profit but buying to occupy. It appears, based on events of this year, that there is a pent –up demand and access to safe, affordable mortgages will bring buyers back to the market. In addition, The National Association of Realtors is lobbying in Washington for a $50 billion government aid package, including a $7,500 tax credit for all homebuyers. According to news reports, builders want an aid package of at least $100 billion, with tax credits up to $22,000, plus subsidies that would bring mortgage rates to 3% for early 2009.
Although Florida was hit by only one hurricane this year (Fay), and the other 15 storms spared us, 2008 was the fourth most costly season with $21 billion in damages. Do not look for lower insurance rates, as rates may edge higher due to back-up insurance costs. This coupled with decreasing housing costs, have homeowners requesting recalculation of replacement value, which will lower the premium.
Check out our website (www.naplesgolf-marcobeach.com) to view some great properties of interest. We currently have an estate home in NLCC at $799,900 turnkey furnished with 3/3/den, 2-car garage, pool and spa with an eastern view across the water and golf course. We also have two single family villas that are turnkey furnished at $619,000 and $594,900 and condos ranging from 1,394 sf to 1,778 sf ($265,000 to $399,000)– all with great views. Coach homes (2/2/den, 2030 sf) are available in the low $400’s and carriage homes with 1,672-1,908 sf are priced in the low to mid $300’s. We also have direct and indirect residential building lots on Marco Island starting at $495.000, and a single-family home in Madison Park – turnkey furnished at $525,000. So check them out. New listings are coming up in January. And if you, or someone you know is interested in rentals, give us a call.
REMEMBER… if you need assistance or have questions about your investment in Paradise or any other property in the area, please give us a call at 239-793-6493. We will be happy to provide any information you may need when making a Real Estate decision. And don’t forget to visit – and make part of your favorites – our website at www.naplesgolf-marcobeach.com where you can find all
types of information including a nationwide MLS plus Naples Lakes active listings updated weekly.
Above all, let us not forget the true meaning of the holiday season and even with all the turmoil and bad news we still have much to be thankful for. May you have a most memorable CHRISTmas and successful New Year.
From your Naples Lakes Realtors,
Ted and Anne Henning |
