EXPERTS SAY NO, FOR MANY REASONS
Naples inventory has been dropping since 2018 from highs of 7,000 to all time lows hovering around 1,000 since February of 2021. New construction inventory is also low, as supplies are scarce and builders struggle to catch up to demand. Today there are only 175 new construction MLS listings in all of Naples, with prices ranging from $219,900 to $27,000,000 compared to the over building prior to 2009.
The biggest contributor to the 2009 crash can be attributed to easy lending standards, today extremely strict lending standards are in place, and have been since government regulations to prevent another crash were implemented shortly after 2009. Foreclosures are almost nonexistent, there is only 1 foreclosure in all of Naples today, and it is priced at or above market value. Even better, low mortgage rates continue, giving buyers more buying power and motivation to purchase now.
End users make up most of the real estate sales in Naples, compared to the buyers and flippers with little or no down payment and adjustable-rate mortgages preceding 2009. According to Statista, Homeowner equity as a percentage of household real estate in the United States amounted to 66% percent in 2020, compared to 37% in 2009.
People are asking when prices will go down again, but in reality, compared to other luxury markets around the country, Naples has been undervalued far too long. We are finally catching up to where our prices should be as a premier luxury home destination.
Most importantly, the Naples economy is stronger than ever, attracting buyers fleeing poor economies elsewhere. People simply want to relocate to a sunny safe area with tax advantages, outdoor activities, A rated schools and big city amenities in a small friendly city.