Tuesday, May 13, 2008

"Naples is Back!"

“Naples is Back!” … This was the declaration of Toll Brothers Home Builders CEO on Tuesday May 13th, 2008 http://www.cnbc.com/id/24600543

The whole segment is interesting but the interview with Robert Toll starts at 4 minutes and specific quote that Naples is Back starts just after 5:20

For months I’ve been having discussions about the incredible values in the Southwest Florida market that are in more cases than not below the cost of construction. The agents, lenders and other local real estate experts I’ve been talking to see the local market gradually getting better. The thing that seems to elude all of us is the number of people that are still holding out to try and time the market. You can no more time the real estate market than you can the stock market. One expert that I spoke with put it best when he said “are buyers waiting for higher prices or higher interest rate!” This rhetorical question best sums up the state of interest rates, the real estate market and the economy. With the Federal Reserve expected to pause in it’s cutting of the Federal funds rate and long term inflation that effects what interest rate you can obtain on a loan expected to continue rising as they have been since mid February there is truly nothing to wait for if you are in the market for a new home in Naples, Bonita Springs or Estero. At this point it is possible that prices could deteriorate a little more but if interest rates are on the rise at the same time any money you save will likely be futile and the best values may slowly be disappearing. National builders have began to raise prices over the last few weeks and one builder that was severely effected in the last year raised prices by 2% over the last several weeks. This was highlighted this week on Jim Cramer’s Mad Money on CNBC when he interviewed Toll Brothers CEO Robert Toll. Toll Brothers currently operates in 22 states and for Robert Toll to shatter hopes of a recovery for every city and state that they operate in and elevate Naples is a significant plug for the local market especially given that the Naples area is often lumped in with Miami(South Florida) which has been severely impacted by the dozens of high-rise properties that overbuilt that market.

If you’re in the market for a home, the next several months over the summer will be the best time to pick up one of those great values to take advantage of the low prices and historically low interest rates before they disappear!

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