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!

The Housing Crisis IS Over!

I know we’ve all heard that the housing crisis was over before but the jitters in the credit markets was an unexpected event that exacerbated the over supply in the year following the housing slump. Southwest Florida began to soften in 2004 following the active hurricane season and the housing market peaked nationwide in July 2005. The effects of almost 4 years of declining home starts, the run up in prices that led to the affordability crisis and the credit crisis, have all helped to bring down the costs of real estate substantially! Naples, Bonita Springs, Estero & Fort Myers has many great bargains that in many cases are even below the construction cost.

So, why is the true bottom here and now an opportune time to purchase real estate?
See the article on the market indicators at http://online.wsj.com/article/SB121003604494869449.html?mod=WSJBlog

Monday, May 12, 2008

5 New Rules for Home Buyers

By Amanda Gengler, Money Magazine
Last Updated: May 12, 2008: 12:39 PM EDT

(Money Magazine) -- There's no telling how long the housing crisis will drag on. Here's what you need to know before you start shopping in a rocky market.

Rule 1: You can't time the bottom
Rule 2: One reason to buy now - mortgage rates
Rule 3: Another reason to buy - rates on big mortgages
Rule 4: Don't buy cheap; buy good schools
Rule 5: Make sure your agent has your interest at heart


See the complete article here at CNNMoney.com

5 New Rules for Home Sellers

Whether you're buying or selling, the real estate game has changed. To win, you've got to learn a new playbook.

By Amanda Gengler, Money Magazine
Last Updated: May 12, 2008: 12:39 PM EDT

(Money Magazine) -- Selling a home is a lot trickier than it used to be - here's how to be smart about pricing, presentation and incentives.

Rule 1: Get real about price
Rule 2: Vet your agent - especially if it's you
Rule 3: Pimp your house - hire a home stager
Rule 4: Cash will make your home look even better
Rule 5: Underwater? Learn to swim


See the complete article here at CNNMoney.com