Naples Bonita Springs Estero Florida

Reproduced with permission

Fla. in top five for home price appreciation

NEW YORK – May 10, 2012 – Tighter housing inventories are starting to lift home prices, says Anand Nallathambi, CoreLogic’s CEO.

CoreLogic’s latest home price index, which includes distressed sales, shows a slight month-over-month nationwide increase of 0.6 percent in home prices from February to March. But some markets are seeing much more of a price boost this spring, including Florida, which ranked No. 5 overall for home price increases.

“This spring, the housing market is responding to an improving balance between real estate supply and demand, which is causing stabilization in house prices,” says Mark Fleming, CoreLogic’s chief economist. “Although this has been the case in each of the last two years, the difference this year is that stabilization is occurring without the support of tax credits and in spite of a declining share of REO sales.”

States with highest appreciation

According to CoreLogic, the following states had the highest appreciation in March (this includes distressed sales):

• Wyoming: +5.9%
• West Virginia: +5.3%
• Arizona: +5.1%
• North Dakota: +4.7%
• Florida: +4.5%

States with biggest depreciation

Meanwhile, the states with the greatest depreciation, when also figuring in distressed sales, are:

• Delaware: -10.6%
• Illinois: -8.3%
• Alabama: -8%
• Georgia: -7.3%
• Nevada: -5.8%

Source: Melissa Dittmann Tracey, Realtor® Magazine Daily News

© 2012 Florida Realtors®

The following real estate transactions were published in the Naples Daily News yesterday, as it is every week, for the seven day period from March 26 through April 1, 2012. The data is taken directly from the public records.

Unlike the Collier County list previsouly posted, this only encompasses the souther portion of Lee County including the very south part of Fort Myers.

The following real estate transactions were published in the Naples Daily News today, as it is every week, for the seven day period from March 26 through April 1, 2012. The data is taken directly from the public records.

When I counted how many pages it covered (three and one-half) it seemed dramatic, but not unexpected. I wanted to find a way to convey that so, here's my attempt at it. The total number was not published but, for the same period a quick check of the multiple listing service shows 308 closed sale listings for Naples and Marco Island. The number is likely higher than that since there are transactions recorder in the public records that are not in the MLS.

Signs of a Recovery? Part 8 2012 Tourist Season

PART 7

During the first quarter of 2012 there was an 8 percent increase in the number of people visiting the area compared to the same period last year according to tourism officials. It's interesting that the increase in sales tax revenue for during the same period is, about, 8 percent (see previous posts.)

While this is all goods news, everyone is well aware that it's not yet at the peak levels attained during the mid-2000. I don't view that as begin negative at all. My take is that the last two seasons are posting measurable and significant increases and there is more room to grow. It will, however, take economic improvement nationwide to start approaching the peak numbers again.

Much more than one-half a million visitors came to Collier County in the first quarter of 2012.Those visitors spent more than one-half a million dollars, up 12.9 percent from last year. In Lee County the total number of new visitors in January and February (March numbers not available yet) went from 817,000 in 2011 to 816,000 in 2012. It's hardly a change worth noting, about one-tenth of 1 percent, and could change once March numbers are tallied. Lee County did see double-digit increases in tourism and bed tax revenues.

Naples Beach Hotel and Golf resort and Ridgway Bar & Grill and Bayside Seafood Grill all reported 2012 numbers much likes periods of 2007 to 2008. Said otherwise, very good improvement and room for more.

Marco Island Marriott Beach Resort had a great first quarter with more conventions booked in 2012 than the same period in 2011 which, again, were comparable to 2008 levels.

The owner of Everglades Wonder Gardens said "I feel like we're coming out of the valley, you have to go through valleys to get to the top of the mountains."

Signs of a Recovery? Part 7 Local Merchants

PART 6 | PART 8

The 2011 - 2012 winter tourist season and winter resident season saw an increase of 25 - 30 percent in the number of visitors. Our real estate office, and others, can attest to the increase in visitors with the large number of people scrambling at the last minute to secure a short term seasonal rental property. Some visitors never did find a property and contributed to the boost in hotel business. (Side note: If you have booked your 2012 - 2013 seasonal rental you will you should do that today!)

In addition to the increase in the number of people in the area is the fact that were spending money in local shops and more than in previous years, noted the president for the Naples Chamber of Commerce. Many merchants noted an upward trend beginning in 2010 and carrying right through this past season.

Most important is a feel-good attitude by the consumers (and their spending) and that boosted confidence in the region's economy.

Previously reported: 8.8 percent increase in tax revenue for consumer durable goods January 2012 over January 2011 and 7.7 percent increase in tax revenue for non durable items such as clothing over the same time period.

The Mercato Center and Fort Myers Bell Tower shops has seen overall sales increases two years in a row reported by Madison Marquette the operator for these two outlets and others.

The increase in purchasing is across the board...electronics, appliances, clothing, furniture, and home decor...reported sellers optimistically in the region.

The continued high volume for resale real estate properties and the resurgence in the new construction market including several brand new developments will lead to a sustained turnaround, I believe.

Long time Naples businesses like the family owned Wynn Market and Sunshine Ace Hardware are in their second consecutive year of increased sales in all categories from wine to speciality foods to fishing rods and reels including increases in larger ticket items.

All signs pointing upward...

Signs of a Recovery? Part 6 Consumer Spending

PART 5 | PART 7

It's hard to believe that luxury cars, yachts, and 7-carat diamond rings are bought on impulse, but that's exactly what the article is reporting.

A local boat mart reported prior to the downturn boat sales were steady 12 months out of the year supported by permanent residents and local business owners. Sales from the latter categories has yet to return. Even so, business through 2011 wasn't bad where sales rebounded 35 percent from the 2008-2009 levels. "Business is definitely back," cited the boat mart owner, "and it's a matter of time before trickles down to the year-round business owner's buying habits."

Even with the increase sales volume, impluse purchases are at a more cautious lower price point.

One local luxury car dealership reported selling about 270 vehicles since the first of the year for vehicles priced in the range of $50,000 to $300,000.

Gary Jackson, Florida Guld Coast University Economica Professor, stated that January sales tax revenue for consumer durable goods (including boats) was up 8.8 percent in Naples, up 5.4 percent in Fort Myers. Sales tax revenue for tourism and recreational sales (including jewelry) was up 4.9 percent in Naples and 10.6 percent in Fort Myers.

I find no particular surprise with regard to SUV sales. We have seen this story before, it's a direct correlation to the price of gas.

The buyer's appetite changes quite quickly and adjusts to their pocketbook. People are turning to spending just what they can afford for a vehicle likely doing without certain options like the sun roof and navigation system.

No surprise either, the more fuel efficient vehicles is dominating the showroom sales category.

Signs of a Recovery? | Part 5 - The Business Climate

PART 4 | PART 6

New, entrepreneurial small businesses are opening. A couple from Minneapolis sold there business and home there for a move to Naples and to open a midwestern-style eatery for pizza and hoagies near downtown Naples on 9th St S. A New York City garment district worker turned entrpreneur to become a first-time business owner with a new boutique that opened last Thanksgiving on Marco Island.

The Florida Scretary of State's Office reports 32,000 fewer for-profit corporations in 2009 than there were in 2007. However, 2011 marked two years in a row with increases in new for-profit corporation filings. That amounts to more than 109,000 new business entities.

In a Chamber of Commerce business survey of Naples area businesses more than 85% said the economy was holding steady or improving, split almost equally for each sentiment.

Gary Jackson, director of the Regional Economic Research Institute at Florida Gulf Coast University, said "Consumer confidence has gone up, the stock market has come up, demand for goods and services are up."

Bonita Springs saw a 33% increase in the number of new business permits in the first quarter of 2012 compared to the same period in 2011.

With regard to new businesses Gary Jackson said "...as an economist, it's all about finding unserved needs or demands or new technology to help people."

Signs of a Recovery? | Part 4... Jobs

PART 3 | PART 5

Collier County, Florida (Naples) fairs better than the state average. Gone are the days when unemployment was 2 to 3 percent during the building boom. At that time the construction industry employed more than 20,000 in Collier County (2006) and according to the 2009 census that number is 8,865.

Business owners see signs of improvement, but it's all about adjusting to the new norm. During the 2004 and 2005 building boom unemployment was at the lowest points. In 2010 unemployment was at its highest - 12 percent. There is no concensus for what the new normal might be, but there are suggestions that it will be close to 6 percent. The Florida Workforce Develeopment Board believes that when unemployment is below 8 percent that we will be in recovery mode.

In March, for the first time in 20 months, Collier County fell to the lowest point - 7.8 percent. Collier is recovering more quickly than other parts of southwest Florida and the state in general. Unemployment for Lee County in the same period was 8.9 percent while the statewide level is 9 percent.

Signs of a Recovery? | Part 3 ... Construction

PART 2 | PART 4

A very strong start to 2012 for housing overall and what has been building for the past year or more in new construction has really hit a high during the first quarter of 2012.

Collier County and the City of Naples issued more than 300 permits for new home construction in the first quarter, this busiest since the bottom in 2009. The issue rate for new permits in 2012 is running about 10 percent ahead of 2011. Commercial construction is seeing mild improvement and lags residential as it usually does.

County figures show Collier County installed 786 water meters in 2011 compared to 395 in 2008.

Then there are the developer's numbers. Toll Bros reports 25% increase in 2012 over the same period in 2011. Stock development reported an upswing in the $1 million or more market with sales of 25 homes in 2012 compared to just 10 in 2011 for the first quarter in that price range. Overall Stock Development reported a 56 percent increase in contracts in the first quarter of 2012, the highest in five or six years. Stock Development began building in high end communities such as Mediterra, Quail West, and Fiddler's Creek.

Luxury Home Solutions, a high-end builder in Fort Myers, is opening a Naples office targeting Grey Oaks and TwinEagles.

WCI Communities is opening a new phase in The Colony, part of Pelican Landing, for multi-family condominiums while Toll Bros is busy with new model construction at the new Bonita Lakes development in Bonita Springs on Imperial Parkway.

GL Homes had a grand opening in this past January for Riverstone, a development of 800+ single-family homes, and sold 100 homes in the first 90 days between $350,000 and $800,000.

Contractors specializing in remodeling are reporting their business up 30 to 40 percent in the first quarter.

Call it what you will... 

 The 20 Best Small Towns in America

According to Smithsonian.com article, Naples ranks number 9!

"Even when it’s snowing somewhere up north, around the historic Naples pier they’re catching mackerel, opening beach umbrellas and looking for treasure in the surf. Grandkids are building sand castles, pelicans are squawking and the Gulf of Mexico is smooth as far as the eye can see."

I have been visiting the Naples area since 2004 and moved permanently in the beginning of 2006. Since then there is not a year that goes by when we discover more and more. Whether you vacation here, transplant for the winter season, or call it home it's a decision that we would make over.