(Taken from news-press.com and Naples Daily News)
Homes will continue selling and prices are beginning to climb, a panel of experts reassured a sold-out crowd of 250 at the Naples Area Board of Realtors’ inaugural economic summit last month.
“Real Estate is in recovery, locally and nationally, buyers have stepped up and prices are firming up”, said Lawrence Yun, a chief economist and senior vice-president of the National Association of Realtors.
Yun predicted as much as 10 percent appreciation in home prices by December in the Naples market over last year.
One positive sign: The overall housing inventory available in Collier County. declined 13 percent from 8,762 properties in first quarter 2011 to 7,596 in first quarter 2012.
More encouraging news for the area: Overall pending sales increased 14 percent in the $300,000-$500,000 and $1 million-$2 million categories, and by 29 percent in the $500,000-$1 million category in first quarter 2012 compared to first quarter 2011.
The median home price in the quarter increased 14 percent. The median is the price at which half the homes sell for more and half sell for less.
“Boosting real estate activity is key to the overall health of the economy. Florida has shown a much better sign of recovery in terms of sales activity, not the prices, but the sales,” said Yun. “That’s the first part of the healing process. Later, prices begin to firm up.”
“Florida is more dependent on new home construction for the economy than the rest of the country. People move into Florida from other states over time,” Yun said. “Housing starts need to respond to that trend.”
The panel agreed that the feeling among the Realtor community is optimism.
