- Real estate sales are still taking place in Naples. Is it slower? Definitely. Has it changed? For sure. As one local real estate attorney said, during this time of year, his office is typically doing 250-300 closings per month. He reports that March was right in line with that. April, however, will be short, running around 200 closings. Beyond that, is anyone’s guess.
- Lenders are still lending money. One local mortgage lender reports that she is still getting loans done with buyers who have a 580 credit score. Other lenders are increasing their credit score requirements and adjusting other protocols, but loans are still able to close in 30 days.
- During the 2005 real estate boom, houses were being purchased sight unseen. We didn’t nearly have the tools available that we do today. So much in real estate can be done virtually. Everyone’s safety is the priority, but technology has made it so we can continue to conduct business.
- Now, more than ever, it is critical to have a real estate attorney handling your contract and/or transaction. There are new addenda and amendments that speak directly to Covid-19 and it is imperative that you understand how those may impact your purchase or sale.
- This pandemic is just for now; it is not forever.
Recession Does Not Equal Housing Crisis
- 1950 – home values increased 6.1%
- 1981 – home values increased 3.5%
- 1991 – home values decreased 1.9%
- 2001 – home values increased 6.6%
- 2008 – home values decreased 19.7%
- In 2008/09, our area had 2.5 to 3 years of housing inventory available for sale. We were just coming off a huge market boom, and yet, almost overnight, everything shut down. Before Covid-19, our area had just over 6 months of inventory.
- The household debt in 2008 was 134%. Before Covid-19 it was 96%, a historic low.
- In 2008, the overall GDP decreased by 19.7%. Economists predict that we are going to actually increase 1 to 2% this year overall.
- In 2008, the stock market dropped 57%. Now, it is predicted that we will drop 20% before we start seeing growth.
Advice to Sellers
Advice to Buyers
If you are considering moving to Naples or selling your Southwest Florida home, I’d love to chat with you.