Naples Florida
Real Estate
Newsletter
                                                                                                      December  2003

Pete & Karen Smith

Pete... Downing-Frye Realty, Inc.              Karen... Vineyards Properties, Inc
  petesmith@comcast.net                           karen@vineyardsproperties.com 

Click for 2006+ updated real estate information
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Market Conditions...  Properties priced from $150,000 to $180,000 are selling very well.
The entire market is doing fairly well in the under $300,000 price range.  The higher priced
properties are doing better than 6 months ago, but still are not up to the levels of 2 years ago.  Our company is on track to do over $1 billion in closings again this year.

Building Permits are down...  Building permits are down over 20% from last year.  Some in the building industry are claiming that part of the reason is because impact fees in Collier County are nearly the highest in the state.  Others simply think it is because builders are being forced out of the county because of a lack of locations to build. 

Black Bears...  At the end of September a huge black bear was killed on Collier Blvd. near the entrance to Fiddler's Creek.  The bear's estimated weight was in the neighborhood of 600 lbs.  After the first car hit the bear, several others hit it and the last car to hit the bear flipped over and landed upside down in nearby mangroves.  In July a black bear was seen in a residential neighborhood near Naples High School.

Boat Haven...  Boat Haven sold for $19 million.  Development of the 10 acre parcel on the river will begin next spring.  It is not known exactly what will be built.  However, the developer has indicated it will include a marina with only wet slips and an open-air restaurant.

New Airline...  Jetsgo, a Toronto based airline has begun service from Toronto to the Southwest Florida International Airport. 

Fish swimming on the golf course...  At the end of September we had an unbelievable rain storm that dropped over 8" of rain in just one day.  It brought our total rainfall for the year to a level that was over what we normally get in an entire year.  In 48 hours, we got 20% of our normal annual precipitation.  Fish were actually seen swimming on the flooded golf course at the Lely Hibiscus golf course.
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                30 Year rates are right around 6%       and       3 Year ARMs are about 4.25%

Thousands of new residential units...  Thousands of new residential units will be built near the Collier Boulevard and Immokalee Road area over the coming years.  On the north side of Immokalee Road, Heritage Bay will have nearly 3,500 units.  Other project in the area will be Mission Hills, Brittany Bay, Terrafina, Parklands, and Tuscany Cove.  Also, nearby on Vanderbilt Beach Road near Collier Blvd., Wolf Creek will have over 500 units.

Investors...  Investors often ask about purchasing a condo as an investment and renting it out annually or seasonally.   If the purchaser is going to get a typical 80% mortgage, he will most likely have to dig into his own pocket because the rents will not cover the expenses.  Sometimes, you will have to dig deep.  An out-of-town owner will normally require the services of a rental agent to secure a renter.  This will cost you 15-20% of the rental income.  In addition, if you want someone to manage the property for you, it will cost an additional amount. (5-10%)  You must consider that if you have the investment for at least 5 years, you may have a major capital expense such as replacing an air conditioner for $2,500-3,000.  In addition to interest on your loan, you must allow for real estate taxes, condo maintenance fees, contents and liability insurance, and misc. repairs. 

Most purchasers will purchase in Naples for personal pleasure and if they rent their condo out part of the winter, it may help with some of the expenses.

Many investors are willing to dig into their pockets with hope of appreciation.  In many cases the property will appreciate enough to make the effort worth while.  However, sometimes the appreciation is not a certainty. 

With this in mind, it is my opinion that the properties with the best chance of attaining the highest percents of appreciation are those that are in the shortest supply.

Well over 50% of the sales are...  properties priced from $100-250,000.  Over 80% of
the sales are for properties priced under $500,000.  There is  a 2 year supply of properties on the market that are priced from $1-2 million.  And, there is almost a 5 year supply of properties that are priced at $5 million or higher. 

The hottest and best category...  for appreciation in my opinion is in the $140-180,000 price range.  There is only a  2.5 month supply of properties in the $140-160,000 range (most being over $150,000) and less than a 4 month supply of properties in the $160-180,000 price range.  I feel that as the supply dwindles, the prices will go up.

Silver Oaks in The Vineyards...  This is a perfect example of a winter
residence in a prime community that is priced at $167,000.  I feel confident that it will not be available by the time this newsletter goes online.  It will not produce enough income to carry the property and you will have to dig into your own pocket each year.  However, it is a prime candidate for seeing good appreciation over the coming years, because of the short supply.

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Road Construction...   Now going on - --  Goodlette; six lanes from Pine Ridge to Orange Blossom, then four lanes from there to Vanderbilt Beach Rd.  Livingston Road from Pine Ridge to Vanderbilt Beach Blvd. is being built now and should be open in the spring of 2004.  Next year Livingston Rd.  will extend to Immokalee Rd.  By the end of this year the Livingston Rd. connection to Bonita should be complete.  In 2005 - 2006, Goodlette Rd. will be widened to six lanes from Pine Ridge Rd. to Golden Gate Blvd.  Vanderbilt Beach Road will be widened to six lanes starting in the spring of 2004 from Airport Rd. to Collier Blvd. and take a little over 3 years to complete.

Pete Smith
Broker - Associate
Downing-Frye Realty - Naples Largest Realty Office
239-304-1150      cell: 239-370-2783
e-mail:   petesmith@comcast.net 
www.petesmithnaplesrealestate.com
www.naplesfl-real-estate.com
Selling Naples Real Estate for 20 years

Karen Smith
The Number 1 - Top Selling - Naples Realtor in the Vineyards
Vineyards Properties
239-353-3393     cell: 239-860-6018     eve: 239-304-1150
e-mail:  karen@vineyardsproperties.com
www.petesmithnaplesrealestate.com/vineyards.htm