Rental properties are almost becoming an endangered species in the housing-market-world. Rental inventory is at an all-time low and if you plan on booking a rental property for a few months in Naples, you should begin your search at least six months to a year in advance. Since the selection of what you would need to accommodate your family may or may not be available (especially if it is high season), planning is crucial. Also, searching for rentals on your own may be stressful. There are several agents that specialize in rental properties who can aid you with finding the perfect location and home to vacation at with ease.
In addition to the low supply and high demand, consumer confidence is at an ultimate high since the economy’s bounce back from the recession. On a national level, by 2017, home prices should match the levels of the highest peak of the 2006 housing market boom! CoreLogic is a CA-based corporation that provides substantial financial, property and consumer information, analytics and business intelligence that has provided several statistics that predict these changes in the most advanced way.
Annual rental prices are on the rise have also affected those who do not want to buy and those who simply cannot be home owners at this moment in time due to financial limits. In previous years, rents only rose 3.3 percent per year. 2014 to 2015 was a game changer by racking it up to rising 4.3 percent per year. This significant rise is also affecting those who are new annual renters, but want to become homeowners, making it difficult to save for a substantial down payment.
Other explanations for prices rising and the tight supply is:
1. The turnover time from investment properties is not quick enough leaving useless inventory until finished.
2. Homeowners are not willing to sell because of uncertainty for relocating.
3. New construction that has yet to be finished.
One of the Naples’ most known landmarks has been closed for construction and will reopen in November this year. The mayor, John Sorey, a few city councilmen, and Naples residents gathered at the entryway of the Naples Pier to remove the first 10 wooden planks with golden painted crowbars. 18-inch sections of the planks are for sale to the public for $100. 1,000 pieces will be cut from 200 boards and then the Naples Historic Society will stamp the pieces with a city brand to preserve a part of Naples history.
John Sorrey mentioned that they are in a “tight time schedule” and that “every day counts”. Construction has just begun and is planned to be completed in the last week of October. The new Pier is being built from ipe, a hardwood that is also known as Brazilian walnut and has the potential to last 30 years.
Reconstruction to the Pier is necessary for the safety and to accommodate the capacity of all Naples visitors. It also resembles the expansion and rising economy that is inevitably noticeable. Be ready for larger restroom facilities and a freshly built Pier that will last 10 years longer than the time period of the last renovation that took place in 1995.
As the economy continues to flourish and a result of successful spring home buyers have recently caused mortgage rates to increase. 30 year fixed mortgage rates have inevitably risen from 4.02 percent last week to 4.08 this week. The rate on a 15 year fixed-rate mortgage is now 3.24 percent from 3.21 percent last week.
About a year ago, the mortgage rates for a 30 year loan stood at 4.12 and a 15 year loan at 3.22 percent. Expert predictions from a poll by Bankrate.com say 59% expect rates to go up over the short term, 8% predict a drop, and 33% predict stability.
Data issued Tuesday showed that home prices increased at a solid clip in April, led by double-digit gains in Denver and San Francisco. The Standard & Poor’s/Case-Shiller 20-city home price index rose 4.9 percent in April from 12 months earlier, roughly the same annual pace as March (Florida Realtors).
Strong job growth and low mortgage rates have prompted greater demand for housing, boosting home values. The continued gains are at roughly double the pace of wage growth, but current levels appear more manageable than the double-digit home price increases seen during parts of 2013 and 2014(Florida Realtors).