If you’re looking for a change of pace or a new investment opportunity, look no further than Naples, Florida! Here’s what you need to know about the real estate market in this sunny Florida locale:
Why Move to Naples?
Moving is a big decision and you need to make sure that you’re moving to the right place. So why should you move to Naples? Here are some of the top reasons why people are moving to Naples:
- Weather: Weather is a big factor in why so many people are moving to Naples. Naples experiences warm and sunny weather throughout the year. With no cold and definitely no snow, Naples sounds like a paradise to many people from the north that are sick of shoveling snow and freezing cold temperatures for over half the year.
- Activities: There is so much to do in Naples while enjoying the amazing weather. For starters, you can hit the beach and get a tan. From there, you can enjoy a round of golf. If you’re a nature-lover, you can check out the Everglades National Park.
- Taxes: While this factor applies to the entire state of Florida, it’s definitely worth mentioning. If you live in Naples, you don’t have to pay state taxes — leaving you with more disposable income.
- Jobs: Speaking of income, you may be able to earn even more in Naples thanks to a booming job market and low unemployment rates. Earlier this year, there were over 6,000 open jobs in the area, primarily in the service, healthcare, and business fields.
Why Invest in Naples?
On the other hand, if you’re looking for somewhere to invest rather than somewhere to move, here’s what you need to know about Naples and why it’s a great place to invest:
- Naples is a popular tourist destination — making it a great place to buy beachfront condominiums and rent them out on a short-term basis.
- Naples has a track record of generating one of the best long-term returns in real estate investing in the United States over the last ten years.
- Naples properties often come with lower insurance premiums compared with their counterparts on the Atlantic coast that are more at-risk for hurricanes.
- Naples experiences a lot of real estate turnover due to its older population with an average age above 65. As a result, you can always continue to grow your real estate portfolio in the Naples area.
- Despite high turnover rates, the prices of Naples properties are protected by geographical factors. There’s no way to “expand” Naples and build more since it’s surrounded by the Gulf and the Everglades on all sides. As a result, you can rest assured that more inventory won’t affect the price of your Naples investments.
The Naples Buyer’s Market
Here are some important statistics and numbers that you need to know about the Naples buyer’s market — whether you’re looking for an investment property or a primary residence:
- Naples has a median sold home price of $475,000 and a median listing price of $530,000 — representing a 21.8% increase and a 23.5% increase year-over-year, respectively.
- While these numbers seem high, it’s important to note that these numbers are driven upward by large amounts of expensive real estate deals that close in the area on a regular basis.
- Redfin scores Naples as a “somewhat competitive” real estate market with a score of 46 out of 100. This means that some homes get multiple offers, the average homes sell for about 1% below listing price about 10 days after listing.
- On average, homes in Naples sell after 59 days on the market — a number that has trended downward since the beginning of the pandemic around April of 2020.
- Large apartment complexes make up a majority of Naples’ housing at 58.29%.
- Homes in the Naples area tend to be small — with 55.35% of homes in the area having two or fewer bedrooms.
The Naples Renter’s Market
Here are some important statistics and numbers that you need to know about the Naples renter’s market if you’re looking to purchase an investment property and rent it out:
- The average rent for a one-bedroom apartment in Naples is $1,325 a month which is a 0.6% increase from last year.
- The average rent for a two-bedroom apartment in Naples is $1,635 a month which is a 3.06% increase from last year.
- The average apartment rent in Naples has increased by $181 or 11.2% over the past six months — with one-bedroom units increasing by 13% ($1) and two-bedroom units decreasing by $136 (-7.7%).
- 40% of the households in Naples are renter-occupied.
- The average size for an apartment in Naples is 938 square feet.
- More than 95% of apartments in Naples can be rented for less than $2,000 a month and 36% can be rented for between $1,501 and $2,000.
- The most affordable neighborhoods in Naples are Royal Harbor with an average rent of $1,178 and Aqualane Shores with an average rent of $1,252.
The Future of the Naples Real Estate Market
While it’s impossible to predict the future, let’s talk about what we can expect from the Naples real estate market down the line. For starters, we can expect prices to remain relatively stagnant. Unlike many other markets in Florida and around the country, Naples hasn’t experienced exponential price increases in recent years despite COVID-19.
Instead, Naples experienced a large increase in home prices from 2012 to 2016 — with average prices increasing from just over $200,000 to nearly $330,000 in that time. But just because Naples hasn’t seen huge price increases thus far doesn’t mean that it’s going to remain that way.
More than 1,000 people a day are moving to Florida and this mass migration doesn’t seem to be slowing down any time soon. Additionally, as we begin to move past the COVID-19 pandemic and open borders again, we can expect a new influx of foreigners from Canada and beyond looking to buy in the Naples area — either as permanent residents or as “snowbirds.” If you don’t want to wait around for demand to increase even further, then now is the time to buy in Naples.
How to Jump Into the Naples Real Estate Market
But how can you jump into the Naples real estate market? For starters, you need to get pre-approved by a lender to know how much you can afford. Depending on what type of loan you’re looking for, there are tons of different options out there when it comes to lenders — don’t just assume that you have to go with a big bank!
Instead, you could try working with a mortgage broker. Mortgage brokers act as middlemen between lenders and buyers in exchange for a fee. Usually, this fee is about 1% of the loan value. Working with a broker is a good idea if you’re looking for a specific type of loan, if you’re looking for more guidance on the mortgage process, or if you’re looking for a more efficient homebuying process.
No matter which approach you choose — lender or broker — just make sure that you’re working with the right professionals. Look for people that are responsive, transparent, and trustworthy. If you’re looking for a bridge loan to help you quickly and easily get through the closing process, then you need to work with Vaster. Vaster goes above and beyond with its team of lending professionals that are always ready and willing to provide you with the assistance you need to buy in the Naples area.
Once you’re pre-approved by a lender and know what you can afford, it’s time to start your home search with an experienced real estate agent. Your agent should know the Naples area well and be able to tell you more about different neighborhoods, schools, etc. After you’ve found the perfect property, they will also help you write a competitive offer.
Based on the Naples real estate market, you may need to be willing to offer slightly above the asking price to get an edge on other offers. Based on the advice of your agent, you may also want to consider waiving contingencies. Once your offer has been accepted, you finalize and close on your loan and finally become a Naples resident!
Final Thoughts on the Naples Real Estate Market
Get in on the Naples real estate market before everyone else does! Reach out to the lending experts at Vaster to secure the best loans at the best rates so that you can make the most out of your investment.
Sources:
Naples Florida Real Estate Market 2020: Housing Prices & Forecast | Norada Real Estate
9 Things to Know Before Moving to Naples: Living in Naples, FL | Uphomes.com
Naples, Florida a Good Place for Investment | Realestateagent.com
Pamela Garcia : October 31, 2021
