Naples Real Estate Appreciation

For an up to date discussion on appreciation please see to Current Report

Appreciation Outlook

For Naples, the real estate prices in the summer of 2005 were up approximately 50% from the summer of 2004 (see below for further information). In other words, something that cost $200,000 in the summer of 2004 was selling for $300,000 in the summer of 2005 and something that was $400,000 is $600,000. It's not the local economy or residents that caused that run-up. It was caused by runaway demand of investment buyers chasing a limited supply.

Even after significant gains, sellers and listing brokers were trying to get even prices during the summer and fall of 2005. Buyer demand then cooled at those prices, and available supply greatly increases. See full report here: Current Market Report.

What about continued demand and supply? No one can predict the future, but we do know some things about the past. For instance, when you look at the ages of the baby boom population, you can see that those born in the peak birth year of 1960 will not reach 55 years of age until the year 2015.

Appreciation in Naples Years 2004 - 2005

You see a lot of general, and varying statistics on appreciate rates for the area. I think one of the best methods is looking at what a home sold for and then seeing what it was worth one year earlier. The following chart is based on homes sold during May and June, that had just been purchased 10 months to 15 months earlier.

Annualized Appreciation Rates

Did appreciation vary by type of property and price range?

Details on Year 2005 Appreciation Rate

Note: This analysis represents averages and the appreciation of properties included ranged from negative to over 100%. In some cases, part of the appreciation can be attributed to improvements.

Continued . . .
Appreciation - page 2

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Buy or Sell through Someone Informed Your Naples Area Realtor Tom Doyle 239.641.4575   Sun Realty. 4980 Tamiami Trail Naples, FL 34103 More About Me

The information presented here is for discussion purposes only. Each real estate purchase is unique, nothing presented here should be interpreted to state or imply that historical trends are the sole predictor of future performance.