Naples Real Estate

Market Insights

Naples Florida Real Estate Market Update December 2021: No surprise that the market is still HOT. Less inventory every month. More sales. Same old story. We know that we are in one of the best and most desirable places in the county. The BIG question is going to be, what are things looking like for 2022?

The Federal Reserve said they’ll be raising interest rates and we should expect 3 increases before 2023. What does that do to the housing market? Well, if rates go up for borrowers, then most likely we will see fewer borrowers. If we have fewer borrowers, then we should have more inventory (more homes on the market). If we have more homes on the market, then values will drop because homes won’t be selling as fast and as often. That’s the prediction for the county as a whole.

BUT, WHAT’S GOING TO HAPPEN WITH FLORIDA AND NAPLES?

I don’t think we will see a huge change this year. I think it will affect us a little bit, but southwest Florida historically has a higher percentage of cash sales than the rest of the country. The demand is still going to be there, but it might slow down a little because of our record prices and the increased interest rates.

If you are thinking about selling… I would say this is the year to do it and take advantage of the TOP OF THE MARKET. We have been increasing our values over the last 20 months, but I’d predict we will see a plateau in prices in the next year.