The Naples housing market is firing on all cylinders this year, with strong demand from retirees, second-home buyers, and snowbirds. Here are some indicators:
- Prices continue to rise approximately 0.5% per month, according to our Burns Home Value Index™.
- Incentives/discounts are minimal, based on my tour of almost every community in the market.
- Employment growth of 7.7% year over year in December outpaces all other major MSAs in the country.
- Minimal resale inventory is on the market, as months of supply declined to 4.0 months from 6.4 months one year ago.
- Visitors are back! Southwest Florida International Airport deplanements rose 3% year over year in 2013—- the largest increase since 2007. We see a strong correlation between airport traffic and home prices in Naples, as many visitors to Naples eventually buy a house for retirement or a second home.
All of these indicators bode well for the Naples housing market in the near term and for the second-home and luxury markets for the rest of year. We are watching carefully for signs of overheating, but today the market remains one of the healthiest in the country.
