Naples Relay For Life

Amerivest Realty of Naples Florida participated in the 2006 Relay For Life event that occurred on April 21 & 22nd. They are proud to announce that they exceeded their goal by more than 50%, raising over $15,000 dollars toward the fight against cancer. During the 18hr overnight event, Amerivest Realty team members were always on the track with 4 team members not sleeping a wink. Amerivest Realty is proud of the team members, supporters and very thankful to all those who donated and made this year's event a huge success.

Members:
Ali O'Connor - Andrew Schmidt - Anne Laurie - Bernie East - Betty Winton - Bob Hewes - Chris Daenzer - Christian Derby - Darcy Mellen-Sullivan - Dennis Robinson - DeRonda Luciano - Erin Kovacevic - Gail Turner - Jan herrington - Jo Beth Nicoll - Joanne Henle - Joseph Ballarino - Joyce Etchison - Kimberle Woodland - Madeline Denison - Michelle Braccino - Perrine Phipps-Dowling - Richard Prebish II - Robby Gemert - Rosemarie Tamagni - Ryan & Leah Paige - Shannon Lefevre - Sherri Fowler - Steve Barker - Susan Gallo - Susan Owens - Tracy Hirt - Vanessa Franklin - Vicki Hall - Vivian Haddad

What is a Real Estate "Bubble"?

A real estate bubble, more commonly referred to as a “Speculative Bubble”. In real estate as in many other markets, for example the stock market, when we see increased buying interest that drives prices higher with buying activity feeding on itself it creates the opportunity for a speculative bubble. People buying just because they feel prices are going higher without a fundamental reason for the purchase many times. Buying for speculation is Ok by all means but when you have substantial buying activity without fundamentals supporting prices, it lays the foundation for a market correction. As in the stock market with rumors or news that may bring increased buying, the prices can increase quickly. Prices will most always reach a point that buying slows or stalls and starts a correction. Typically in a correction we see prices fall faster than when they were increasing. As the prices fall in a correction, prices may fall below fair market value creating a good buying opportunity. Once prices bottom and buyer interest starts to increase, generally prices will start to increase slowly finding fair market value.

We have seen many reports on the Naples Florida real estate market these last few months giving a wide range of opinions. The Naples real estate market will always be a great long term market but as any market we do have market cycles from time to time and in fact we’ve just experienced a “Speculative Bubble” for most of the Naples real estate market. We must understand and remember that not all neighborhoods within the greater Naples area responded the same but for the most part the Naples area has experienced a “Speculative Bubble”. Very simply we’ve seen very strong speculative buying these last few years driving prices higher at a very fast pace and once it reached a level that the buying started to slow, the speculative buyers stopped and the market slowed and prices started to decline, starting the correction phase. The Naples market in general started slowing last summer in July 2005. The question is always how much will prices decline before buyer interest returns to start decreasing the inventory levels, looking for a more normal market with a balance of supply and demand. The important thing to remember is that all the neighborhoods in the Naples area will vary to some degree in how much market conditions affect them. Some may decline more than others and some may see buyer interest return sooner than others. A large part of the Naples market is seasonal, second home buyers and this market may see larger price declines and be slower for buyer interest to return for a second home buyer does not need to purchase.

If someone has a property they want to sell now is the time to be selling and you need to price the property correctly to sell it now before prices move lower. For those looking to buy now is the time to be looking for opportunities as prices are declining and some neighborhoods start to bottom.

I understand that many may not agree with these comments but the market speaks for itself for we have already seen price declines in the Naples area of 20% or more in some neighborhoods. The unknown is always how much lower prices may decline before we see buyer interest increase which will depend on a number of factors. Not all neighborhoods will respond the same so it’s very important for a seller or buyer to have an experienced Realtor with a proven record and knowledgeable of the community to assist them in times as this in making the best decision.

Naples MLS Stats for March 2006

MLS statistics released for improved residential property (not lots) for all Naples MLS users. The Naples real estate market has settled into a slow but steady pace, with just over 400 pending sales each month this year. Inventory still continues to rise, but with the Easter Holiday upon us, it should start to lighten. Simply put, this is the best buying opportunity Naples has seen in years. There is plenty of inventory to choose from and negotiations will be based on actual sales as opposed to the momentum purchases we saw last year.

Closings For The Month Of
Mar 2006: 559
Mar 2005: 965

Pendings For The Month Of
Mar 2006: 445
Mar 2005: 1,333

YTD Closings
2006: 1,426
2005: 2,368

YTD Pendings
2006: 1,275
2005: 3,665

Inventory: 9,543 (approx. a 18 month supply) - Active (active and active with contract status) residential inventory in all Naples areas as retrieved from SunshineMLS today.

Prior Reports: August 2005 - September 2005 - October 2005 - November 2005 - December 2005 - January 2006 - February 2006

Reported By: Joe Ballarino, Broker
Amerivest Realty, Naples Florida

Positano Place Community Profile Added

Amerivest Realty has added a new community profile for Positano Place on their website at www.AmerivestRealtyofNaples.com. There is a description and photos of the community along with a list of properties for sale.

For more information visit this page at:
http://www.amerivestrealtyofnaples.com/Positano-place

Joe Ballarino named NABOR's 2005 Realtor of the Year

Excerpts from an article by Laura Layden, Naples Daily News
Sunday, April 9, 2006

Joe Ballarino is not one to sit on the sidelines. He gives back to his profession and the community.

For all that he does, Ballarino was named the 2005 Realtor of the Year on Saturday night by the Naples Area Board of Realtors. He received the award during NABOR’s Annual Night of Honors held at the Naples Beach Hotel & Golf Club.

“Those honored are very deserving,” said Jo Carter, NABOR’s president. The theme for the event, which takes a year to organize, was “The Pride of Ownership.” It attracted a crowd of about 250.

“It’s our biggest night of the year to honor our board members that have participated,” said Penny Wilson, a marketing representative for Midwest Title in Naples and chairwoman of this year’s event. “Most people do not get paid to do this. It’s all volunteer.”

For the past three years, Carter has nominated Ballarino, a former NABOR president and president and CEO of Amerivest Realty in Naples, for the Realtor of the Year award. The honor — the highest given out by NABOR — recognizes Realtors who have helped shape the profession. “He’s served in so many areas the members of NABOR, always with a smile. He’s always willing to help,” Carter said.

The Realtor of the Year winner was kept secret until Saturday night. “It’s fabulous,” a shocked Ballarino, 42, said after receiving the award. “It’s by far the highest honor I could get.” The award, he said, is extra special coming from NABOR. “I keep trying to give more,” he said. “I seem to get more back every time.”

During his presidency, Ballarino spearheaded the development of NABOR’s first leadership training program and set the stage for the association’s involvement with Habitat for Humanity. Under his rein, NABOR was the first to donate to a political action committee working to save the Naples Zoo and it gave $10,000 to a disaster relief fund to help victims of Hurricane Charley.

Over the years, Ballarino has served on numerous NABOR committees, including budget and finance, intranet, logo and multiple listing service, or MLS. He has been instrumental in revising MLS rules and in the design of www.Naplesarea.com, NABOR’s official Web site. He helped develop the SunshineMLS, a computerized multiple listing service for Naples and Bonita Springs. Ballarino also has been active in the Florida Association of Realtors and the National Association of Realtors.

Read the full article

NO HOUSING BUBBLE IN NAPLES REAL ESTATE

By Steve Barker. ABR, GRI, CIPS,
Professional Realtor.
Amerivest Realty, Naples
Cell : (239) 293-4327
sbarker@AmerivestRealty.com
www.NaplesBeautifulHomes.com

There are so many negative articles in local and national press claiming Naples real estate is over valued that it is no wonder property owners are worried and concerned for their investment. The unfortunate scenario is that if these negative articles continued, people talk them selves into believing it to be true and it will have become a "self fulfilling prophesy".

It is therefore refreshing to read on “Planet Realtor” of a recent study from a pair of Pomona College economics professors, Gary Smith and Margaret H. Smith who recently presented a paper in Washington DC which concluded that fears of a real estate bubble are overblown and homes remain undervalued in many markets. They found bubble conditions in only one of the 10 metropolitan U.S. housing markets evaluated and it was San Mateo County in the San Francisco Bay area, NOT NAPLES, Florida.

So, why all this talk about a housing bubble any way? The Smiths note in their paper that as housing prices have risen dramatically in recent years, some researchers have concluded that homes are now priced well beyond their fundamental values. But the Pomona College professors question the implicit assumption that market prices previously matched fundamental values and now have exceeded them. "Perhaps housing prices were too low in the past and recent prices have brought market prices more in line with fundamentals," they write.

Some there articles have said our property market is 84% “over valued” when compared to “cost” but it is not the same thing. The price of gold per unit of weight can be considered the cost but work and form that gold into something beautiful and the “value” will be more linked to it’s beauty and desirability than to its cost. Does that mean it is overvalued to the person who purchases it, no.

He also advises against trying to predict which direction home prices are headed, telling the cautionary tale of a Claremont, Calif., professor who in 2003 decided against buying because he had read in the newspaper that home prices were 20 percent too high. It turns out home prices rose dramatically in the area instead.

Hurray for these brave people who speak against the scare mongerers trying to promote panic and gloom in our market.

The full study can be found on The Brookings Institute website at: Click Here