Real Estate Rebound Imminent: reports Naples Daily News 9/13/07
Naples Daily news reported today that the Naples Real estate market rebound is imminent following their interview with Dr Lawrence Yun, who is the Director of research and chief economist for NAR.
Dr Yun was invited to Naples by the Local Area CIPS Council and was speaking to the areas Press and Real Estate agents on the “Market trends and forecast” for the Real Estate.
Dr Yun said that the biggest problem facing real estate right now is not a lack of buyers or mortgage availability to make a purchase as many believe but confidence to make the purchase, mainly due to the constant negative press coverage of late.
He explained some of this lack of confidence by relating to the current reporting of high foreclosure rate of homes and the Sub-prime mortgage problems currently being experienced through the country. Florida had very few foreclosures in the past, so any increase will automatically look very bad but his detail showed that most come from high risk Sub-Prime loans, some of which didn’t need to have been a sub-prime loan in the first place but presumably were used to complete a quick & easier closing by the lender or borrower. However, to put it in context, these risky Sub-Prime loans still only account for 9% of the total loan market. There is still a lot of finance available for people wanting to buy, but not if your a high risk.
There are Buyers but their hesitation to buy was “due to a lack of confidence, not necessarily due to the lack of financial wherewithal. But with the pent-up demand accumulating, it’s just a matter of time before it’s unleashed onto the market” he said.
“The recovery will not be a robust recovery … but nonetheless it will be an improvement. What people experienced back during the real estate boom was a once-in-a-lifetime situation,” he added.
Dr Yun also said that Naples real estate market is not like most others in the country.
“The current real estate cycle is very unique in that nearly all past local real estate market cycles have been associated with prolonged job losses. Yet jobs are continuing to be added to the local economy.”
To read the full article click here
See the online video from ABC7 (Fast Forward to wards the end)
Steve Barker. ABR, GRI, CIPS,
Broker AssociateAmerivest Realty, Naples
Cell : (239) 293- 4327
Fax : (239) 687- 4071
Steve@sebarker.com
http://www.sebarker.com/
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CIPS is the NAR designation for “Certified International Property Specialist”
To visit the Naples area CIPS council web site, Click Here
