The Affordability Cycle of Naples Housing

Naples housing prices have been increasing at one of the fastest rates in the country. The past year has posted record gains. “Nine straight hikes in short term interest rates have done little to dampen demand partly because…long-term interest rates have not followed suit.”

Some market watchers insist that when long-term rates do begin to increase, sales of Naples housing will become stronger and prices will increase. “The prospect of higher mortgage rates prods everyone who’s been sitting on the fence to finally sign on the dotted line.”

Only when interest rates are so high that they increase monthly mortgage payments beyond the reach of most Naples housing buyers will demand begin to slow. Affordability is a key factor in this scenario. However, once Naples housing demand slows, prices will start to weaken, making Naples housing an affordable option once again.