Overheating Naples Housing Market Finally on the Cool
It was only a matter of time before the Naples housing market started showing signs of overheating. Mortgage rates are on the rise, and the further they rise, the slower homes will sell. And while economists don’t predict a plunge in Naples housing prices, gone are the days when real estate values would increase weekly.
Economists surveyed by Blue Chip Economic Indicators believe that mortgage rates will hit 7 percent by early 2006, and when that happens, they expect Naples housing starts and sales to drop by 5 percent or more.
Yet the Naples housing slowdown “will be relatively mild compared with past downturns,” thanks to good job and income growth. “Prices will rust, not bust, for the next few years,” especially as baby boomers and immigrant first-time buyers continue to fuel demand.
Economists surveyed by Blue Chip Economic Indicators believe that mortgage rates will hit 7 percent by early 2006, and when that happens, they expect Naples housing starts and sales to drop by 5 percent or more.
Yet the Naples housing slowdown “will be relatively mild compared with past downturns,” thanks to good job and income growth. “Prices will rust, not bust, for the next few years,” especially as baby boomers and immigrant first-time buyers continue to fuel demand.
