2008 October

Naples Condo Inventory

The number of Naples condominiums available for sale at the beginning of October was 4716. The absolute number of listings increased by 41 condos over the 4675 listings at the beginning of September. Therefore, the months of inventory remained stable at 29 months. Viewing the months of inventory for the 12 month moving average trend shows a downward trend from February. The months of inventory in February was 37 months, while at the beginning of October it was 29 months.

Graph for the number of months for Naples condos available for sale.

Naples Homes Inventory

The actual number of Naples homes for sale remained level from September to October, with fewer homes for sale by 3. The total available homes was 5247 in September versus 5244 in October. However, due to the level of closed sales the months of inventory for Naples homes for sale has decreased one month from the beginning of September (29 months) compared to October (28 months). Since the beginning of February 2008 with 38 months of inventory, the months have dropped 10 months to its present level. The reader should review the graph as not only does it measure the absorption rate based upon a 12 month moving average, but reflects the 3, 6, and 9 month moving average.

The real estate market for Naples single family homes still remains a strong buyers market. A neutral market is generally around 6 months of inventory.

Below the presentation is a discussion of the meaning for the various absorption rates and how they may influence your decision for selling or buying real estate.

: Graph for the months to absorb the current number
of Naples single family home listings.

Fed Rate Drops .5 Percent

In a surprise move, the Fed slashes rates by 50 basis points today.

How will this effect interest rates on mortgages?

Federal Reserve cuts in the federal funds rate have an unpredictable impact on long-term mortgage rates. So it’s impossible to know for sure when — or even if — rates will fall as a result of the Fed’s emergency rate cut.

Adjustable rate mortgages (ARM’s) may be more sensitive to Federal Reserve rate decisions, especially if the spread between the federal funds rate and the London Interbank Offered Rate — more commonly known as LIBOR — narrows. There could be an impact due to other countries also dropping their interest rates by their central banks.

Depending on the exact nature of their mortgage, some people with ARMs may see their rate adjust downward the next time the mortgage resets.

Filed Under: Ave Marie Real Estate, Bonita Springs Florida Real Estate, Estero Florida Real Estate, Naples Florida Real Estate, Real Estate News Tagged With: ARM, fed rate, interest, libor, mortgages

Naples Condo Inventory

Naples Homes Inventory

Fed Rate Drops .5 Percent

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