Duke Warnier of Westbury Properties is going to talk us through how the economic upheaval of the past couple of years is affecting the local property market. Duke has been in the industry for many years, and his company, Westbury Properties manages a portfolio of some of the area’s premier real estate.
“The real estate market as a whole has been an interesting space to inhabit over the past two years. The heights of 2006 when property prices were higher than most other places in the country to now and a 32% drop in property value.”
We have gone from one of the most valued property markets in the country to one of the most undervalued. Demand is still high, but credit is hard to get. The deposit requirement is now higher than ever, as is the qualification criteria. So there are some great bargains to be had, but the net doesn’t spread as wide as it once did.
Some analysts say we’re headed for a ‘double-dip’ where the economy contracts, then recovers and contracts again. This belief is given credence by the dearth of credit available right now. I’m not sure I subscribe to that. The quantitative easing measures put forth by the government have made great steps in speeding up our recovery, but now it seems government debt is the new sub-prime.
Both businesses and consumers are tightening belts and eliminating waste which bodes well for the future. I think the worst is over and we will slowly continue the recovery through 2010 and into 2011. The US economy is subdued but strong. Many business have battened down the hatches and are sitting tight until things improve. They have worked hard over the past couple of years to survive, and when things recover they will be in a great position to take advantage of new opportunity.
While most of the recovery so far has been generated by government demand, such as the ‘Cash for clunkers‘ scheme and other public spending initiatives, the private sector has also started reacting to the more optimistic climate. This is essential because without private sector input, the government alone won’t be able to sustain the recovery.
That said, the market is still active and has bucked the trend, thanks to the climate, the area and some great inventory. Naples is still a beautiful place to live, recession or no recession. People still want a slice of paradise.
Despite the slow recovery, the lack of credit and other factors, there are plenty of bargains to be had, and still plenty of money floating around to take advantage of it. This has meant the market, and Westbury in particular has weathered the storm quite well. We still have inventory to move, and clients to satisfy, and that’s all that matters really, and I know other agents are in the same position, which is a good place to be for the market as a whole.
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