Many of the homebuyers we worked with in 2004 and 2005 had a sense of urgency about their process—almost a fear that the “baby boomers” would buy up all of the affordable homes in Southwest Florida.  If that happened, they reasoned that they would never be able to afford a home here.  It was a tumultuous time in the Florida housing market, with prices soaring by the week.  Homes were purchased, and sometimes “flipped” within a month for huge profits.

Once the bubble burst, homebuyers pretty much disappeared from Southwest Florida.  Sales came to a near standstill, and some “flippers” began the long walk down Foreclosure Lane.  A very high percentage of home sales were under “distress” conditions.  Many homeowners who were unable to sell ended up owing more on their mortgage(s) than their homes were worth.  This further fueled the foreclosure and short sale scenario. 

Too many developers and home builders turned to Bankruptcy Courts; Wall Street and Banks turned to taxpayers for a bail out.  The housing industry and the mortgage industry dragged the national and world economies down with them.  A large number of brokerage firms went out of business, and real estate boards lost many of their licensed Realtors.  Home values were cut in half, or worse.

Now, in 2011, some of us see a light off in the distance.  We hope and pray it is not attached to an onrushing locomotive.  We think it is the light of recovery and stability in the housing market.  We will know more a year from now.

Homebuyers have returned to Southwest Florida—largely from the Midwest, Northeast, Canada, and Europe–but they seem quite different from the buyers of 6 or 7 years ago.  A sense of desperation is lacking for most current buyers, who are willing to be patient and look at all options before making a commitment.  Many are looking for a home for themselves, rather than a flip for a quick profit.  They see this time as a great opportunity to “pickup” a really nice home at a bargain price.  They don’t expect home prices to double in the next few years, and are taking a long term approach to the ownership of real estate.

For those of us Realtors who have survived the first decade of the 21^st century, this is a refreshing time to be in the real estate business.  We are getting back to basics, and it feels like we are back in the “real world”.  And maybe, just maybe, some of those “baby boomers” are still headed this way.

The 5-year slide in Southwest Florida home prices has been a painful experience for local homeowners.  However, one group’s pain is another group’s gain.  More and more potential home buyers from “Up North” are getting excited about the bargain prices available throughout the Naples, Bonita Springs, and Estero communities.  We consistently get inquiries from Northerners who are ready to “buy a piece of this paradise”.  Unfortunately, some of these folks lack a clear picture of their wants and needs in Florida.  Perhaps this series of questions will be helpful in bringing that picture into clear focus. 

1.    Single Family Home or Condo?  There are pros and cons to each type of housing.  Important considerations may include: 

    a.    How much time do we intend to spend in the home?  Will it be a seasonal home, or our sole residence?  If less than full time, will we want to rent it part of the time to generate income and offset expenses?  Will we allow family and/or friends to use the home when we are away?

    b.    How “social” are we?  Are we OK with a lot of people in a small area, or do we need our privacy and “space”?  Can we live with group decisions of condo associations?

    c.    If less than a full time resident, do we want to “forget about” our home when we are away, knowing that management is handling any hassles that may come up?

    d.    How many cars will be kept here?  Is it important that each vehicle be housed in a garage or carport?  Do we need garage space for other activities, such as hobbies?

    e.    What is traffic like within, and around, the community?  Some communities offer easy access in and out.  Some are located off busy arteries, with significant traffic noise and dangerous traffic patterns.

    f.     How close to home are banks, grocery stores, restaurants, drug stores, medical facilities, retail, professional offices, etc.?  If so inclined, how easy would it be for us to walk or ride a bike to these establishments?

    g.    If we have a strong religious affiliation, where is our likely new church located?