Understanding Park Shore Housing Inventory: Supply and Demand

Understanding Park Shore Housing Inventory: Supply and Demand

In 1964, Raymond L. Lutgert purchased a stretch of land on a pristine stretch of the Gulf Coast. Lutgert spent the next four years working with architects and engineers, developing the 760 acres into what would eventually become the neighborhood of Park Shore in Naples, Florida. Today, the area boasts lavish Mediterranean-style homes that overlook beautiful Venetian Bay. This sought-after quiet community of approximately 6,400 residents gains popularity from its luxurious homes, peaceful surroundings, and walkability. The idyllic neighborhood also offers music events, yoga, and cycling activities.

The ins and outs of Park Shore's housing market

In addition to real estate purchases made by full-time residents of Naples, there is also a thriving market for those investing in holiday homes and vacation properties. The entire area of Naples is popular due to the climate and amenities. Of the 10 neighborhoods that make up the city of Naples, Park Shore is one of the most popular.

Real estate prices in the area keep increasing as the demand for properties goes up, and the average time a Park Shore home is on the market remains low due to the demand for this popular area. If you’re looking for Park Shore homes for sale, it’s best to work with a local agent like Walter Patrick.

Housing inventory: everything you need to know

Housing inventory or active listings represent the number of properties currently categorized on the market as homes for sale. The economy coupled with supply and demand will greatly impact the housing inventory. The real estate housing market comprises a network of buyers and sellers in a particular area.

Does the type of housing inventory impact supply and demand?

Housing inventory consists of current homeowners putting their homes on the market and new homes under construction. If the demand for homes in an area isn't met by existing homes on the market, that will encourage the home construction industry to build more homes.

New construction considers the median income of the area's current dwellers. Other factors for consideration include interest rates and the cost of building materials.

Factors that affect Park Shore's housing demands

As a neighborhood in Naples, Florida, Park Shore houses many retirees. Retirees flock there primarily due to the weather and tax advantages. However, several non-constant factors may change the demand for the Park Shore area yearly.

Significant influencers of the market include:

  • Economic conditions.
  • Interest rates.
  • Housing inventory.
  • Local climate.
  • Area amenities.
Similarly to the rest of the nation, the economy continues to improve in Naples, specifically in the Park Shore neighborhood.

The housing inventory stands as relatively balanced in the Park Shore areas. The availability of luxury homes remains limited, but the demand focuses on more affordable living. Interest rates average about 7%, with a slightly lower rate for a 15-year mortgage.

Retirees and young families continue to move to Naples for the weather, especially the mild winters. However, extreme weather resulting from climate change and rising costs, such as flood insurance, also concern some buyers.

Naples continues to make great strides in counteracting and planning for the effects of natural disasters, such as severe hurricanes and other consequences of the warming ocean.

Demand is high for Park Shore real estate

The overall economy in Naples, Florida, is healthy. The unemployment rate remains two points below the national average. Sales tax is also relatively low, and state income tax remains zero. Currently, the interest rate of a 30-year conventional mortgage is 6.99%. The rate goes incrementally down with a shorter-term mortgage, with a 10-year mortgage at 6.5%.

The city of Naples recognizes the impact of human behavior on the Earth's changing climate and actively addresses climate change by doing the following:

  • Planning and adapting for climate change impacts, such as violent storm surges and flooding.
  • Reducing emissions of greenhouse gases throughout the community.
  • Developing a Climate Adaption Plan to prepare the community for the impact of climate change on public health, the infrastructure, and the ecosystem.

Factors affecting the housing supply in Park Shore

Crossover factors influencing both supply and demand include the economy, interest rates, and amenities of the area. Some of the factors that impact supply include labor availability, cost of materials, local legislation, and local sentiment.

How do these factors influence the housing supply in Park Shore?

In addition to the post-pandemic economic recovery, the cost of building supplies continues to fall. This encourages builders and developers to seek contracts to fulfill demands.
Local legislation encouraging the housing development industry also helps to create new jobs and drive down unemployment. Some recent legislation promotes the growth of affordable housing and encourages families and young professionals to relocate or stay in the area. However, though the law signed by Florida Governor DeSantis encourages the building of new homes, it does not address rent control.

Florida Governor DeSantis signed Senate Bill 102 (The Live Local Act) into law on March 29, 2023. The total package of $711 million far exceeds any previous housing development legislation for affordable housing. It also provides property tax exemptions for housing developers substantially increasing the number of development contracts.

How does Park Shore's housing inventory affect the market?

When demand exceeds supply, prices will inevitably go up, making it a seller's market. These price hikes are especially likely in chronically low inventory properties such as luxury homes. Interest rates may play a part, but most Park Shore buyers with the intention of selling or investing see the purchase at a higher interest rate as relatively safe due to the stability and desirability of the area.

When supply exceeds demand, it becomes a buyer's market. Currently, building contracts align fairly closely with demand, making a somewhat balanced market throughout Naples.

What buyers need to know

Buying a home in Naples, especially in the Park Shore neighborhood, requires careful preparation. In a competitive market, buyers need to work with a qualified and experienced realtor to guide them through the process. A realtor will know which homes are available and which are about to come on the market and will help buyers find the best one for them and their circumstances.

It's also advisable to secure preapproval to know the qualified mortgage amount. Prequalifying will give a buyer an advantage over the competition.

What sellers need to know

The fact that demand remains high and most homeowners in Naples possess healthy home equity indeed makes it a seller's market. Many sellers will receive close to their asking price and, in the event of a bidding war, may even sell their home for above the price listed.

When selling a home, listing it with an accurate description is essential. In addition to providing information about the house, it's also advisable to record information about the area's amenities and the quality of the schools. Working with an experienced realtor makes sense, as they will make suggestions regarding needed repairs and improvements and may even make staging recommendations.

What investors need to know

The community of Naples expects continued growth during 2023. The thriving economy, as does the climate and amenities, contributes significantly to this continued growth.

Demand for homes in this area also adds to the value and subsequent sales price of homes in Naples. The Park Shore neighborhood offers an exemplary class of homes along with luxury shopping and dining options and fabulous water views. These features put the demand for homes in Park Shore at an even higher level.

The risk of purchasing a home in the Naples area remains relatively low. Economic consumer confidence, fire, and drought come with a low risk, with flood representing the only significant risk. Flood insurance is readily available and advised for those who purchase a home in the Naples area.

Strategies for navigating a competitive housing market with low inventory levels

No matter the market condition, it's always wise to secure financing before making a serious offer on a home. Those looking for luxury or waterfront parties need to prepare for possible bidding wars or at least strike quickly when they find a desired property.

Working with a real estate professional who knows the market and the specific area also makes sense if you want to find the ideal home and secure the best possible financial terms, whether the intent is to live there for a lifetime or sell relatively soon as an investment.

Walter T. Patrick can help you with your real estate needs

If you want information about selling or buying a home in Naples, specifically in the Park Shore neighborhood, now is a great time to act. Walter T. Patrick possesses the perfect combination of expertise and passion for the area. As a sales associate with the prestigious firm of Premier Sotheby's International Realty, Walter's resume includes over 30 years of corporate and entrepreneurial success, with 15 years involving luxury real estate.

Walter's strong work ethic and reputation for honesty and integrity attract high-profile clients who demand exemplary service and results. If you need more information about buying, selling, or investing in a property, contact Walter T. Patrick today.

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Walter is known as a trusted consultant to anyone looking to market or purchase luxury estates, as he possesses a unique combination of luxury real estate expertise, proven sales and marketing skills and a deep understanding of the latest digital marketing techniques.

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