Time to Buy

Southwest Florida's housing market has heated rapidly the past few years, with demand-and prices-soaring. For several months last year, Naples had the highest median resale value for homes in Florida, and other cities in the region have posted double-digit appreciation in home prices for several years. Each month, Lee County continues to issue a record-breaking number of building permits, and last year we even heard tales of bidding wars, waiting lists and investors making a tidy profit flipping homes.

But fortunately for buyers in search of a Southwest Florida home, the market is showing signs of calming down, with prices beginning to level out and supply finally catching up with demand. In Naples, the all-time high median price of $495,000 in October 2005 had dropped to under $480,000 by the end of the year. And if you're looking in the upper level of the market, the news is even better, with many homes in the top tier now spending a considerable time on the market and prices even being reduced on some.

But don't expect to see a dramatic drop in the region's housing prices, say local experts. Our warm winters and beautiful beaches will keep attracting buyers no matter the price of a home, and the coming rush of retiring baby boomers should also fuel housing demand. Significant depreciation in housing prices, say economists, generally occurs when a number of factors are present, including a biggie-prolonged job loss.

"Florida is creating jobs," says Lawrence Yun, senior economist for the National Association of Realtors. "As long as Florida has nice weather, you can expect a continued inflow of people from other parts of the country. Florida probably even has more room to move higher in home prices."

Your new Southwest Florida home looks like a solid investment. And as Yun says, a strong housing market benefits us all. "It feeds into the local economy," he says. "People feel wealthy; they spend more money at restaurants. It helps local governments. They're in better financial shape, and there's less of a need to cut services."

Of course, the greatest benefit of owning a home here is less quantifiable but just as real. It's the special magic of Southwest Florida, from the heartening warmth of winter days to the blazingly beautiful sunsets on the Gulf. That's what makes searching for a home here worth all the effort-and the final price. This magazine is designed to help make that search easier, with a comprehensive guide to Southwest Florida neighborhoods, examples of what your money will buy, interior design advice, and a listing of top new communities and builders. Enjoy the hunt!

-Nanci Theoret, Real Estate Editor