Collier County Housing Costs/ Income Ratio
In Collier County median Incomes to median homes values push above 38% of a buyers monthly income, home prices have grown 29% faster than incomes, primarily due too; low inventory and falling mortgage rates. A typical family earning $60,000 per year w 20% down can afford a mortgage payment of $1,800 per month, and qualifies them for about $370,000 when rates are at 4.0%. If rates shoot to 6% or 8% in the next coming 5 years that same family can only afford $250k-$280k and would be priced out of collier county.
The lack of inventory in our market in Naples keeps prices pushed at about 10% to 15% higher than closed comparable sales / values. Incomes may keep prices stable, but if the fed has rates increased then a decline may ensue, each 1.0% drop in interest rates allows home buyers to pay or a seller to raise the price of a home by 12%+/- The same happens in reverse if rates increase. Rates will not get any lower than they are now,i see them currently at 3.6% to 4%. My advice, Do not wait!
Check to see what you can afford here. http://www.zillow.com/mortgage-calculator/house-affordability/
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