"Mark Browne" wrote in message
news:l%eec.12366$_K3.49314@attbi_s53...

"NOYB" wrote in message
om...

snip

The majority of the people in Naples are retirees who already earned
their
money and are bringing it down here in their retirement. The retirees
now
are the baby boomers...a huge population with enormous wealth and very
little debt. An entire service population has grown as a result, and
the
service industry feeds on the retirees. As long as the population
continues
to grow faster than attrition (ie--from people dying), the demand for
housing will grow. Over the past year, Collier County's population grew
by
almost 15%. Consequently, the demand for housing (expensive housing)
drove
the median price up more than 40%.

Is it sustainable? Probably not at the same rate of increase. However,
you'll never see a true "bust" where prices begin to fall. They'll just
level off until the next boom.


What Dr. Tooth says mirrors what I know of Florida.

So Backyard and Dr. Tooth, which is it?


http://www.google.com/groups?q=g:thl...ing.google.com

or what Dr. Tooth said above?

I can't speak for the rest of Florida, but I know that I see about 40-50 new
patients every month...and the average age of those patients is probably
around 60.


If this *is* just small pockets of old farts then housing prices will
tumble
when:
1) These old folks die and the houses come up for sale.

And the houses get razed to make room for new mansions...particularly if
they're on the water or on large (1 acre or more) pieces of property.


2) The interest rates start to rise to more normal levels.

They may be old and rich, but they are not stupid.

I have heard that nearly 60% of home sales are cash deals in Naples...with
no financing involved. Interest rates will not affect the housing market a
whole lot. In fact, a rise in interest rates will give retirees a better
return on their conservative investments...and give them more money to spend
on housing.