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Saturday, December 20, 2014
Buyers Rush Luxury Market in November
www.ScottSorensonRealEstate.Com
Tuesday, November 25, 2014
Condominiums an Affordable Option in Naples Market
www.ScottSorensonRealEstate.com
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Saturday, November 22, 2014
Collier home sales continue to show strength
www.ScottSorensonRealEstate.Com
NAPLES, Fla. - Winter visitors have arrived early, and they’re snapping up homes, particularly along the beach.
The latest monthly report by the Naples Area Board of Realtors showed overall existing home prices in Collier County, excluding Marco Island, rose 8.2 percent in October from the same month a year earlier, to a median of $265,000.
That’s down from its recent double-digit growth rate, because many more new homes are entering the market, said David Cobb, South Florida regional director of research group MetroStudy.
“Builders are picking up the pace,” he said.
But the supply of newly constructed homes hasn’t been enough to dampen sales of existing ones.
NABOR said closed sales rose 5.8 percent to 707 in October year-over-year, while pending sales were up 8.6 percent to 911.
Real estate broker Phil Wood, president of John R. Wood Properties in Naples, said most of the sales are being made to seasonal visitors, who are arriving earlier than usual this year.
But he said they are coming from the Northeast instead of the Midwest, which is the region’s traditional feeder market of vacation homebuyers and retirees.
That’s helped bolster prices because sellers in the Northeast have higher-priced homes and so have more equity to spend on a Naples-area property.
“It’s not just the weather that’s driving Northeasterners here,” he said. “They’re fed up with higher taxes and the cost of living.”
Demand was strongest along the beach. Overall, sales in this area, which spans the 34102, 34103 and 34108 ZIP codes, rose 40 percent in October from the same month the year before.
Kathy Zorn, broker and owner of Florida Home Realty in Naples, said demand was particularly strong in some of the older and more expensive beach neighborhoods such as the Moorings, Park Shore and Port Royal.
“People are picking up older houses and tearing them down,” she said.
Meanwhile, NABOR said 3,939 resale properties were on the market in October, a 10 percent decline from a year earlier.
But the drop was almost entirely in the supply of condominiums, which fell 19 percent, to 1,811, in October from the year before. For the same period, single-family home inventory was flat.
Demand is highest for the least expensive condos, Wood said. Condo prices haven’t increased at as quick a pace as single-family homes, he added, which makes them more affordable to workforce buyers who are competing with out-of-towners.
But both homes and condos continue to move fast, said NABOR president Pat Pitocchi. Overall, average days on the market dropped to 73 in October from 107 a year earlier, a whopping 32 percent decline.
“The housing market is trending up, and people are feeling better about their finances,” she said. “That’s when urgency kicks in.”
NAPLES, Fla. - Winter visitors have arrived early, and they’re snapping up homes, particularly along the beach.
The latest monthly report by the Naples Area Board of Realtors showed overall existing home prices in Collier County, excluding Marco Island, rose 8.2 percent in October from the same month a year earlier, to a median of $265,000.
That’s down from its recent double-digit growth rate, because many more new homes are entering the market, said David Cobb, South Florida regional director of research group MetroStudy.
“Builders are picking up the pace,” he said.
But the supply of newly constructed homes hasn’t been enough to dampen sales of existing ones.
NABOR said closed sales rose 5.8 percent to 707 in October year-over-year, while pending sales were up 8.6 percent to 911.
Real estate broker Phil Wood, president of John R. Wood Properties in Naples, said most of the sales are being made to seasonal visitors, who are arriving earlier than usual this year.
But he said they are coming from the Northeast instead of the Midwest, which is the region’s traditional feeder market of vacation homebuyers and retirees.
That’s helped bolster prices because sellers in the Northeast have higher-priced homes and so have more equity to spend on a Naples-area property.
“It’s not just the weather that’s driving Northeasterners here,” he said. “They’re fed up with higher taxes and the cost of living.”
Demand was strongest along the beach. Overall, sales in this area, which spans the 34102, 34103 and 34108 ZIP codes, rose 40 percent in October from the same month the year before.
Kathy Zorn, broker and owner of Florida Home Realty in Naples, said demand was particularly strong in some of the older and more expensive beach neighborhoods such as the Moorings, Park Shore and Port Royal.
“People are picking up older houses and tearing them down,” she said.
Meanwhile, NABOR said 3,939 resale properties were on the market in October, a 10 percent decline from a year earlier.
But the drop was almost entirely in the supply of condominiums, which fell 19 percent, to 1,811, in October from the year before. For the same period, single-family home inventory was flat.
Demand is highest for the least expensive condos, Wood said. Condo prices haven’t increased at as quick a pace as single-family homes, he added, which makes them more affordable to workforce buyers who are competing with out-of-towners.
But both homes and condos continue to move fast, said NABOR president Pat Pitocchi. Overall, average days on the market dropped to 73 in October from 107 a year earlier, a whopping 32 percent decline.
“The housing market is trending up, and people are feeling better about their finances,” she said. “That’s when urgency kicks in.”
Friday, October 24, 2014
Housing is missing 700K in sales
ScottSorensonRealEstate.Com
WASHINGTON – Oct. 24, 2014 – A drop in single-family home sales – both new homes and existing homes – over the past few years equates to a real estate market that is at least 700,000 shy in annual home sales, according to estimates by David Crowe, the chief economist for the National Association of Home Builders.
He arrived at that estimate by taking into account historical market averages in the late 1990s and early 2000s, which showed home sales at about 5.6 million per year – made up of 900,000 new-home sales and 4.7 million in existing-home sales.
But the latest loss in sales can largely be attributed to a drop in new-home sales, Crowe notes. Single-family new-home sales peaked in 2005 at 1.3 million, but plunged by 77 percent to 300,000 in 2011. It's slowly been regaining. Meanwhile, existing-home sales – heavily lifted by distressed sales to investors in recent years – dropped 40 percent from peak to trough, Crowe notes.
"As demand for more homes dried up, households lost their owned homes through foreclosure, and the number of newly formed households shrank, the existing supply of homes was more than sufficient to satisfy demand," Crowe says. "Adding more inventory to a saturated market made little sense" at the time.
First-time buyers will be key to making up for the loss in sales, Crowe says. Sales of existing-homes to first-time buyers are more likely to result in the seller buying a new home, he notes.
"First-time buyers expand the need for more homes even if they aren't the primary purchasers of those new homes," Crowe notes. "First-time buying was 40 percent of the existing market and 30 percent of the new-home market in in more stable periods. Those shares, of a smaller market, have dropped to 27 percent and 16 percent, respectively. …
"First-time home buyers continue to struggle with their own financial limitations but as the economy expands and jobs become more available and better paying, the core 25- to 34-year-old first-time buyers will come back."
WASHINGTON – Oct. 24, 2014 – A drop in single-family home sales – both new homes and existing homes – over the past few years equates to a real estate market that is at least 700,000 shy in annual home sales, according to estimates by David Crowe, the chief economist for the National Association of Home Builders.
He arrived at that estimate by taking into account historical market averages in the late 1990s and early 2000s, which showed home sales at about 5.6 million per year – made up of 900,000 new-home sales and 4.7 million in existing-home sales.
But the latest loss in sales can largely be attributed to a drop in new-home sales, Crowe notes. Single-family new-home sales peaked in 2005 at 1.3 million, but plunged by 77 percent to 300,000 in 2011. It's slowly been regaining. Meanwhile, existing-home sales – heavily lifted by distressed sales to investors in recent years – dropped 40 percent from peak to trough, Crowe notes.
"As demand for more homes dried up, households lost their owned homes through foreclosure, and the number of newly formed households shrank, the existing supply of homes was more than sufficient to satisfy demand," Crowe says. "Adding more inventory to a saturated market made little sense" at the time.
First-time buyers will be key to making up for the loss in sales, Crowe says. Sales of existing-homes to first-time buyers are more likely to result in the seller buying a new home, he notes.
"First-time buyers expand the need for more homes even if they aren't the primary purchasers of those new homes," Crowe notes. "First-time buying was 40 percent of the existing market and 30 percent of the new-home market in in more stable periods. Those shares, of a smaller market, have dropped to 27 percent and 16 percent, respectively. …
"First-time home buyers continue to struggle with their own financial limitations but as the economy expands and jobs become more available and better paying, the core 25- to 34-year-old first-time buyers will come back."
Friday, October 17, 2014
3rd Quarter Inventory Remains Tight
3rd
Quarter Inventory Remains Tight
Naples, Fla.
(October 17, 2014) - Limited inventory continues to be the story of the
Naples area real estate market, according to the third quarter report released
by the Naples Area Board of REALTORS® (NABOR®). Inventory of existing homes
decreased 9 percent from 4,080 homes available in the 3rd quarter of 2013 to
3,702 homes in the 3rd quarter of 2014. This tight inventory affected sales
activity as demonstrated by a 10 percent decrease in pending sales from 2,548
in 3rd quarter 2013 to 2,304 pending sales in 3rd quarter 2014; and an 11 percent
decrease in closed sales from 2,339 in 3rd quarter 2013 to 2,093 closed sales
in 3rd quarter 2014.
Contrary to the reduction of
pending and closed sales in the 3rd quarter of 2014, real estate agents across
Collier County reported being very busy keeping up with the growing demand.
This anomaly, as confirmed by a panel of brokers analyzing the NABOR® 3rd
Quarter 2014 Naples area market statistics, is likely a result of the market
experiencing an influx of new home construction that, while not reported in the
Southwest Florida MLS, has replenished the void resulting from a decreased
inventory in the resale market.
"I don't think the market
need has changed," said Steve Barker, Advising Broker for Equity Realty.
"Agents are showing homes every day because the new construction market
has finally caught up to the demand. But the resale market is still desirable
as location continues to be a factor for many new home buyers and the new
construction market can't be everywhere."
Pat Pitocchi, NABOR® president
and corporate trainer at Downing-Frye Realty said, "The market report does
a good job at showing us a big picture view of how the resale market in Collier
is behaving in general. However, it does not report all new homes sales, which
appears to be a considerable segment of the current market activity according
to reports from local brokers."
Wes Kunkle, a commercial broker
at Kunkle Realty, pointed out that the 21 percent decrease in overall pending
sales in the $300,000 and below market drove the overall 10 percent decrease.
"Overall pending sales in every price segment over $300,000 increased in
the third quarter 2014. Overall closed sales increased in two of the five price
segments, $300,000 to $500,000 and $1 million to $2 million, as well."
The NABOR® 3rd Quarter 2014
Report provides comparisons of single-family home and condominium sales (via
the Southwest Florida MLS), price ranges, and geographic segmentation and
includes an overall market summary. The NABOR® 3rd Quarter 2014 sales statistics
are presented in chart format, including these overall (single-family and
condominium) findings:
- Pending sales of single family homes over $2 million increased 26 percent from 43 in 3rd quarter 2013 to 54 3rd quarter 2014.
- Pending sales of condominiums between $1 million and $2 million increased 29 percent from 38 in 3rd quarter 2013 to 49 in 3rd quarter 2014.
- Overall closed sales in the $300,000 to $500,000 category increased 13 percent from 398 in 3rd quarter 2013 to 451 in 3rd quarter 2014.
- Overall closed sales in the $1 million to $2 million category increased 14 percent from 91 in 3rd quarter 2013 to 104 in 3rd quarter 2014.
- Overall median closed price increased 13 percent from $234,000 in 3rd quarter 2013 to $265,000 in 3rd quarter 2014.
- Overall median home price of homes over $300,000 decreased 7 percent from $530,000 in 3rd quarter 2013 to $493,000 in 3rd quarter 2014.
- Overall inventory decreased 9 percent from 4,080 homes in 3rd quarter 2013 to 3,702 homes in the 3rd quarter of 2014.
- Overall inventory of single family homes in the $300,000 to $500,000 market increased 15 percent from 422 in 3rd quarter 2013 to 487 in 3rd quarter 2014.
According to Kathy Zorn,
broker/owner at Florida Home Realty, "Homes priced under $300,000 may make
up over 60 percent of our market but this is not our entire market. In fact,
the 3rd quarter report showed an increase in inventory of single family homes
in the combined price categories above $300,000, which accounts for 1,564 homes
or 42% of the overall 3rd quarter inventory.
NABOR® also released its
September 2014 Market Report, which revealed the following:
- Overall pending sales increased 2 percent from 810 in September 2013 to 829 pending in September 2014.
- Overall closed sales decreased 3 percent from 9,919 in the 12-months ending September 2013 to 9,585 closed sales in the 12-months ending September 2014.
- Overall median closed price increased 14 percent from $230,000 in the 12-months ending September 2013 to $262,000 in the 12-months ending September 2014.
- Overall inventory decreased 9 percent from 4,080 in September 2013 to 3,702 in September 2014.
Broker analysts agree that new
construction within the last year is a welcome addition to the Collier County housing
market.
Friday, September 19, 2014
Low Inventory Impacts Market
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Tuesday, August 26, 2014
No Summer Vacation for REALTORS® Median Closed Price Increases $35,000
ScottSorensonRealEstate.com
Naples, Fla. (August
22, 2014) - "Stable" continues to be the adjective real estate
experts use to describe the Naples area housing market after analyzing a
recent report tracking July activity released by the Naples Area Board of
REALTORS® (NABOR®), which tracks home listings and sales within Collier County
(excluding Marco Island). Overall pending and closed sales for July increased in
all price categories except the $300,000 and under market. The overall median
closed price in July increased 16 percent from $225,000 to $260,000; with a 12
percent increase in the $300,000 and under market, from $155,000 to
$174,000,driving the overall price increase.
"Due to demand in the under
$300,000 market, which resulted in a 25 percent decrease in that segment's
inventory, the market's total inventory in July fell 13 percent," said
Phil Wood, President & CEO of John R. Wood Realtors. "However, it's
important to note that 15 percent of the total inventory available included 539
newly constructed homes. Our report tracks some new construction activity,
typically 'spec' homes, however, it does not include new home inventory being
added from the 30 new communities currently under development in the
area."
"The report shows us clear
inventory decline in the $300,000 and below market," said Wes Kunkle, a
commercial broker at Kunkle Realty. "The fact is: we're running out of
homes to sell in this price category."
Kunkle continued, the trend can
be seen in the statistics, as pending sales for homes under $300,000 decreased
at almost the same rate as its inventory. The report also shows new summer
trends by neighborhood. In July 2014, the only increase in pending sales of
single family homes was in the Naples Beach and South Naples areas.
Interestingly, the only area to experience a positive increase in inventory was
East Naples.
"Appreciation is one key
factor driving prices in the lower end of the market," said Dr. Shelton
Weeks, Department Chair of Economics & Finance, Lucas Professor of Real
Estate and director of the Lucas Institute for Real Estate Development &
Finance at Florida Gulf Coast University. "These homes are in demand and
quick to sell."
Brenda Fioretti, Managing Broker
at Berkshire Hathaway Home Services Florida Realty, noticed another interesting
trend in the July report, "Overall pending sales in the $2 million and
above price segment increased 47 percent from 19 homes pending in July 2013 to
28 homes pending in July 2014. For single family homes in this segment and
timeframe, pending sales increased 100 percent from 11 to 22; yet pending sales
for condominiums in this price segment decreased 25 percent from 8 to 6."
The NABOR® July 2014 Report
provides comparisons of single-family home and condominium sales (via the
Southwest Florida MLS), price ranges, and geographic segmentation and includes
an overall market summary. The NABOR® July 2014 sales statistics are presented
in chart format, including these overall (single-family and condominium)
findings:
- Overall pending sales decreased 13 percent from 975 homes in July 2013 to 845 homes in July 2014.
- Overall closed sales had no change from 12-months ending July 2013 to 12-months ending July 2014.
- The overall median closed price increased 16 percent from $225,000 in 12-months ending July 2013 to $260,000 in the 12-months ending July 2014.
- Overall inventory decreased 13 percent from 4,086 in July 2013 to 3,562 in July 2014.
- Average days on market were 77 for July 2014.
- Pending sales for single family homes decreased 10 percent from 505 in July 2013 to 453 in July 2014. In the $2 million and above category, pending sales increased 100 percent from 11 in July 2013 to 22 in July 2014.
- Closed sales for single family homes decreased 1 percent for 12-months ending July 2014. However, closed sales increased in all price categories except the under $300,000, which saw a 20 percent decrease.
- The median closed price for single family homes increased 25 percent for the 12-months ending July 2014. However, all price categories above $500,000 saw a decrease in median closed price.
- Inventory for single family homes increased 1 percent. The largest increase was in the $300,000 - $500,000 price category, which saw a 14 percent increase.
- Average days on market for a home in the $300,000 and under category was 50 days in July 2014.
- Pending sales for condominiums decreased 17 percent for 12-months ending July 2014.
- Closed sales for condominiums increased 1 percent for the 12-months ending July 2014. Activity in this area was most impressive in the $1-$2 million price category which had a 25 percent increase, and in the $2 million and above price category which had a 35 percent increase.
- The median closed price for condominiums increased 12 percent for the 12-months ending July 2014.
- Inventory for condominiums decreased 19 percent with all price categories experiencing a drop.
- Average days on market for a condominium in the $300,000 and under category was 56 days in July 2014.
- Average days on market for a condominium in the $2 million and above category was 95 days in July 2014.
"Traditional sales dominate
the market. In July 2014, they increased 35% from 345 in July 2009 to 603 in
July 2014," said Carmen Vasquez, owner/broker of US Prime Realty.
"There were 330 non-traditional [short sale or foreclosed] home sales in
July 2009. In July 2014 there were only 102, a significant reduction."
There were also more closed sales
recorded in the first seven months of 2014 (5,952) than there are available in
our current inventory (3,563), which NABOR® experts believe is an encouraging
message to consumers looking to sell or buy.
Wednesday, July 23, 2014
UCF releases four-year Fla. economic forecast
Report highlights
- As of May 2014, 41.7 percent of single-family home transactions were cash sales, down slightly from 46 percent one year earlier. It's the fourth year that cash sales were at 40 percent or higher, suggesting that investors continue to play a role in Florida's housing market.
- Housing starts continue their ascent and will be more than double their 2013 levels by 2017. Total starts will be over 95,200 in 2014, just over 136,000 in 2015, 162,700 in 2016 and 166,200 in 2017. This growth in residential construction activity will catalyze growth in the commercial sector and "push employment growth in the construction sector into double-digits.
- Real personal income growth for 2013 slowed to 1.8 percent. From 2014-2017 real personal income growth will accelerate steadily and average 4.2 percent, with 2014 growth at 2.8 percent, which will rise to 5 percent in 2017.
- Low inventories and rising house prices have triggered a surge in home construction. Housing starts will average 31.3 percent growth during 2014-2017. The most rapid growth will be in 2014 and 2015 when starts will grow at an average rate of 51.6 percent.
- Payroll job growth year-over-year should average 3 percent in 2014, 2.6 percent in 2015, 2.7 percent in 2016 and 2.3 percent in 2017. Bye the third quarter of 2015, payrolls should fully recover to their pre- recession highs.
- Labor force growth in Florida will average 2.3 percent from 2014-2017. In the four previous years, it was just 0.9 percent.
- The unemployment rate may not accurately show the increase in jobs as more unemployed Floridians reenter the labor pool. The pace of decline will slow dramatically and could reverse direction at times. Still, the unemployment rate is forecast to fall to 5.6 percent by the end of 2017.
- Underemployment in Florida, a broader measure of labor market weakness than headline unemployment remains at 14.3 percent through the 1st quarter of 2014, down from 19.3 percent in 2010.
- Sectors projected to have the strongest average job growth during 2014-2017: Construction (11.3 percent), Professional and Business Services (4.6 percent), Trade, Transportation & Utilities (4 percent), Education & Health Services (2.5 percent), and Leisure & Hospitality (2 percent).
Sunday, March 16, 2014
February Market Activity Strong, Seasonal Outlook Good
www.ScottSorensonRealEstate.com
Naples, Fla. (March 14, 2014) - Over 40 contracts were initiated every day on average in February making it a busy month for Collier County REALTORS® according to the February 2014 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). Overall pending and closed sales increased 5 percent each from 10,629 pending sales in the 12-months ending February 2013 to 11,151 in the 12-months ending February 2014, and 9,308 closed sales in the 12-months ending February 2013 to 9,735 in the 12-months ending February 2014.
To view the entire report, visit www.NaplesArea.com
Naples, Fla. (March 14, 2014) - Over 40 contracts were initiated every day on average in February making it a busy month for Collier County REALTORS® according to the February 2014 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). Overall pending and closed sales increased 5 percent each from 10,629 pending sales in the 12-months ending February 2013 to 11,151 in the 12-months ending February 2014, and 9,308 closed sales in the 12-months ending February 2013 to 9,735 in the 12-months ending February 2014.
Overall closed sales decreased 5
percent in the $300,000 and below price segment, which encompasses almost
two-thirds of the existing home sales market, from 6,149 in the 12-months
ending February 2013 to 5,823 in the 12-months ending February 2014.
Conversely, the February report showed a 20 percent increase in closed
sales for all homes over $300,000 from 3,159 closed sales in the 12-months
ending February 2013 to 3,912 for the 12-months ending February 2014. The
largest decrease in inventory continues to be in the $300,000 and below price
segment which saw a 20 percent decrease versus a 12 percent decrease in
inventory for all other price segments combined.
"Homes under $300,000 made
up 66 percent of the market in 2013 but we are starting to see that figure
decline in 2014," said Pat Pitocchi, NABOR® president and corporate
trainer at Downing-Frye Realty. "Two factors are driving this change:
median closed prices are going up and pushing these homes into a higher price
category; and non-traditional sales [short sales and foreclosures] are
disappearing."
As the report demonstrated, of
the 670 homes that closed in February 2014, only 82 were non-traditional sales.
That's a 10 percent decrease from a year ago when 687 homes closed in
February 2013, of which 152 were non-traditional.
The report continued to show the
majority of activity occurred on either end of the market with the middle
market showing stability. Overall median closed prices for homes $300,000
and below increased 14 percent from $145,000 in the 12-months ending February
2013 to $165,000 for the 12-months ending February 2014, while overall median
closed prices for homes $2 million and above increased 7 percent from
$2,805,000 in the 12-months ending February 2013 to $3,000,000 in the 12-months
ending February 2014. Yet for homes priced in between these two price
categories (i.e., $300,000 - $2 million) the report shows virtually no change
in overall median closed prices from the 12-months ending February 2013 to the
12-months ending February 2014.
The NABOR® 2014 February Report
provides comparisons of single-family home and condominium sales (via the
Southwest Florida MLS), price ranges, and geographic segmentation and includes
an overall market summary. The NABOR® February 2014 sales statistics are
presented in chart format, including these overall (single-family and
condominium) findings:
- Closed sales for condominiums in the $2 million and above price category increased 102 percent from 55 in the 12-months ending February 2013 to 111 in the 12-months ending February 2014.
- Median home prices in the under $300,000 single-family home market rose 15 percent from $155,000 in the 12-months ending February 2013 to $179,000 in the 12-months ending February 2014.
- Overall Days on Market is at 94 for February 2014.
- Overall median closed price increased 17 percent from $210,000 in the 12-months ending February 2013 to $245,000 in the 12-months ending February 2014.
- Overall inventory decreased by 15 percent from 5,443 properties in February 2013 to 4,633 properties in February 2014.
- Pending sales in the condominium market rose 6 percent from 5,356 properties in the 12-months ending February 2013 to 5,696 properties in the 12-months ending February 2014.
Steve Barker, Advising Broker for
Equity Realty, and Carmen Vasquez, owner/broker of US Prime Realty, agree and
contend that the 2014 season has been one of the busiest ever.
"We are experiencing
multiple offer situations for homes priced on either end of the market,"
said Vasquez. Barker added, "People are not getting a second chance
to take a second look at homes for sale in the lower and upper price ranges
because that's where the majority of sales activity is happening right now.
Buyers must make quick decisions to avoid losing the home they want."
Mike Hughes, Vice President and
General Manager of Downing-Frye Realty summed up real estate activity by
stating, "This season is turning out to be good for both buyers and
sellers. Basically what the report is telling us is that inventory
remains tight and pricing steady. As a result, buyers must act fast.
The home you look at today may likely be gone tomorrow, so it's important
to have a professional REALTOR® partner on your side to help you identify
value; negotiate a fair price, terms, date of possession and often the
inclusion or exclusion of repairs and furnishings or equipment; and avoid
missing a great opportunity."
To view the entire report, visit www.NaplesArea.com
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