Pensacola Florida Real Estate Market Report
(Single Family Detached Homes Escambia & Santa Rosa County)
The real estate market has remained steady for the past 18 months. Looking back at the turnaround it actually began approximately during the spring of 2012. First-hand experience during that spring of dealing with multiple offers and days on market was a wake-up call.
The market data shows the change dramatically. Just like when the downturn occurred in an obvious change for someone that is fully involved in the market while maintaining perspective (situational awareness). The actual downturn in the Pensacola market began in October of 2005. I know everyone seems to point to the year 2007 for the real estate crash but that is when it was obvious that the avalanche had occurred. Hello distressed market…..
My first short sale that went to closing was in the spring 2007. Then from that point on the need to learn the short sale, foreclosure, and the preemptive market of helping homeowners avoid foreclosure would be a major facet of my real estate sales business. Situational awareness, get on the wave first before everyone sees the nice looking swell develop.
Where are we today? We are still at record low interest rates. The average mortgage interest rate since 1972 is 8.92% so anyone crying about the rates being at 4.5% with the possibility of going to 5 to 5.5% should put things in perspective, situational awareness. When it is time to buy you buy. When it is time to sell you sell. When it is time to invest you invest. The big question for you is WHY you want to buy, sell or invest!
Today in the Pensacola Metro Area the hot part of the market is from $75,000 to $174,999. The monthly inventory level between these price points:
- $75,000 to $99,999 is 3.8 Months
- $100,000 to $124,999 is 4.6 Months
- $125,000 to $149,999 is 5.3 Months
- $150,000 to $174,999 is 5.0 Months
- $175,000 to $199,999 is 8.3 Months
- Then there is the price points of $1 to $49,999 which is at 2.9 Months (investors)
- Investors are also buying in the other aforementioned price points
- A stable market is when there is a 5 to 6 month inventory level
- A level of 7+ months indicates a Buyer's market
My Link to the full real estate market report at PensacolaAreaProperties.com
Speaking of investors, my investors are purchasing below the $75,000 point and looking to sell in the $125,000 to $174,999 range. Rehab and sell in the bracket where there is a steady stream of qualified buyers that will be impressed with the finished product.
Investor Tip: Just like in the military flying business where we had ingrained in our heads, “No Approach is too good that you can’t Wave-off!” the same is true that no investment property is too good that you can’t pass up on.
Jack Lara, Broker-Associate Main Street Properties, Inc. 1313 Creighton Rd Pensacola, FL 32504
Office: (850) 912-4123 “Have a Great Day!”