Thursday, February 23, 2012

2011 Pensacola Real Estate Market Recap & Predictions for 2012

Update on the Pensacola Real Estate Market
Courtesy of Pam Keen, Broker/ Owner of Realty Masters of FL
I recently attended the North Florida Chapter CRS Economic Summit at the Pensacola Association of Realtors. The event was well attended and gave me the info I needed to feel confident in advising my clients about the 2012 market and what to expect.
There was plenty of data offered comparing Pensacola to the state of Florida and to the National housing market. This information was provided by Rick Harper from The University of West Floridaand Metro Market Trends.

2011 Year End Pensacola Real Estate market recap
First of all, Pensacola’s real estate boom was not as high as the boom that occurred in the state as a whole, so Pensacola did not experience as much of a bust. In essence Florida had a really big bust, and I guess you could say we were one of the best of the worst.
Now we are looking at a market that is slowly showing signs of recovery, but it seems our local market was largely moving “sideways” in 2011.
  • Negative sign: Overall the median price of a home in the Pensacola area went down slightly. 
  • Positive sign: The number of homes on the market (inventory) went down as well!
  • Positive sign: The volume of sales increased, especially in our condo market where locally volume was up over 25% from 2010 sales levels. 

Home affordability is at its best since 1970!
According to Lawrence Yun, chief economist for the National Association of Realtors, home affordability is at the highest point since 1970 when they began tracking the data. He feels the reason the market is still moving slowly is because some would be buyers are being squeezed out of the market by higher than normal credit requirements.
To sum it up, experts are saying the US, Florida, and Pensacola local housing markets are moving in the right direction, and we should see slow growth in 2012.

Second home buyers flock to Northwest Florida
As for me, my first two closings in 2012 were second home buyers, and I have several more prospects that are interested in buying second homes. Our mild winters coupled with the beautiful white sandy beaches of the Gulf Coast are surely appealing to those snow birds this year and hopefully the great pricing we currently have on waterfront homes and condos will entice some of snowbirds to look towards buying as a viable option.

Experts are predicting continued population growth in Florida as more baby boomers retire.

Last of all, Rick Harper did talk about the increasing need for Real Estate Professionals and Property Managers in Florida. This is largely because so many realtors were not able to survive in this profession during the downturn and are now employed elsewhere. It's also largely due to the increasing number of renters. Realty Masters is the largest property management firm in the Pensacola area, and there is definitely a demand for rental homes in the Pensacola area!

Let me answer your questions.
Pam Keen, ret. Navy Captain
Call me- I specialize in dealing with buyers looking to capitalize on low prices now coupled with increasing rents and values in the years to come, so if you are considering a second home or investment in the Pensacola area I would like to offer you my 33 years of experience both as a Realtor and Property Manager.
Your Pensacola Real Estate Expert,
Pam Keen, Broker/ Owner Realty Masters of FL
& Broker Associate with Keller Williams Gulf Coast
Call me on my cell (850) 232-2200
Email me your questions Pam@PensacolaRealtyMasters.com
Charts provided by Metro Market Trends during presentation

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