Pensacola Area Real Estate - Mortgages

How does the current economic condition affect my ability to buy or sell a home?

Here is my take as I have experienced, and after speaking with a few local lenders this past week:

We have heard a lot of news about credit freezing up and tightening. It is all relative. Yes, credit has been tightening up over the last year, and it is certainly not as easily obtainable as in recent years. However, it is currently not as tight as it has been throughout history. If we look back, there have been times where 20% down was not uncommon and it was far more difficult or even impossible to get financing if one had struggling credit.

In order to purchase a primary residence or second home in today's market a 10-20% down payment is necessary for a conventional loan. Let's keep this in perspective - this is in order to borrow 80-90% to make the purchase.

Interest rates are hovering around a historical low of 6% fixed on a conventional 30 year loan.

Loans are available to those who qualify with good credit. In a nutshell, qualified buyers can make a home purchase if they have cash for down payment and closing costs.

Competition is steep when it comes to selling. Properties need to stand out amongst the crowd, and thus pricing needs to be of today's fair market value. Even in today's market, properties can sell quickly if priced right, and there are qualified buyers out there who can get financing for your property.

We are still buying and selling in today's market. Although it hurts, this is a correction that was absolutely needed, and we will be better off in the long run because of it.

Pensacola Area Real Estate

Pensacola, FL neighborhood of Ferry Pass ranked by CNN Money as 25 best places for affordable homes!

Follow this link to full article at CNN Money.com

25 best places for affordable homes - Ferry Pass, FL (16) - Money Magazine*

*This article can also be accessed if you copy and paste the entire address below into your web browser.http://money.cnn.com/galleries/2008/moneymag/0809/gallery.bpretire_affhomes.moneymag/16.html

Is now a good time to buy?

If you have been wondering whether now is a good time to buy a home, consider this:

• There is a great selection of homes on the market.
  
• Interest rates are at or near historic lows - the rate of a 30 year fixed rate mortgage is averaging about 6.5%, lower than it's been at most any time in US history
  
• Homes have substantially increased in value over time - the median price of a home has risen nearly 900% since 1971

Pensacola Area Real Estate

This graph illustrates Residential Monthly Listing Sales from 1999-2008. Although sales are up from January to April 2008 we will be anxiously waiting to see what the summer months bring. Public impression is improving, consumers are acknowledging that "it is a good time to buy". Interest rates remain exceptionally low, inventory offers a lot for buyers to choose from, and sellers are negotiating. Although there are numerous issues in the real estate market, as the media will attest, buyers are finding there are opportunities and investment values are to be had.

These numbers are gathered from the Pensacola Association of Realtors monthly sales figures.

Protest Over Proposed Taxation Of Pensacola Beach Leaseholders

May 12, 2008 WEAR ABC3 See Video

Protest Over Proposed Taxation Of Pensacola Beach Leaseholders

Chris Reid: "Public use of our beaches, and access to our beaches, could in effect be in jeopardy. People don't realize it's not just Pensacola Beach resident issue - it is an issue for everyone who enjoys Pensacola Beach."

When the Santa Rosa Island Authority issued 99 year renewable land leases to Pensacola Beach residents, lessors were under the impression that they were exempt from paying property taxes on the land and improvements made to the property. Leases were granted to develop the beach and to help afford an infrastructure on the island. Residents of the beach paid for water supply, sewage treatment, road construction and overall system development. The Santa Rosa Island Authority has maintained Pensacola Beach, managed development on the island, and has protected public land. Once taxation of improvements on the land has occurred, it is likely that the next step for the county would be to tax the land. In doing so, leaseholders would be given title to the land. Current and/or future property owners could limit access to beaches once considered to be public, likewise, without management by the Santa Rosa Island Authority future land uses could come into question. The Santa Rosa Island Authority is funded independently from Escambia County by the land lease. Bridge tolls, bed tax, and sales tax is paid to the county. Approximately 60% of the area known as Pensacola Beach managed by the Santa Rosa Island Authority is considered to be public access, this is not including the National Seashores. This is a fact that Pensacola can boast, unlike many other coastlines in Florida and across the country. If the reinterpretation of land lease contracts is permitted, all of those who enjoy Pensacola Beach as we know it may be affected. It seemingly opens the door to changes that many residents and non-residents of Pensacola Beach may not be fully aware of. For more information on the Island Authority visit SRIA-FLA.com

Pensacola East Hill Real Estate

The big question...Are we at the bottom of the market? Of course nobody knows where the bottom is until it starts going back up. What we do know is that in our local market, our prices have dropped from 20% inflated from the end of last summer to about 7% currently. 5% is typically found to be negotiable from asking price to sale price. Mortgages are no problem to obtain if one has decent credit, and a 5-10% down payment (the way it use to be prior to loose mortgage practices). We are battling the uncertainty of an election year, and public impression of the market with the correction of problems in the banking industry. The uncertainty of a market contributes to the conditions of a buyers' market. When the market becomes more stable, prices will once again stabilize, eventually increase, and the tide will turn. If one looks at the numbers, it is a buyers' market with huge inventory to choose from, and deals to be had. One only needs a good Realtor who is willing to work to find them.

Pensacola East Hill Real Estate

Here are the facts. Residential property sales in our greater Pensacola area are at the same levels as the 2000/2001 market. The graph shows our most recent upward trend with the peak of the market in the fall of 2004 and the progressing cycle downward ever since. We have now reach the bottom of our bell curve. If history repeats itself, as it typically does, we should find 2008 to be the leveling year in our Pensacola real estate market. Only time will tell. The graph illustrates Residential Monthly Listing Sales from 1999-2008.

Numbers gathered from the Pensacola Association of Realtors monthly sales figures.