Pensacola Area Real Estate Market Stats - HIGHLIGHTS

• August Sales are down from last month and down from last year with 796 units sold. Last month 854 units sold.
  Number of sales Y-O-Y was down 0.4%.
• Cash buyers represent 26% of all residential sales in our area, up from last month 24%.
• August average "days on market" is remains unchanged from June at 60 days to: 60 Days.
• Average sold price is $381,559, this is up from the prior month but down 5.5% from August 2023 Y-O-Y, $403,965.
• August inventory is up month over month to: 3340 units, and up significantly from August 2023, with 2026 units. Y-O-Y increase in inventory of 55%!
• Months inventory is 4.2 months, up from July 3.8 months, and up from and up from August 2023 with 2.7 months inventory.
• Average List to sold price difference in August was -2.8% up from -2.5 % in July.
• The inventory of homes remains low with 4.2 months inventory, this level is considered a weak seller's market. Generally when Months Inventory is generally less than 4.0 months it is considered a seller’s market.6.0 months or more is a buyer's market. Between 4 and 6 months inventory is a neutral market.

Over the last few months, I have been keeping you abreast of a shift in how we are conducting real estate business that is happening - it is a philosophical change in real estate. You may have heard recently in the news, the National Association of Realtors® (NAR) has announced that under a recent Settlement Agreement with the Department of Justice (DOJ), new MLS rules will be enacted on the 17^th of August 2024, the transition is already going into effect. What does this mean to you?

It is now necessary for all Buyer’s agents nationwide to have a signed Buyer Broker Representation Agreement addressing services and fees prior to showing homebuyers properties. This requirement is a change from how things have been done historically – the purpose is to give the consumer more clarity and control over the commission process. The biggest misconception out there is that Sellers were required to pay Buyer Broker compensation - it has always been negotiable. The goal for this new way of doing things is simply to conduct business in a more transparent way for consumers, which is always a good thing.

Options for Buyer Broker compensation:

•       Most Sellers understand the importance of a Buyer’s representation in a transaction and offer Buyer Broker compensation for the Buyer’s representation

•       Some Sellers may offer partial compensation or a concession toward the Buyer’s closing costs that can offset the Buyer’s cost of compensation

•       Some Sellers may expect the Buyer to pay for their own representation in full. This is an uncommon situation, as most Sellers offer Buyer Broker compensation, but it may occur. In this instance the property should be priced accordingly as real estate compensation is usually factored into a sale price.

•       Every effort will be made to obtain compensation from the listing side. In the event the Buyer’s Broker compensation is not made whole by the Seller, payment is to be made at closing per the terms of the negotiated brokerage agreement by the Buyer.

Prior to every showing, you will be aware of your potential financial obligation to cover part or all the buyer’s brokerage compensation with each property you would like to be shown. We will be able to discuss how to negotiate it into the transaction. Again, this is about full transparency.

I will provide our most current FL Association of Realtor’s Buyer Brokerage Agreement for your review and our discussion as things progress. I am happy to answer any questions or concerns you may have.

As a real estate professional for the last 17+ years, it is my job to assist Buyers and Sellers with our ever-changing real estate market - to help navigate the challenging tasks of contract negotiations, conducting proper inspections, financing, and insurance needs, to make solid investments now and for the future. Experience matters.

I would very much like to apply for the job of being your REALTOR. What questions do you have about what I do and how I get paid? I look forward to the opportunity of working with you and helping you purchase the right home for you and your family.

Kind regards,

Chris Reid, Realtor

Well before I got into real estate, when my husband and I lived up in Maine and I was teaching at a private academy, I was told by our family Realtor that I should become a Realtor. My response was not only “NO”, but “Hell NO”. The agent’s head knocked back by my response. I could not picture doing it and was honestly more than happy to pay a real estate commission to a Realtor to handle the stress and details of one of the biggest financial transactions my family would ever have. At the time, we were selling a home that I designed and we had custom built to cash out and move to Pensacola to start a new life. We had plans to take the money from the sale of our property to start a new business in downtown Pensacola. It was not long after we moved to Pensacola that we knew our timing was off and downtown did not have the foot traffic at the time to support our dream. This was in 2007, need I say more. Our business plan saved our hides. Thankfully, we listened to our brains and not just our hearts. Then the big question was… What do we do now? We literally only knew half a dozen people in Pensacola. We had no jobs, no income and now no plan. We tried not to panic. One morning I woke up, grabbed a cup of coffee, and sat out on the deck in the Florida sun contemplating our future. It came to me. We would become Realtors! It combined many of the skills that I had gathered to that point in my life - from my background in customer service, management, communications, and marketing, to architectural design and construction. I saw a circle come together in my mind.  The only way Rob and I had ever saved a nickel was through buying and selling real estate. I could help other people do the same! It was a no brainer. But wait a minute… I had not only said, “NO” but, “Hell NO” to the idea. At this point, I reflected on the bad real estate experiences I personally had and thought about what I would do differently. I decided I would reinvent what a Realtor was in my mind, and would be the Realtor that I thought one should be. By working hard and taking pride in a job well done, treating every transaction as if it were my own, treating people as I wanted to be treated, I slowly built my business. I built a business I could be proud of with a loyal customer base and a focus on the historic downtown Pensacola neighborhoods and waterfront properties I was passionate about.

We came from Maine… there are really old houses up there. The first house we ever bought in Maine was 169 years old at the time. We also had a house that was built in 1774! There was one thing I knew well and that was old houses. I considered my East Hill Craftsman to be my “new” old house since it was only 90 years old when we bought it. It is all relative.

I also gravitated to waterfront properties. I am a water girl – an avid fisherman, surfer, and nature lover. I was even a lifeguard back in the day. I wanted to be around the waterfront lifestyle that drew me to Pensacola in the first place. When you see Pensacola from the Bay it is quite apparent that Pensacola is all about the water. You can only imagine how the first settlers saw it coming into its safe harbor in 1559.

But I digress. Why am I telling you all of this? When you sell or buy a home it is a massive financial decision in your family’s life. These are decisions that can affect generational wealth. In an industry that is rife with pitfalls, you should know the Realtor you hire. Realtors do much more than just open doors. I can share a list of over 100 obstacles I overcome in any given transaction. A good Realtor has your back.

Some Realtors have teams. I choose to be a one woman show. I put 100% focus into every aspect of my clients’ transactions. I have surrounded myself with a fantastic network of inspectors, lenders, insurance providers, title agents etc. for support I (we) can rely on. Working from contract to closing, my people work with me and me only. They are not passed to a transaction coordinator. I know every detail of a transaction from start to finish which allows me to give thoughtful skill, care, and diligence to the people I work with. In doing so, I better understand a client’s needs and goals at a level that makes a smoother, more effective, positive, and successful process. I choose to work this way - to focus on quality not quantity.

I welcome you to read the testimonials from some of the people I have worked with and welcome the opportunity to talk with you. Click to Open Biography and Testimonials

Sincerely,

Chris Reid, Realtor

• Cash buyers represent 24% of all residential sales in our area, same last month 24%
• June average "day on market" is up from May at 53 days to: 60 Days.
• Average sold price is $383,996, this is down from the prior month and from down 7.9% June 2023 Y-O-Y, $416,806.

• June inventory is up slightly month over month to: 3212 units, up significantly from June 2023, with 1916 units. Y-O-Y increase in inventory of 68%!

• Months inventory is 3.9 months, up from May 3.6 months, and up from June 2023 with 1.9 months inventory.
• Average List to sold price difference in June was -2.3% down from -2.8 % in May.
• The inventory of homes remains low with 3.9 months inventory, this level is considered a weak seller's market. When Months Inventory is generally less than 4.0 months it is considered a seller’s market.6.0 months or more is a buyer's market. Between 4 and 6 months inventory is a neutral market.

Are you aspiring to own a home but worried about the initial affordability? Or, are you having difficulty selling a property and want to offer a homebuyer incentive? A Temporary Rate Buydown could be an option for both scenarios.

A Temporary Rate Buydown is a financial strategy where the borrower, can secure a lower interest rate during the early years of a mortgage loan with the Seller’s financial assistance at closing.

Here are ways this could be a gateway to easy homeownership or to help in selling your property:

• Lower Initial Payments: With the temporary rate buydown, a homebuyer can enjoy reduced mortgage payments at the beginning of the loan term. It is an excellent option if the Buyer expects their income to rise in the future, with a sale of an existing property for example, or if they plan to refinance or pay off the loan within a few years.
• Increased Buying Power: A lower initial payment means a Buyer might qualify for a larger loan amount increasing their options.
• Flexible Financial Planning: A temporary rate buydown can offer flexibility in managing one’s finances; providing a cushion while adjusting to new monthly mortgage payments.
• Potential for Savings:  If interest rates increase in the future, a Buyer may have already locked in at a lower rate, leading to potential interest savings in the long run.

A temporary rate buydown may not be a suitable loan product for everyone. It is important to understand terms and conditions before going ahead with any mortgage product. It is likewise important for a home seller to understand what they are offering to a potential buyer for a concession at closing. Let's discuss the possibilities. If you are buying a home, I can put you in touch with an expert mortgage broker who specializes in various loan products to see if it could be the right fit for you and your family's needs. If you are selling, we can review how exactly this product works and the incentive you could offer. No two home buying or selling situations are alike. It pays to work with an expert real estate agent who can navigate this real estate market and help get you to where you want to go. 

The week following Independence Day, Dubbed “Red, White, and Blues Week”, the Santa Rosa Island Authority hosts the Pensacola Beach Airshow Featuring the U.S. Navy Blue Angels.

RED, WHITE AND BLUES WEEK  -

THE PENSACOLA BEACH AIR SHOW

July10th-13th, 2024

Pensacola List vs. Sold Real Estate Prices for May

The monthly May PAR stats are now available:

HIGHLIGHTS

• May sales are up from last month but down from last year with 881 units sold. Last month 822 units sold. Number of sales Y-O-Y was Down 5.8%.
• Cash buyers represent 24% of all residential sales in our area. This is down from 25% last Month.
• May average "day on market" is Down from April at 63 days to: 53 Days.
• Average sold price is $394,787, this is Down from the prior month and from up 3.3% May 2023 Y-O-Y, $382,016.
• May inventory is up month over month to: 3205 units, up significantly from May 2023, with 176 units. Y-O-Y increase in inventory of 81%!
• Months inventory is 3.6 months, down from April 3.7 months, but up from May 2023 with 1.9 months inventory.
• Average List to sold price difference in May was -2.8% unchanged from -2.8 % in April.
• The inventory of homes remains low with 3.6 months inventory, this level is considered a weak seller's market. When Months Inventory is generally less than 4.0 months it is considered a seller’s market.6.0 months or more is a buyer's market. Between 4 and 6 months inventory is a neutral market.