Pensacola Area Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

July 17, 2019

Buyers Waiting for List Prices to Drop? They’ll Be Disappointed

Buyers Waiting for List Prices to Drop

By Natalie Campisi, Capital Gazette Newspapers

Home prices plummeted during the recession, and some buyers are waiting for it to happen again. But investors who dream of easy money – sure they can make even more by flipping – aren’t driving the current market. 

WASHINGTON – Homebuyers sitting on the sidelines waiting for housing prices to backslide might be waiting longer than expected, according to experts. Although the high price of housing in many parts of the country seems to signal a possible bubble, the usual signs – like oversupply, an uptick in investors and loose credit standards – are not there.

The strong demand for housing coupled with a supply shortage is spurring home-price growth rather than speculative buying. A speculative buyer purchases a home with the intention of selling for profit, which played a role in the housing crisis, says Michael Neal, a senior research associate at the Urban Institute.

This is a good thing for people who are worried that home values are going to nosedive. An Urban Institute analysis of recent housing price index data from Black Knight concluded that today’s housing demand is primarily coming from people who plan to live in the home, not real estate investors.

“The investment piece of the (index) is shrinking quite dramatically,” Neal says. “It explains why house-price growth has slowed. It stands in contrast to the housing boom when investors were driving up home-price appreciation.

“You see the same thing when you look out West – that investment piece has declined, as well. It’s actually slightly negative, so it’s detracting from housing prices.”

Supply not keeping up with demand

The supply shortage also gives cover to home values, as there are still more buyers than homes on the market. And that naturally drives up prices.

Despite housing starts of new homes rising in April, there continues to be a shortage of single-family units, says Joel Kan, associate vice president for industry surveys and forecasts with the Mortgage Bankers Association.

“On an annual basis, we’re about 300,000 to 330,000 units short,” Kan says. “If you think about the early 2000s and through the crisis, we had price appreciation that outpaced income growth. And we had overbuilding in many markets. When there was a price correction, there was still inventory and demand lessened; that’s the perfect storm,” Kan says.

Today’s market is very different, though. Builders are mostly focusing on the high-end market, leaving entry-level homebuyers with limited options.

Consider that 15 years ago, nearly 55% of new homes were priced under $200,000, but today that number has dropped to almost 13%, according to a recent report from the Urban Land Institute. Similarly, homes priced under $400,000 have slid from 91% 15 years ago to just 67% of new-home sales today.

Although cooling home prices and waning bidding wars are a welcome reprieve from last year’s housing frenzy, entry-level buyers still face a market with limited options. That means home prices aren’t likely to stop growing anytime soon. Couple this with a tighter credit market and stricter borrowing guidelines, and the looming threat of a housing bubble is unlikely.

“We could loosen lending standards and still be within very reasonable 2001 to 2003 levels,” Neal says.

Tighter lending standards and a robust economy

Unlike the lead-up to the housing crisis when subprime loans were being made to many borrowers who didn’t have the ability to repay, the landscape has tightened considerably in recent years through stricter federal lending regulations. As a result, fewer homeowners are defaulting on their loans today. Foreclosure rates sunk to the lowest level in March for any month in the past 20 years, according to data from CoreLogic.

Qualified mortgage, or QM, standards put into place by the Consumer Financial Protection Bureau, or CFPB, mitigate risk from once-dicey mortgage products like adjustable-rate mortgages, or ARMs. The CFPB put caps on the variable interest rates on ARM products after they reset so that borrowers’ payments can’t jump too high over a short period of time.

While there might be more pronounced fluctuations in certain metro areas, a nationwide housing bubble is doubtful, Kan says. Today’s housing demand is fueled by a strong economy, low unemployment and solid household formation. The sustained growth in housing might even be more impressive if the supply were greater but, instead, home prices have grown.

“Housing is still getting tailwinds from low rates and the strong economy,” Kan says. “We’ve already seen home prices start to break, but they’re still going up, just at a slower pace.”

As of March, U.S. home-price growth has fallen for the past 12 months and is now at its lowest level since September 2012, according to the latest S&P CoreLogic Case-Shiller’s national home price index. Despite the cooling market, Kan predicts home-price growth to continue into 2020, easing fears that today’s homebuyers will lose money next year.

“Our expectation is for prices to grow between 3% and 4%. So even if someone were to buy now, generally, we’re going to see some home-price growth next year,” Kan says.

Buying a house now can help you later

Although it can be a challenge to find affordable housing, there are still good reasons for homeownership, Neal says. First, homeowners get the benefit of having a consistent housing bill each month for the life of their mortgage. And the longer homebuyers stay in their house, the more money they’ll likely save in rising rent down the road.

A stable housing payment with a fixed-rate mortgage can shelter you from the inflation that renters have to pay, something called shelter-cost inflation. Average rents have grown about 1% over the past two months, the fastest pace of growth in nearly two years, according to data from Apartment List’s National Rent Report. Over time, those increases add up for renters.

Today’s homebuyers also benefit from low mortgage rates, which help keep loan costs down. However, not all areas are better for buyers, Kan says. In fact, it’s cheaper to rent, on a monthly basis, than it is to buy a home in nearly 60% of the nation’s major metro areas. There are a few markets where the opposite is true like Detroit, Cleveland and Philadelphia, but those areas are the exception to the rule.

©Florida Realtors®, Copyright© 2019 Capital Gazette Newspapers, Natalie Campisi

Posted in Market Updates
June 5, 2019

Going Coastal with Chris Reid Realtor

Click here to check out my monthly newsletter - Going Coastal with Chris Reid Realtor

Pensacola Beach, FL

Posted in Market Updates
June 5, 2019




Welcome Home to this open concept brick ranch on ample private lot in the highly desirable Blue Heron Cove Subdivision within Villa Venyce in Gulf Breeze. A family oriented neighborhood in the Gulf Breeze school district complete with its own park/playground where the voluntary HOA hosts special picnics & events a few times a year. Side entry 2 car garage as you pull in with plenty of driveway parking which extends behind the privacy fence with space for an RV. Enter into the formal foyer which opens to the tiled living room with vaulted ceilings, wood burning fireplace, built-in cabinets/shelves, Solatube skylight & niche. The living room opens to a sunroom with 12' tongue & groove ceiling, impact resistant skylight & crown molding - overlooks the lush shaded backyard with 20x16' deck. Off the sunroom is a den/office or fourth bedroom. Also off the sunroom and living room is the open kitchen with spacious dining area. Eat in kitchen with breakfast bar overlooks the backyard. Great space for entertaining and keeping an eye on the kids. Plenty of storage and counter space, stainless appliances. Large laundry with more storage off of the kitchen. The master bedroom accommodates the largest of furniture with plenty of room for a sitting area. The ample en suite bath with 6’ jetted Kohler Jacuzzi tub with in-line heater, skylight and separate marble tiled/glass shower is a nice retreat. Walk in closet & nicely appointed double vanity with granite counter. The two guestrooms are serviced by another full bath off of the hall which doubles as the guest bath. Neutral colors, wide baseboard moldings throughout the house. Tankless on demand gas hot water heater, architectural shingled roof replaced in 2019. Low E window tinting for energy efficiency. Radio monitored alarm system by Smith Security (no phone required). American Standard 4Ton variable speed a/c with New ducting. Rebuild NW FL wind retrofit. Full home hurricane shutters. Too many features to list! Must See!!!!

Posted in Property For Sale
April 11, 2019

904 Corto Dr., Pensacola Beach FL

904 Corto Dr., Pensacola Beach, FL

Click Here for property details on 904 Corto Dr., Pensacola Beach, FL

QUIET LOCATION WITHIN VIEW OF THE WATER. This is a fantastic Pensacola Beach location - 130 steps from your doorstep to the water. Only two houses away from public beach access to the Intracoastal Waterway/sound and a block away from the coveted locals baby beach. This 3 bedroom 2 bath split floor plan with updated kitchen and bath is a quiet beach retreat, perfect for those looking for a year round residence, second home or rental investment property.


Posted in Property For Sale
March 28, 2019

813 E La Rua St Old East Hill FOR SALE

813 E La Rua St Old East Hill Pensacola

Click here for listing details: 813 E La Rua St Old East Hill 

This Beautifully Maintained Old East Hill Preservation District Gulf Coast Cottage dating back to 1906 sits prominently on one of the last remaining exposed brick streets in downtown Pensacola. Layout and quality reminiscent of years past. A perfect property for those looking for the charm and character, quirks and appeal of old world living. A BONUS - INVESTORS ALERT! PROPERTY HAS GROSSED $24,000 IN CURRENT YEARS! Close proximity to all things downtown Pensacola.

Posted in Property For Sale
March 28, 2019

The Residences at 1225 E Blount St unit 3 FOR SALE

The Residences at 1225 E Blount St

This unique & extremely well maintained four unit condo in the heart of East Hill offers an opportunity to live in affordable style. This property is turn key and ready for easy living. The property is perfect for someone looking for an intown or second home, a true Piedaterre. MLS 549668 $244,900 2B/1B 1240 square feet Click here for details


Posted in Property For Sale
Dec. 18, 2018

New East Hill, Pensacola, and Beaches Website

Pensacola Beach and Downtown real estate news

I am happy to be launching my new Pensacola real estate website for East Hill, Downtown and the Beach! Please take a look and let me know what you think!

The new site offers better tools for those looking to conduct their own real estate search, and allows you to save your favorite listings. This is a "real-time" search engine giving you the most up to date listings in the greater Pensacola area. I think you will find it to be very user friendly. Log into my website at

You can also receive market updates for condos or neighborhoods as often as you would like. Simply log in with your email and phone number to get started.

I hope you like what the new site has to offer. Feedback is always appreciated! Best, Chris


Chris Reid, REALTOR

Emerald Coast Realty


Posted in Market Updates