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!

Aug. 24, 2020

NAR: July Existing-Home Sales Soar 24.7% Higher

Pensacola Beach Florida

“The housing market is well past the recovery phase and now booming,” says NAR. And current owners seeking larger homes will “drive demand even into 2021.”

WASHINGTON – National existing-home sales continued a strong, upward trajectory in July, marking two consecutive months of significant sales gains, according to the National Association of Realtors® (NAR). Each of the four major U.S. regions attained double-digit, month-over-month increases, and the Northeast was the only region to show a year-over-year decline.

Total existing-home sales – completed transactions that include single-family homes, townhomes, condominiums and co-ops – jumped 24.7% from June to a seasonally-adjusted annual rate of 5.86 million in July – a record high. The previous record monthly increase in sales was 20.7% in June of this year.

But sales increased year-to-year as well as month-to-month, with overall sales volume up 8.7% compared to July 2019 (5.39 million).

“The housing market is well past the recovery phase and now booming with higher home sales compared to the pre-pandemic days,” says Lawrence Yun, NAR’s chief economist. “With the sizable shift in remote work, current homeowners are looking for larger homes, and this will lead to a secondary level of demand even into 2021.”

The median U.S. existing-home price for all housing types in July was $304,100, up 8.5% from July 2019 ($280,400), with prices rising in every region. July’s national price increase marks 101 straight months of year-over-year gains, and – for the first time ever – the national median existing home price rose above the $300,000 level.

Total housing inventory at the end of July totaled 1.50 million units, down from both 2.6% in June and 21.1% from one year ago (1.90 million). Unsold inventory is at a 3.1-month supply at the current sales pace, down from 3.9 months in June and down from the 4.2-month figure recorded in July 2019. Economists generally consider a 6-month supply of listings to be a balanced market between buyers and sellers, with anything below six months a sellers’ market.

Yun says dire inventory totals have a substantial effect on sales.

“The number of new listings is increasing, but they are quickly taken out of the market from heavy buyer competition,” he says. “More homes need to be built.”

Properties typically remained on the market for 22 days in July, seasonally down from 24 days in June and 29 days in July 2019 – 68% of homes sold in July were on the market for less than a month.

First-time buyers were responsible for 34% of sales in July, down from 35% in June and up from 32% in July 2019.

Individual investors or second-home buyers, who account for many cash sales, purchased 15% of homes in July, up from both 9% in June and 11% in July 2019. All-cash sales accounted for 16% of transactions in July, equal to the percentage in June and down from 19% in July 2019.

Distressed sales – foreclosures and short sales – represented less than 1% of sales in July, down from 3% in June up from 2% in June 2019.

“Homebuyers’ eagerness to secure housing has helped rejuvenate our nation’s economy despite incredibly difficult circumstances,” says NAR President Vince Malta. “Admittedly, we have a way to go toward full recovery, but I have faith in our communities, the real estate industry and NAR’s 1.4 million members, and I know collectively we will continue to mount an impressive recovery.”

According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 3.02% in July, down from 3.16% in June. The average commitment rate across all of 2019 was 3.94%.

Single-family and condo/co-op sales: Single-family home sales were at a seasonally-adjusted annual rate of 5.28 million in July, up 23.9% from 4.26 million in June and 9.8% from one year ago. The median existing single-family home price was $307,800 in July, up 8.5% year-to-year.

Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 580,000 units in July, up 31.8% from June and equal to a year ago. The median existing condo price was $270,100 in July, an increase of 6.4% from a year ago.

“Luxury homes in the suburbs are attracting buyers after having lagged the broader market for the past couple of years,” Yun says. “Single-family homes are continuing to outperform condominium units, suggesting a preference shift for a larger home, including an extra room for a home office.”

Regional breakdown: For the second consecutive month, sales for July increased in every region and median home prices grew in each of the four major regions year-to-year.

July existing-home sales in the Northeast rocketed 30.6% higher with an annual rate of 640,000. The median price in the Northeast was $317,800, up 4.0% from July 2019.

Existing-home sales jumped 27.5% in the Midwest to an annual rate of 1,390,000 in July, up 10.3% year-to-year. The median price in the Midwest was $244,500, an 8.0% increase from July 2019.

Existing-home sales in the South shot up 19.4% to an annual rate of 2.59 million in July, a 12.6% increase from the same time one year ago. The median price in the South was $268,500, a 9.9% year-to-year increase.

Existing-home sales in the West ascended 30.5% to an annual rate of 1,240,000 in July, a 7.8% increase from a year ago. The median price in the West was $453,800, up 11.3% year-to-year.

By Kerry Smith

© 2020 Florida Realtors®

Posted in Market Updates
July 29, 2020

Fla.’s Housing Market Shows June Upswing Despite COVID-19

Pensacola Beach Florida

By Marla Martin, Florida Realtors

Florida Realtors’ data: More new pending sales, more pending inventory and higher median sales prices year-over-year in June. Single-family closed sales rose 1.3% – 1st increase since March and a significant change compared to April and May, says Chief Economist O’Connor.

ORLANDO, Fla. – Florida’s housing market in June showed positive signs of recovery despite the continuing coronavirus pandemic, with more new pending sales, more pending inventory and higher median sales prices compared to a year ago, according to Florida Realtors® latest housing data. Single-family existing homes sales increased year-over-year, up by 1.3% – the first increase since March and a significant change compared to April and May, according to Florida Realtors Chief Economist Dr. Brad O’Connor

“Thanks to this nice recovery in June, plus the unusually strong sales growth we had ahead of the pandemic in January and February, here at the mid-point of 2020, closings are only down a little over 7% for the year compared to the first half of 2019,” he noted.

The June market data shows the resilience of Florida’s residents, economy and real estate sector, according to 2020 Florida Realtors President Barry Grooms, a Realtor and co-owner of Florida Suncoast Real Estate Inc. in Bradenton.

“Over the past few months, our homes have become more important than ever,” Grooms said. “Many buyers and sellers understandably hit the pause button in recent months due to the coronavirus, but record-low interest rates now are helping to fuel pent-up demand.

“As families have been navigating the challenges of working remotely, online classes and other daily activities all together under the same roof, many buyers are considering new must-haves when it comes to their homes. And Realtors in every community can help, with advice and knowledge on local market conditions.”

Last month’s closed sales of single-family homes statewide rose 1.3% year-over-year, totaling 27,650, while condo-townhouse sales decreased 10.9%, for a total of 8,996. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

In June, the statewide median sales prices for both single-family homes and condo-townhouse properties rose year-over-year for 102 consecutive months. The statewide median sales price for single-family existing homes was $282,000, up 4.4% from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last month’s statewide median price for condo-townhouse units was $210,000, up 7.7% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.

New pending sales continued to trend upwards for a second month, according to Chief Economist O’Connor. “If we assume new pending sales trends will continue to provide reliable forecasts of closings in the months to come, then based on the latest numbers from June, we can expect a very good summer. Statewide new pending sales of single-family homes were up 23.2% year-over-year,” he said. “Meanwhile, new pending sales of condo-townhouse units rose 19.8% compared to June 2019.

“Several factors are playing into this renewed demand for housing, but by far, the most important factors are record-low mortgage interest rates and the release of all the pent-up demand from our derailed spring buying season. We can’t expect this supercharged level of sales growth to last forever; at some point, we will burn through this pent-up demand. But interest rates are not expected to rise any time soon and they still have some room to go lower, so we have every reason to be optimistic about sales over the coming months, barring additional negative shocks to the economy.”

On the supply side of the market, inventory remains scarce and is an area of concern, particularly in the single-family existing home category, which was at a restricted 2.8 months’ supply in June, O’Connor noted. Condo-townhome inventory (active listings) was at a 5.7-months’ supply.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.16% in June 2020, down from the 3.80% averaged during the same month a year earlier.

© 2020 Florida Realtors®

Posted in Market Updates
July 9, 2020

Real Estate Update from Chris Reid Realtor July 2020

PENSACOLA BEACH FLORIDA

This month’s newsletter shares an article that sums up where we are in our current real estate market, our market stats and my favorite properties on the market. Enjoy!

CLICK HERE TO CHECK OUT THIS MONTH'S NEWSLETTER

EAST HILL | NORTH HILL | DOWNTOWN | THE BEACH

Posted in Market Updates
July 1, 2020

The Big Question: What Will Happen to the Housing Market?

Pensacola Beach FL

CHICAGO – The housing market is recovering much faster than most other sectors in the economy in the current recession. But will it last?

Unemployment remains high – at around 13% – and economic forecasters predict unemployment likely will remain elevated for the remainder of the year. However, economists believe housing will be able to weather most of the economic storm.

The current housing shortage and homeowners’ strong equity positions will likely rescue real estate from any downturn that would be similar in scope to the 2008 financial crisis, economists said during the “Economic Outlook and Housing Trends” webinar Wednesday, hosted by Freddie Mac and the Down Payment Resource.

“Real estate demand has staged a remarkable comeback, and given the chronic supply shortage, the rebound in demand should provide support to home prices,” said Sam Khater, Freddie Mac’s chief economist.

So far, data suggests the economy hit its low point during the first two weeks in April and has been steadily improving since. Still, the economy is significantly below its pre-March levels when the COVID-19 outbreak took hold in the U.S. While real estate demand declined at similar rates to the broader economy, the housing market is making a much more pronounced recovery than most other segments of the economy, Khater said.

This isn’t the 2008 crisis

“The housing market has held up much better than expected,” Laurie Goodman, co-director of the Housing Finance Policy Center at Urban Institute, said during the webinar. “Homeowners have been much less affected by COVID-19 than renters.”

A big reason for that is because the housing market has been underbuilding and unable to keep up with population demand since 2009, Goodman said. The country is undersupplied by an estimated 2.5 million housing units. “The supply-and-demand imbalance is continuing to put upward pressure on home prices and is causing them to rise,” Goodman added.

Further, owners have accumulated a great deal of equity in their homes over the last decade – and still-rising home prices are only adding to that. “This has given the housing market a resiliency that it didn’t have back in the 2008 financial crisis,” Goodman said.

Deferred sales unleashed, but for how long?

In recent weeks, mortgage applications for home purchases have posted a strong rebound, even surpassing levels well beyond what they were a year ago. Record low mortgage rates are enticing buyers who had been waiting on the sidelines prior to the pandemic to make a move as well as motivating renters, Khater said.

“It’s remarkable that in the last recession it took us 10 years to reach normal levels” again with purchase mortgage applications, Khater said. “In this recession, it took us less than 10 weeks.”

However, Khater cautioned that mortgage applications for home purchases will likely moderate after this current “bulge in deferred sales” subsides.

“The economic recovery is underway, but uncertainty is very high,” Khater said. Federal stimulus programs will expire in the coming weeks. “Stimulus is flowing through and sustaining consumer spending and balance sheets for now, but there is concern that a fiscal cliff is just around the corner and may put the brake on recovery,” he said.

Here are some additional housing indicators highlighted at Wednesday’s webinar:

  • Home prices stand firm. Home prices are rising, but growth is expected to moderate over this year and next. However, economists are not predicting any declines in home prices.

    The National Association of Realtors® projects home prices to rise about 4% in 2020 and 2021; CoreLogic and Freddie Mac’s forecasts are more subdued but still have home prices rising at about 2.5% in 2020 and 2021. So far, home prices have not gone down during the pandemic and actually have increased.

    “This really speaks to the lack of inventory on the market,” Khater said. “It’s still a seller’s market – even in the worst recession since World War II.”
  • Personal income is rising. Despite surging unemployment numbers, incomes are rising. Personal income increased to a record $2 trillion in April – but that rise was entirely driven by the economic stimulus from the federal government, Khater said.

    “Money is flowing into the economy and supporting customers, but in July there could be a fiscal cliff,” Khater says. “The concern is that that the stimulus supported consumer spending, but that could go down again when it expires.”
  • Foreclosure wave unlikely. Khater does not anticipate a large uptick in foreclosures in 2020 or 2021. “Homeowners have record equity, home prices continue to rise, and there’s federal forbearance support,” Khater said. “Homeowners – at least so far – seem to be much less impacted by the recession.”
  • Some populations are being hit harder than others. Khater pointed to data that showed Hispanics and Asian populations in the U.S. have seen the largest declines in employment during the current recession – and four times larger than the last recession. “There are longer-term concerns around the recession’s impact on inequality,” Khater said.

© 2020 Florida Realtors®

Posted in Market Updates
June 5, 2020

This month's real estate newsletter

Pensacola Beach Florida

This month’s newsletter features a rare condo opportunity in East Hill coming soon, the monthly real estate market stats in our area for April and a Covid-19 reopening update for FL

 

Your resource for navigating the real estate market in the greater Pensacola area.

PENSACOLA | EAST HILL | DOWNTOWN | THE BEACH

Click here to see this month's real estate newsletter

Posted in Market Updates
June 5, 2020

Fla. Moves a Step Closer to ‘Normal’ Under Phase 2 Reopening

JUNE 3, 2020 By kerry smith

Gov. DeSantis announced that Phase 2 of the state’s 3-step reopening plan will go into effect on Friday morning. It doesn’t change real estate services that were already deemed essential, but it could give hope to some buyers and sellers who pulled back during the pandemic.

 

ORLANDO, Fla. – Florida Gov. Ron DeSantis announced that Phase 2 of the state’s 3-step reopening plan will go into effect on Friday morning through Executive Order 20-139.

While none of the actions contained in this executive order impact Florida Realtors members directly, they do represent a shift towards normalcy in our communities, and will hopefully spark more real estate activity as people emerge from their homes and begin to consider the future. It doesn’t change real estate services that were already deemed essential, but it should give hope to some buyers and sellers who pulled back during the pandemic.

The changes don’t apply to the South Florida counties of Miami-Dade, Broward and Palm Beach, but the order allows some businesses in the counties to reopen “after each county seeks approval with a written request from the County Mayor or if no mayor the County Administrator.”

Under the executive order, bars, movie theaters, bowling alleys and concert halls are allowed to reopen. Most have some type of maximum occupancy requirements, along with general instructions to “maintain social distancing and sanitation protocols."

In announcing the onset of Phase 2, DeSantis also warned that COVID-19 still remains a threat, and that “the virus isn’t gone.”

© 2020 Florida Realtors®

Posted in Market Updates
May 27, 2020

Real Estate Update from Chris Reid Realtor

Pensacola Beach Florida

Here's the latest on where we are with the real estate market these days. As always, feel free to give me a jingle to discuss the goings on:

Consumer Confidence Bouncing Back after Pandemic Low

Things are getting better, at least in consumers’ minds. The May confidence index rose to 86.7 from April’s 85.7, and while the component for current conditions fell 1.9 points, future expectations rose 2.6 points. According to the report, the “free fall stopped in May.” Read more

New-Home Sales Post Surprising Gain in April

A 0.6% increase in new-home sales isn’t much, but it suggests that a healthy number of potential buyers is still ready to move forward on their plan to buy a home. Read more

Fla. Approves 63% of Counties for Vacation Rentals

As of Tuesday morning, Fla. DBPR approved plans for 42 counties to safely reopen vacation-rental properties – an increase from 26 counties last Friday. Read more  

Additional local information can be found at myescambia.com and the Short Term Vacation Rental Plan for Escambia County.

Posted in Market Updates
April 30, 2020

Today's Real Estate News from Chris Reid Realtor 4/30/2020

Pensacola Beach Florida

Progress! Governor DeSantis released an executive order Wednesday evening to launch Phase 1 of the reopening of the State of Florida - Phase 1: Safe. Smart. Step-By-Step. Plan for Florida's Recovery.

Per the order, most of the state of FL can start reopening May 4th. Southern FL is excluded from reopening for the time being due to higher incidents of Covid-19 infections. The Governor's said approach is to take data driven steps to strategically open the state slowly and safely in line with the guidelines released from the White House this past week. Below are some highlights. Please refer to the Governor's official order for specifics and details:

•   Schools remain distance learning

•   Visits to senior living facilities are prohibited

•   Elective surgeries can resume

•   Restaurants may offer outdoor seating with 6 foot space between tables & indoor seating at 25%

•   Retail can operate at 25% of indoor capacity

•   Short-term vacation rentals prohibited until further notice. 

•   No changes for bars, gyms and personal services such as hair dressers and barbers.

•   Movie theaters remain closed

•   Vulnerable individuals should avoid close contact with people outside the home.

Phase 1 maintains Centers for Disease Control and Prevention recommendations to prevent the spread of COVID-19 - social distancing while in public, avoiding groups of 10 or more, using face masks in public when you can’t maintain 6 feet distance from others etc..

Click here for a link to the Governor's order.

As always, please let me know if there is anything i may do to assist you with all things real estate. Be safe and well.

Posted in Market Updates
April 27, 2020

An Inside View - Monthly Newsletter

Pensacola Beach

CLICK HERE FOR AN INSIDE VIEW - THIS MONTH’S REAL ESTATE NEWSLETTER

Your resource for navigating the real estate market. 

EAST HILL   DOWNTOWN   THE BEACH

Posted in Market Updates
April 21, 2020

Family Compound 5011 Muldoon Cir Pensacola

5011 Muldoon Cir Pensacola FL 32526

FAMILY COMPOUND 5011 MULDOON CIR., PENSACOLA, FL 32526

Family compound on private 3.24 acres within a 15 minute drive to downtown Pensacola. Huge lot in well established neighborhood so close to the downtown and shopping. This stately, well maintained, 2 owner home offers plenty of room for a growing family. This custom home is set back off of the road in a grove of oak trees. The 2 car garage with side entry is over-sized. There is a carport for boat or RV parking. There is a separate detached 1 car garage with separate heated and cooled space with another full bath (main square footage 3763 with 4 beds, 2 1/2 bath, guest house 375 with full bath). There are also three other out buildings. The possibilities are endless with this property!

Must see! CLICK HERE FOR DETAILS

Posted in Property For Sale