It is hard to believe that it has been ten years since the crest of the housing bubble. Property sales peaked here on the Gulf Coast in 2004 while other markets trended behind us until early 2006.
Nationally not one metro area escaped the fall in sales and the inevitable subsequent bust.
Real estate sales in the greater Pensacola area have been steadily improving since 2008. In 2013 things really kicked in to gear, and we anticipate that trend to continue to build in 2014. You can see from the chart below 2013 was the strongest year since 2006 as many people have been taking advantage of low prices and affordable interest rates.
These residential sales numbers represent all homes, condos and townhomes that have sold in Escambia county and Santa Rosa county, Florida since January 1999.
2013 sales increased almost 14% compared to 2012 sales in spite of tighter lending practices and higher interest rates. So why are we seeing sales accelerate? Perhaps this is because there is a lot of pent up demand, and buyers are feeling more confident that there are better times ahead.
2013 provided a broad base of buyers made up of primary home buyers, first time buyers, military relocation, retirees, investors, second home buyers, beach resort buyers and buyers looking to turn a profit. We saw an abundance of people investing towards long term wealth as well as those looking for properties to flip.
Residential sales prices are up and are moving in a positive direction. The average price increase from 2013 to 2012 is up 4%, while the median price is up 5%. This appreciation has resulted in the number of upside down loans decrease dramatically, and this declining trend is continuing as property prices increase. More sellers and buyers are being attracted to the current real estate market since prices are rising and distressed properties are on the decline.
The outlook for 2014 is bright. The number of pending sales is up as well as buyer internet traffic of people looking for properties. The internet is where most people begin to look for a home.
For more market information, see the 2013 Market Snapshot by the Pensacola Association of Realtors and Pensacola Market Sales Trends or contact ERA Emerald Coast Realty.
