As the real estate market has largely normalized after the last decade's crash, home sales have increased. New construction has started again and prices on existing property are getting back to the levels before the boom, if not higher. Foreclosures are no longer the best way to get a deal, and are even rare in some places. So what should you do to get the most home for the money now?
When the bubble burst back in the mid 2000's, the first areas to be hit were outside of the major cities. During the growth spurt, builders ran out of places to build in Pensacola. So they had moved out of the cities, marching further and further away to build new subdivisions with high-medium to very high-priced homes with their own amenities. Golf course developments, communities near equine facilities, and finally just agricultural areas provided developers with space to build exceptional homes with community pools, clubhouses, and parks.
Buyers seemed to jump on the chance to own a home that was really more than they could afford, but the banks were handing out mortgage loans to anybody at the time...so many took the leap and the chance to live large or buy at pre-construction prices and re-sell for even more.
When it all came to a grinding halt, the trouble began. Those who had previous homes for sale couldn't sell them. Speculators who bought above their means to flip and make quick and easy money were caught with property they couldn't flip and bank notes coming due. Jobs started to suffer, which made it even harder for the new buyers to make the higher house payments.
While there will always be a market for beach property or ritzy downtown condos, it is not so when it comes to communities that are 10 or 20 miles from the business office and commuting prices are even higher. These beautiful suburban neighborhoods often were the first to suffer from foreclosures and short sales. Home prices fell like bricks, and what was a coveted luxury property ended up as a reduced-price white elephant.
The first to fall has become of the first to recover, with prices lower and mortgage loans still manageable. Down payment percentages might be higher, but the price can be half of the original, so the requirements are still about the same. Rates are still extremely low, payments are more reasonable, and buying a home outside of the city or the beach is proving to be an easy way to have the home you've always wanted. Take a look at the communities of:
Gulf Breeze, Pace and West Pensacola. Also try looking a little further to the north in Beulah, and Northeast Pensacola you will more great deals.
During the boom, builders were swamped. Supply versus demand allowed builders to increase their prices while developers designed higher-end homes to cover the higher costs of building. New home prices got higher and higher, especially near the beach or inside the city limits. Existing home prices were high, but not in the price range of the new ones. When the crash came, many half-built subdivisions and homes were left unfinished, or developing plans had to be scrapped and left to wait for better times.
Well, better times are coming back, and new subdivisions are actively under construction. If you're in the market to choose your lot, choose your home style, choose your interiors, and live in a brand new house - this is the time to do it. We can direct you to new developments in the suburbs. You won't be plagued with replacing the roof or decaying wood, an old air conditioning system going out, or even replacing old appliances. Choose an inexpensive new subdivision or a lavish lifestyle community. Buying a new or resale home in the suburbs is now not only possible, but may possibly be the best investment you can make!
For more information about buying a home in or around the Pensacola area, browse around our website or give us a call. We're here to find the perfect home for you!
