We have just past the halfway point of the year, which is an excellent time to evaluate real estate sales for the first half of 2017. Comparing the first six months sales numbers of 2017 for the general Pensacola Area* of previous years of residential (homes and condos) sales shows how well our market is doing.

While 2017 is shaping up to be a very good year, the number of properties sold in 2017 is only slightly greater 2016. This small increase is due in large measure due to the decrease in the number of properties for sale - our inventory is down by 14% from this time last year.  The reduction of local inventory impacts home buyers ability to find the house or condo for the right price.

Price Appreciation

The price you will pay to acquire a house or condominium this year has also increased over the last seven years. The average price paid for a residential property in the Greater Pensacola Area has increased by 12.5% during the past twelve months and has increased 39% since the bottom of the market in 2010.  This appreciation has been gradual and continued year after year as seen in the graph above.

Second-Half 2017 Forecast

The second-half of 2017 is expected to remain strong as the number of days on the market will shrink and the inventory of homes and condos continues to diminish. Interest rates are expected to remain low posing little to no risk to the real estate market. The factors above combine to produce a seller's market.

Given these strong real estate market conditions, buyers should prepare in anticipation of making a winning offer when the right property becomes available. Consider early on whether you will buy with cash or financing. If you plan to use financing, get pre-qualified and find any hidden credit issues that may exist before you make an offer.

Sellers are less likely to grant contingencies or concessions when multiple offers presented. Remember;  preparation pays off for buyers too.

*Pensacola Area - Refers to all cities and communities collectively in Santa Rosa and Escambia Counties.

I was at the bank drive thru last week when one of my favorite tellers shared her recent success with the Pensacola Little Theater. You are a bit late to catch her production, but there is still time to see PLT's Cats. Cats is a theater favorite and Broadway record holder. The full musical based on T.S. Elliott's poems will feature the best of our local dancers and character actors! Aug 4-6 is your last chance to catch this show, and seating is limited.

The Atlas Oyster House is calling all Millennials for their next installment of Atlas Beverage Classes (A.B.C.). This semester will focus on handcrafted beers with mini appetizers to complement each tasting. Classes will cover the basics as well as specific information regarding the history of the brewery/distillery and their beers or spirits. There are two classes every month, each an hour and a half long. Class cost is $20 per person (plus tax and gratuity), per class, which gets each participant one tasting of each of the featured beverages. Also, throughout there will be giving away T-shirts, beer glassware, gift certificates and more. Call 850-217-2347.

Pensacola Comic Con has grown every year since its inception and this year is expected to be bigger than ever.  My daughter and her friends are sure to attend.  Not to be confused with Pensacon at the Pensacola Bay Center in February, this convention is at the Pensacola Interstate Fairgrounds, Aug 18-20, 2017.  Targeting Science Fiction, Horror, and Fantasy fans, this convention includes celebrity meet and greets, discussion panels, workshops, screenings, demonstrations, events, gaming, costume contests, tournaments, and competitions.   www.pensacolacomiccon.com.

Music is a big part of the Pensacola community, and the summer has lots of options no matter what part of town you live. The Summer Concert Series at Big Lagoon is featuring Willie Sugarcapps from 6-9 on Aug 5th. Located in Big Lagoon State Park, 12301 Gulf Beach Hwy, the show is $15 Gen Adm, $25 VIP. The Blue Angels Music Blues on the Bay concert series continues at the Community Maritime Park downtown. Concerts are held on Sunday nights when our Blue Wahoos baseball team is not playing a home game at the park. August shows are on the 6th and 20th from 6-8 pm, and admission is free.

The Estates at Emerald Shores is walking distance to the Perdido Kid's Park and just minutes away from Perdido Key beaches. This well-maintained community is conveniently located close to the back gate of NAS Pensacola, NAS Naval Hospital and Corry Station, and a short drive to downtown Pensacola. Nestled in The Estates at Emerald Shores, 1139 Halyard Place is an oasis found. This home has an abundance of curb appeal with its manicured lawn, Palm trees, and the inviting front porch. The residence features bamboo floors, a generous open floor plan, and a split floor plan.

The kitchen is open to the formal and informal living areas making the home an entertainers dream. French doors off the living rooms and master bedroom take you out to the private backyard. Sit on your covered porch and enjoy the sun-filled Florida days and nights. A spacious Master Suite offers an oversized walk in closet and a large master bath retreat. There are three additional bedrooms and two full sized beautiful bathrooms with an indulgent amount of additional storage space. With easy access to Big Lagoon State Park, parks, boat launches and the beach, this listing offers Florida living at its finest.

Sold by Kim Gibbons at Emerald Coast Realty.

4345 Village Oaks Lane is in Woodlands, one of Pace's newest subdivisions. Located only minutes from I-10 and Highway 90, this gem is conveniently close to Walmart, Lowes, restaurants, and plenty of other shopping venues. This community is accessed thru a beautiful winding road that is nicely landscaped. The Woodlands subdivision features total electric new homes with underground utilities, street lighting, sidewalks and two recreational parks.

This home has an attractive courtyard driveway entrance and an open living space with new wood grain ceramic tile in living room. The kitchen has a breakfast bar, large island, granite countertops, large lighted walk-in pantry, and plenty of cabinet space. This home offers a split floor plan with a large master suite with trey ceiling and a ceiling fan. The master bath features double vanities, garden soaker tub, water closet, linen closet, and a large walk-in closet. The two additional bedrooms are down a hallway with a full bathroom between the bedrooms.

The large covered back porch adjacent to the breakfast area - perfect for barbecuing or a quiet place for morning coffee. The spacious fenced backyard has been landscaped and includes trees near the back of the property for additional privacy. The inside laundry room is spacious with an extra utility closet, and you enter as you come in from the double car garage.

The oversized garage has two front facing windows to the courtyard driveway. There is also new pull down stairs for easy access and additional storage in the attic. Extra features include washer and dryer, security system, in wall TV mount, termite bond, patio sliders. See all this home has to offer. Bell Lane provides easy access from I-10 to the heart of Pace Florida, and the neighborhood is only about fifteen minutes to Whiting Field and UWF.

Sold by Nicole Gilchrest at Emerald Coast Realty.

Home price growth continues, though at a slower pace, up 5.5 percent year-over-year in April, down from a 5.6 percent gain in March, according to the latest S&P CoreLogic Case-Shiller Indices.

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index's Ten-City Composite rose 4.9 percent year-over-year, down from a 5.2 percent gain in March, while its 20-City Composite rose 5.7 percent, down from a 5.9 percent gain in March. Month-over-month, the 10-City Composite rose 0.8 percent, and the 20-City Composite rose 0.9 percent.

Of the 20 cities analyzed for the Index, Dallas, Tx, Portland, Or., and Seattle, Wa., again topped the charts, with prices up 8.4 percent in Dallas, 9.3 percent in Portland and 12.9 percent in Seattle.

Is growth beginning to grind to a halt? Home prices could hit a ceiling, according to S&P Dow Jones Indices Committee Chairman and Managing Director David M. Blitzer, but not give way to collapse.

"As home prices continue rising faster than inflation, two questions are being asked: Why, and, could this be a bubble?" said Blitzer in a statement. "Since demand is exceeding supply and financing is available, there is nothing right now to keep prices from going up. The increase in real, or inflation-adjusted, home prices in the last three years shows that demand is rising. At the same time, the supply of homes for sale has barely kept pace with demand and the inventory of new or existing homes for sale shrunk down to only a four-month supply. Mortgage rates remain close to 4 percent, and affordability is not a significant issue.

"The question is not if home prices can climb without any limit; they can not," Blitzer said. "Rather, will home price gains gently slow or will they crash and take the economy down with them? For the moment, conditions appear favorable for avoiding a crash. Housing starts are trending higher, and rising prices may encourage some homeowners to sell. Moreover, mortgage default rates are low, and household debt levels are manageable. Total mortgage debt outstanding is $14.4 trillion, about $400 billion below the record set in 2008. Any increase in mortgage interest rates would dampen demand. Household finances should be able to weather a fairly large price drop."

"We expect home price indices to continue to reflect rising prices year-over-year as the inventory of existing homes at entry level prices remain constrained in major markets," says Ruben Gonzalez, an economist at a large real estate franchise. "New construction has only recently begun to bring entry-level products into many markets, and we expect it will take some time for this to have a noticeable impact on market conditions. Price gains are only likely to be subdued if we see a deterioration of demand resulting from rising interest rates at some point this year."

"Two conditions in today's market that can quickly change the home price trend are swings in the labor market or home inventory," says Bill Banfield, executive vice president at a national loan company. "Both of these factors have remained largely constant throughout the year, and we see this reflected in most metro areas of the housing market."

Source: S&P Dow Jones Indices

When I think of summertime, I think of the beach. There is no better way to kick off summertime than by celebrating the 4th of July on the beach. Fireworks are always abundant for this holiday but have a special flair when you get the reflection off the water. We tend to alternate between the celebration at Casino Beach in Pensacola Beach and the party over at Destin Harbor. Both are excellent but be sure to get there early to get a good spot. Taxis and Uber are available to those celebrating with adult beverages.

Blue Angel Weekend is the week after the 4th of July and is usually a huge draw to the area. Locals know to get to the beach early if you want to find a place to park. You may not know that the Blue's do dress rehearsals the week before the Air Show. On July 5th, you are invited to have Breakfast with the Blues. You can avoid the crowds and enjoy breakfast at a beachfront restaurant and watch the Blues pilots prepare for Saturday's show. The Blue's should be overhead around 8 a.m.

Landshark Landing is offering their Movies Under the Stars Series this summer every Wednesday evening during the summer at dusk - from 8:00 to 10:00. Bring your blankets and lawn chairs, and they will provide the margaritas and tacos! Admission to the family-friendly movies is free and open to the public. Landshark Landing is at 165 Ft. Pickens Rd in Pensacola Beach. This is an easy walk from the parking area at Casino Beach.

When my children were growing up, we went to Bands on the Beach almost every Tuesday night during the summer. Located at the Gulfside Pavilion overlooking the Gulf of Mexico, the series features regional artists performing a wide variety of music. You can bring your lawn chairs, blankets, and coolers or purchase treats from surrounding vendors. When my children were old enough, they would ride their bikes over and meet us there. This event brings lots of great memories for my family, and it is still available for yours to enjoy every Tuesday night at 7:00 (weather permitting).

Perdido Key's Flora-Bama is hosting their 3rd annual Gulf Coast Paddle Championship the weekend of the 21st. The location offers sugar-white sand beaches sitting on the Alabama & Florida State line. This is the only race where you can say "I did It on the Line and raced in 2 States!". The 9-Mile race starts behind the famous Flora-Bama Lounge and ends behind the Flora-Bama Ole River Bar. This event offers clinics, exhibitors plus lots of fun for the entire family, including those who do not want to race.

Attractive four bedroom house located in the Popular Perdido Bay Golf Club Estates Community of SW Pensacola. This sweet home at 5184 Choctaw Ave is on a corner lot, features a beautifully landscaped lawn and a swimming pool for those long summer days in the sun. The split floor plan offers a formal dining room and a formal living room great for entertaining and special occasions. A large den with a fireplace, great for relaxing. What a place to live! Close to Perdido Key Beach, Navy bases, and Shopping. You must see this one-of-a-kind home in such a great area before it is gone.

Sold by Nicole Gilchrest at Emerald Coast Realty.

This beautiful Pensacola Beach condo offers direct views of the gulf from the living room, dining area, both bedrooms as well as from the balcony. Perfectly situated on the third floor, you are close enough to see the sand dunes but high enough to get a bird's eye view of the Gulf below. Gulf front two bedroom condos in Regency Towers are in short supply and sell quickly. Make an appointment to see this pristine beach home before someone else snaps it up.

Regency Towers is located on the eastern end of Pensacola Beach and is on the trolley line. You can ride the trolley free to go to local shops, restaurants, night clubs, and watersports venues as well as down to Fort Pickens National Sea Short Park. At the end of the day, you can hop back on for a free ride home. With the ferry service coming to the area, you can take a leisurely boat ride to the mainland to check out downtown Pensacola before heading back to your beach retreat.

There are many options from which to choose. Once you return to the beach, make sure to check out the amenities at Regency Towers. This complex offers a sparkling community pool, elevators, exercise room, tennis courts, picnic area all situated in secured gulf front buildings.

Sold by Kim Gibbons at Emerald Coast Realty.

Tristan Towers, located at 1200 Fort Pickens Rd ideally located on the west side of Pensacola Beach just minutes from the Boardwalk and Casino Beach. Tristan Towers is a sound front complex offering a private pier, boat slips, a wide sandy beach on Santa Rosa Sound, tennis courts, a beautiful pool, and a clubhouse with an exercise facility. Jump on the bike path in front of complex and take a ride to Ft Pickens to the west or Peg Leg Pete's to the east.

Unit 3B is a two-bedroom condo with wrap around balconies that offer fabulous views of Santa Rosa Sound and the Gulf. Two sets of floor to ceiling sliders in the main living space lead to the balcony and offers views from the living room, dining room and kitchen. The kitchen is roomy and has lots of counter space, and plenty of cabinets. The master bedroom is on the Gulf side and has its own slider access to the balcony and gorgeous views.

Tristan Towers 3B in Pensacola Beach sold by Kim Gibbons at Emerald Coast Realty call, 850-437-5618 for additional information.

For generations past, home ownership was a significant rite of passage that signaled stability and prosperity. Millennials are commonly portrayed as being different from previous generations, particularly when it comes to their spending.  Perhaps millennials are more like older generations than people imagine. 2015 statistics released by Harvard University's Joint Center for Housing Studies show that adults under age 35 made up 19 percent of U.S. households but less than 10 percent of homeowners.  However, a survey conducted by Qualtrics shows that 88 percent of millennials who do not own a home have one on their wish list.  Qualtrics is a survey software firm based in Utah.

In fact, not only do millennials plan to own a home, they intend on owning multiple homes throughout their lifetimes.  The same survey found that 68 percent of millennials say their current home is merely a stepping stone towards the home they want to end up in, compared with 36 percent of homeowners across all generations.  Consideration was given to the idea that older generations are more likely to have already moved or bought homes more than once.  It is estimated elsewhere that more than a third of millennials are already homeowners.

Bank of America surveyed 4,906 adults, including 1,268 current homeowners and 435 prospective homeowners.  What they reported was that many millennials are actively buying homes and that they are pleased with their choice.  Among millennials who already own a home, 79 percent said their homes are having a positive impact on their long-term financial picture, with 86 percent responding that owning a home is more affordable than renting.  Steve Boland from the Bank of America reported:  "This growing group of millennials is seeing the value of getting into a home.  Clearly, the millennial generation is coming of age and realizing it might not make sense to wait anymore to purchase their first home." 

Mike Maughan, head of brand growth at Qualtrics believes the sharing economy mindset of millennials is here to stay and has changed how many people work and live.  He further states "that doesn't mean that traditional purchases such as cars and homes are less enticing to millennials."  Nearly 80 percent of millennials own cars, and of the millennials who don't own a car, 75 percent aspire to own one now.  "The world is changing, but in some areas maybe not as much as we think," Maughan said. "They're not afraid to put down roots," he said. He noted that the number of millennials who aspire to own homes holds steady whether they live in metropolitan or rural areas.   Maughan said the data is even more important now as millennials enter their peak spending years.

In one way, home ownership is working out well alongside millennial generation developments. "They are much more likely to become landlords, buying with the ability to rent it out or 'Airbnb it,' Bera said.

But whether millennials choose to spend their nest egg on a nest, or begin focusing on a portfolio the worst mistake is making no investment at all.  Millennials need to get in the game.