The first half of 2015 has produced striking gains in real estate sales along the Florida Gulf Coast. When we look at the official residential sales MLS data provided by the Pensacola Association of Realtors, 2015 first half year-over-year sales are up by 18.6 percent. If this were not impressive enough, 2015 June year-over-year sales are up by 18.5 percent as well. This makes 2015 the third highest half year ever.
So, what is causing this dramatic surge in property sales?
Simply put, this is the result of "pent-up demand". The real estate sales from 2008 - 2011 were slow as this was the bottom of the market, but in each year since 2011 we have seen significant and continued improvement. We are also seeing the effects of looseing credit standards which is allowing more buyers to get loans.
Real estate sales are gaining momentum and pricing is trending upwards, but the amount of appreciation varies by area and neighborhoods.
The small investor
Small investors continue to buy multiple properties to place on the rental programs or use as second homes with the added value of rental income. We see this for both long term and vacation rentals. Inventory on units that produce good rental revenue are now in short supply in many complexes.
Flippers are targeting homes with with good potential values in desirable neighborhoods to renovate then resell at a profit. It is getting harder all the time to secure these good valued properties before someone else does due to the competition here.
How should a buyer approach the market?
Properties that are priced to market value sell quickly so today's buyer must be prepared to act quickly when these opportunities are discovered. Good opportunities are being lost by buyers who procrastinate. Buyers need to be proactive in anticipation of making an offer by getting pre-approved for a loan. This shows the seller that the buyer is serious and qualified to proceed with the offer being made.
What if you have a property to sell first?
Most sellers now days will not agree to a contract that is contingent upon the buyer selling their property, unless that home is already under contract. The key is first preparing your home for sale and getting it listed. Once you have your house on the market, you can begin to explore the homes available in the neighborhoods you like. The good news is, properties are selling quickly virtually everywhere. Plan your move strategically and can save a lot of headaches and to avoid the perception of lost opportunities during the process.
What should sellers do?
The biggest mistake sellers make is listing their house or condo above market value. Sellers often want to base the sales price on personal needs "This is what I need to get", "I was once told my home would sell for this price " or thinking that the price they paid for a property should factor into the amount they should get for it now. None of these things factor into the price for which a property will sell. A property is worth what the current market dictates its value to be.
We expect to see the second half of 2015 continuing the trend of growth in sales. We anticipate pricing for residential properties to increase in the second half of 2015.
If you are interested in buying, selling or would like more specific market information about your neighborhood or condominium it is important to contact me so I can help guide you through this changing market place.
Emerald Coast Realty
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