NW Florida Real Estate Sales Are Up, Way Up!

The first half of 2014 has produced impressive gains in real estate sales here on the Florida Gulf Coast.

When we look at the official MLS residential sales data provided by the Pensacola Association of Realtors, 2014 1st half year-over-year sales are up by 11.9%. If this were not impressive enough, 2014 June year-over-year sales are up by 18.8%.

So, what is causing this tremendous surge in property sales?

Simply put, this is the result of "pent-up demand." The real estate market here had experienced a lower level of sales from 2008 - 2011, but in each year since 2011 we have seen significant and continued improvement. Real estate sales are gaining momentum and pricing is trending upwards in many neighborhoods.

The small Investor

There is a resurgence of small investors buying multiple properties to place on the rental programs. We see this for both long term and vacation rentals. Inventory on units that produce good rental revenue are now in short supply in some complexes.

Investors have been back in business for several years now buying lower end houses to renovate then rent. Flippers continue to target distressed homes in a desirable neighborhood to renovate then resell at a profit.

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. Opportunities are 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 in today's market will not accept a contract contingent upon the buyer selling their property unless that home is already under contract. Focus on preparing your home for sale and getting it listed first. Once you have your house on the market, you can begin to explore the homes available in the neighborhoods you like. Planning your move strategically can save a lot of headaches and 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 told in 2005 it would sell for $$$" or the idea that the price they paid for the home should be factored into the equation "I paid that much for it in 2004." None of these things factor into the price for which a property will sell. A property is worth what the current market dictates its worth.

In conclusion:

We expect to see the second half of 2014 continuing the trend of growth in sales. We anticipate pricing for residential properties to increase in the second half of 2014.

If you are interested in buying, selling or would like more specific market information about your neighborhood or condominium, contact me.