The Pensacola Florida residential real estate market has undergone many changes over the past nineteen years. One of the best ways to understand what has happened and where we are today is to analyze monthly home sales data and trends illustrated by the resulting charts.
Sales in the Greater Pensacola and beach areas of condos and homes remain in record territory as seen in the monthly listing sales from the Pensacola MLS on the chart below.
There were 757 residential sales in May 2020. This is down from the previous month and year-over-year sales. Last year there were 994 sales in May.
Inventory of homes and condos is very low, and the average residential price this month is at $254,127.
The real estate market is continuing to be running hot, and sales are substantially greater than the past ten years sales. The market now is considered a solid "seller's market".
See detailed information about the most recently sold homes in Pensacola and Pensacola Beach to understand best what today's real estate market is doing. By looking at the charts below, you can see historically what the market here is doing. By looking at recently sold prices, you can see what is happening right now.
The chart below represents January 2001 through May 2020 Pensacola real estate monthly sales of residential homes. The horizontal axis is the month, and the vertical axis is the number of monthly home sales.
The chart above clearly illustrates the housing bubble that started in 2001 and ended in 2008 as well as the tremendous real estate expansion that began in 2010 and continues today.
The housing bubble that affected all real estate markets in Florida was the result of the credit bubble that provided very cheap short-term credit.
The current sales that we see in Pensacola have exceeded "normal" market conditions as the market continues to grow in 2020.
That is, people are buying and selling homes in the Pensacola area at levels that are now above 2004 levels. When you examine the home sales in 2000 and 2001, you will see there is a consistency that reflects and are indicative normal Pensacola market conditions. The current market has exceeds the normal trend.
There are still some good real estate values available on a case-by-case basis, but overall prices are slowly increasing. Good values sell quickly while overpriced properties can stay on the market for years.
During a period of normal Market Conditions, people buy and sell for reasons such as; job transfers, up-sizing, downsizing and new home buyers entering the market for the first time. During this period, there are more investors that are looking for and finding values.
The Pensacola area monthly average residential sales price have seen steady increase in the appreciation rate in 2020. Comparing May 2019 to May 2020, there is a 0.2% rate of average appreciation in the Greater Pensacola area. The overall appreciation over the past six years is 9%.
The inventory of listed homes in the greater Pensacola and Destin markets in a "seller's market." The current inventory of available homes and condos for sale is the lowest it has been the last eleven years, since 2005.
The number of months inventory is a good indicator of the current real estate market condition, that is, is it a buyer's, seller's, or neutral real estate market. Under four months is considered to be a seller's market. The May number of months inventory is 2.1 months, this is very low. This is the number of months it would take to sell the current inventory of real estate listings.
The chart above provides information regarding how long homes take to sell on average; this measurement is referred to as "number of days on the market". The smaller the number means homes are selling quickly. The days on the market for May 2020 is at 48 days, this is very low for the Pensacola market as the chart above illustrates. This is record low territory for days on the market.
Take the time to see everything these detailed real estate reports can provide to property buyers and sellers alike.