The Pensacola Florida residential real estate market has undergone many changes over the past fifteen 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.
The sales of Pensacola homes remains high as seen in the monthly listing sales from the Pensacola MLS on the chart below.
There were 857 residential sales in August 2017. This is the second best August ever, only surpassed in 2004 with 884 sales. Last year there were 750 sales in August.
Inventory of homes and condos remains low, and the average residential price is at $233,400; this is 18% appreciation rate Y-O-Y.
The real estate market is continuing to heat up, and sales are substantially greater than the past ten years sales. The market now is considered to be a seller's market.
See detailed information about the most recently sold homes in Pensacola 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 1999 through August 2017 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.
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 2017 (also see First-Half 2017 year in review).
That is, people are buying and selling homes in the Pensacola area at levels that are now above 2002 levels. When you examine the home sales in 1999, 2000 and 2001, you will see there is a consistency that reflects and are indicative normal Pensacola market conditions. The current market has now exceeded the normal trend.
The inventory of listed homes in the greater Pensacola and Destin markets has entered 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.
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.
See our article on 2016 residential sales year in review.
The Pensacola area monthly average residential sales price have seen a major up tick in the appreciation rate in 2017. Comparing August 2016 to August 2017, there is a 18% rate of average appreciation in the Greater Pensacola area.