Pensacola Area Realtors Still Optimistic
In a year marked by falling home prices, record-high inventory and shocking hikes in property taxes, putting a positive spin on the Pensacola area’s 2006 housing market would seem a difficult task.
But according to the Pensacola News-Journal, some local Realtors are doing just that, looking past the roller-coaster year and the homeowner’s insurance quagmire gripping the state to strike a similar theme: “Things aren’t that bad, and it’s a great time to buy.”
“In spite of a lot of bad-looking data, this year in Pensacola is going to end up probably better than the state and certainly better than most of the counties in the Panhandle,” said Auby Smith, the outgoing president of the Pensacola Association of Realtors. “In fact, it’s going to be the third best year (in terms of sales volume) ever.”
Smith added he is optimistic about 2007 because Florida mortgage rates remain low and residential home prices have settled back to realistic market levels. Veteran Realtor Al Ingram agrees with Smith that it’s a buyer’s market.
“In my 25 years in the real estate market, I’ve never seen a better time to buy or sell. Inventory is high, but mortgage rates continue to be low,” Ingram said, adding that sellers finally are reducing unrealistic prices for their homes and letting the market price their property.
Houses priced “at market” are selling relatively quickly, experts say.
Despite Smith’s and Ingram’s upbeat take on the North Florida housing market, the inventory of unsold homes remains at record levels. At the end of last week, the Pensacola MLS had more than 6,400 homes on the market, and that number excluded houses “for sale by owner.”
That consistently high amount of inventory, which has hovered above 6,000 for the past six months, worries Al Muller, co-owner of Metro Market Trends, an independent Pensacola firm that monitors home sales.
“The biggest question coming up with people I talk to is, ‘With more than 6,000 homes for sale, just what do those people do when they sell?’ ” Muller said. “How many have left the area because of hurricanes, high insurance rates and property taxes? That’s the critical question.”
While Muller said he lacks the data to answer that question, he points to recent U.S. Census data that show Escambia is one of only two counties in Florida — the other is Monroe — that have shown a net loss in population between 2003-2005.
Much of that loss can be attributed to the effects Hurricane Ivan had on Pensacola Bay Area housing stock, Muller said. But the question remains whether many former residents have left Escambia County permanently due to problems making Florida home mortgage payments or for other reasons altogether.
Ingram, however, believes that a large portion of the housing inventory is composed of large homes occupied by baby boomers looking to downsize.
“What I see happening is people selling larger homes and buying some smaller, newer houses with lots of amenities. With taxes and insurance so high, people are putting more into less,” Ingram said.
June 5th, 2007 at 6:14 am
[…] down by a lukewarm Pensacola housing market, the Pensacola area economy is nevertheless starting to show encouraging […]
October 15th, 2007 at 6:25 am
After residing in Pensacola for 33 years, I have become a recent home seller there, moving completely out of the State. And for all of the reasons cited in the article, plus a few that where missed.
Having paid a substancial mortgage for 30 years, I just didn’t feel like “starting all over” by paying an equivalent amount to my insurance company and Escambia County in order to continue to live in my prior home. I especially did not feel like paying increasing tax or insurance rates, particularly when the latter, to remain affordable, required an unreasonable increase in home owner deductables. I understand from my former insurance agent that this is the tack being taken by many home owners. It’s a risk they are bound to regret sooner or later.
As the article states, being retired (something it used to pay to be in Pensacola) I was able to “upgrade by downsizing.” The sale of my home in Pensacola, on an 85″x125′ lot, completely paid for a smaller home on over an acre of land in the mountains of NC, and left money in the bank for upgrading the new home to suit my taste. And I mean starting with new furnishings, etc.
And that was an “upgrade” in many other ways as well - total peace and quiet - no rubbing elbows with neighbors - no more vile lyrics from boom boxes as automobiles use so called “speed bumps” for launching ramps - no sirens screaming in the middle of the night - zero crime - and virtually no humidity - and that’s not all…
When I talley my bills at the end of the month, I can pay ALL of my utilities, including such options as cell phone, DSL, satellite TV, for a fraction of the price of one summer time Gulf Power bill.
Taxes and insurance on my new residence are exactly 50% of what they were on my residence in Pensacola. So, did I leave because of taxes and high insurance rates -Yes.
Did I leave because of hurricanes - Yes - Having lived thru everything from Frederic to Ivan and Dennis, I became all to familiar with filing insurance claims and working my aging posterier off cleaning up and repairing my former property - time I now spend trout fishing and sight seeing in my new locality.
Did I leave because I was a baby boomer - No - older than that - left because I was retired and wanted to spend my time and money doing something besides shelling out money on a house in Pensacola.
Did I leave because of utility costs - Not initially - that was a big, fat bonus realized only after having lived in my new residence for a full year and discovering I was now making a large contribution to my savings account instead of local utilities companies in FL.
Were I to contribute a guess as to why many residents have sold their homes in Pensacola and left with no intent to return, I would say (1) Ivan initially gave them a reason to sell at an inflated rate - the rest of us have pulled out, while we still can, at “market prices” that enable us to not have to incurr another mortgage on a newer home. (2) Those that could, simply did.
Unless you are employed in Pensacola, have kids in school, etc., there is very little reason to stay there. I have everything I need that I once used in Pensacola in a nearby town.
Which brings up another thing - don’t know the official figures on BRAC - but it couldn’t have helped matters any. There will be no “replacements” coming aboard to buy the houses that were vacated by former members of the military originally stationed there - myself included.
Pensacola used to be sold on primarily two things (1) the beauty of the area, and (2) the low cost of living. A lot of the former ended up as mulch out on Nine Mile Road, and the latter has
been virtually cancelled by the new cost of living associated with taxes and insurance. What the hurricanes didn’t destroy, it seems that local officials are determined to render asunder.
Nope, it costs more than just money to live in Pensacola - you can testify to that yourselves as you go from your AC house, to your AC car, to your AC place of work, or some AC place of business or entertainment. It takes a very compelling reason to live there and with jobs leaving the area I’m afraid you are going to see the “current trend” persist for a long time to come.