Florida's Emerald Coast: A Buyer's Paradise

It's not a stunning revelation in today's economic times that buyers see home sales transactions heavily weighted in their favor. Today (May 7, 2008) there are 6,653 homes listed for sale in the Pensacola MLS. During the month of April, 382 homes were sold spending an average of 157 days on the market. The average sales price, $202,591, was at 93.88% of listed price to sales price. It seems the rule of thumb in April was to negotiate about 6% less than listed.

For the same month in 2007, 503 homes sold at an average price of $220,483 or 96.37% of list price to actual sales price. Homes averaged 131 days on the market before selling. In April of 2006, 630 homes sold at the average price of $203,787 or 95.71% of sales to list price. Average time spent on the market averaged 96 days.

It's interesting to note that this three year span is somewhat removed from the bubble created by Hurricane Ivan in Sept. 2004. Judging by these statistics alone, it appears we have returned to 2006 home values. The factors taking us back to the future are: reduction of buyers because of stricter mortgage qulifications due to the sub-prime mess, increase in home vacancies due to rise in foreclosures, and increased vacancies of new home inventories. According to the US Census Bureau, the nation's supply of empty homes rose to a record 18.6 million during the first quarter of 2008.

The Pensacola area is feeling the ripple affect caused the glut of empty homes. If any buyer doubts whether this is the best time to buy, they should definitely reconsider. As with any economic event, there are cycles involved. Do I think the market has hit bottom? No, there is still some wiggle room in establishing a pricing strategy.

However, many home sellers are beginning to realize that home values and home prices are not the same. The prices at closing are real numbers. Perceived home values are not. Today's smart sellers are taking this fact to the bank. Today's smart buyers are watching the market cycle closely. Now is the time to buy.

Real Estate Direct is prepared to help you find the perfect fit at the perfect price. Please give us a call for your residential, investment, or property management needs: 850-525-2240, "www.REDpensacola.com"