If I Had A Crystal Ball- Pensacola Area Real Estate Predictions- 2009

If I had a crystal ball......

I expect the Northwest Florida real estate values to drop another 12% by year's end. Perhaps the downward spiral will stop in 2010 but the days of double digit appreciation are gone for many years, maybe forever. I expect appreciation rates to be in the 2% range per year from 2010 through 2015. Perhaps we'll see some normal appreciation rates in the 4 to 6% range annually after that.

If anyone tells you to "take your house off the market until next year when things get better," run like hell! Believe it or not, I meet with sellers on a regular basis who have been told this by other Realtors! It's not getting better anytime in the near future folks! Let's say your property is worth $100K today, by year's end it'll be worth $88K. At 2% a year appreciation from 2010 on, it'll take until year 2017 to get back to the $100K you're at right now!

Buyers will remain in control of the market for as long as I can see. About 80% of the listings I see on the market are 20% over priced. There is a lot of seller denial in the real estate world. As if they have a serious disease, putting off treatment (adjusting to the real world value) will make it worse. You're losing about 1% in value as each month passes.

There is a silver lining to every cloud! If you're an investor I recommend you buy repos and hold them for rental income. You can buy a livable rental property now for $30K that will rent for $600 a month! This is where the money will be for investors. My associate, Brandon, just closed on a 3 bedroom home for $13,500 that rents for $500 per month! He has a tenant signed up and moving in on February the 1^st. If you've never considered purchasing real estate as an investment, now is the time!

Interesting article: http://blogs.tampabay.com/realestate/2008/10/downbeat-news-f.html

For more expert advice and predections, call me at 850-479-7653! Also, take a moment to check out our website- http://www.TSBRealEstate.com - it's a great resource to search for Pensacola area homes and for more information about our area!

- Sandy Blanton, CRS, GRI, Pensacola's #1 Realtor in 2007 and 2008. I'm not bragging, I'm applying for a job. I want to be your Realtor!