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Archive for Pensacola Real Estate

Pensacola Real Estate Featured In USA Today

For those unfamiliar with the Pensacola area, it is a hidden gem nestled on the Emerald Coast in the Panhandle of Florida.  Half way between Mobile, AL and Destin, FL, Pensacola is a relatively quiet little town with some of the best real estate deals available in the state.

As featured in a recent USA Today article, this little slice of paradise that I call home has seen trouble from hurricanes and the economy, but remains strong in the face of adversity.  As we continue to locate a bottom in the housing market nationwide, the deals here are already jaw dropping, and gaining the attention of investors all over the country.

One project in particular that I have gotten many calls on lately is the Purple Parrot Condominium project on Perdido Key.  Perdido Key is about 15 miles southwest of downtown Pensacola.  Being an island, only connected to the mainland by bridges on either side, this tropical oasis makes you feel as though you are in the laid back lifestyle of a caribean island.

The Purple Parrot is unique in many ways, but what really turns heads is the price.  For less than $100,000, you can buy a 1 bedroom bungalow, walking distance from the beach, that is reminisant of Key West.  (For those familiar with Key West, you can not buy a walk in closet there for that price)

For information and pictures of units available, visit to check out available listings.  Or, call me at 850-221-8334 for your mortgage related questions and to get pre-approved to purchase.

Pensacola Mortgage


Thursday June 12, 2008

If you are waiting for the bottom in the real estate market, you may lose out.

As we continue to see volatility in the financial markets, the question comes up about when is the right time to buy in today’s market.  Do you wait until the nightly news tells you it is time?  Do you listen to your real estate agent who clearly has a vested interest in the transaction?  Do you listen to the statistics reported for your local area?

Real estate is a highly localized market.  What is good in your backyard, very likely is not the same 100 miles down the road.  This fact alone should make you reconsider blindly following the talking heads on T.V.  That being said, there are more factors at play when purchasing property than just the market price as a whole, or where the “bottom” may or may not be.

In the Bond market today, we will very likely see the 25 day moving average cross over the 200 day moving average.  This is significant because it means that short term volatility is turning into a long term trend.  Historically, when the short term average moves over the long term average, the trend will continue to move in that direction.  Newtons law explains that “objects in motion tend to stay in motion”.  It is the same reason you wear a seat belt in a car, and the same reason that football players wear pads.  Over the last 2 years, every time the short term average has moved across the long term average, the trend has been in that direction for at least 3 months.  While we are living in a time that goes against the grain historically, certain truths still warrant discussion.

So what does that mean if you are looking to buy a home, and you are waiting for the bottom to hit in the market?  Here is an example:

If you get a 200,000 mortgage at 6.25%, your monthly payment would be $1231.43 (not including taxes and insurance and mortgage insurance).  If you continue to watch the market and the same mortgage comes down to $190,000, but at the same time rates go to 7.25%, your new payment would be $1296.13.  So congratulations, you got a better deal on the house only to have a payment that is $64.70 per month higher.

If you are paying cash, this example holds much less weight.  But in the real world where most people borrow money to buy a home, it is significant.

My point is, don’t watch the national news to get information about whether you should buy or not in your local area, it is just too general to be accurate.

Pensacola Real Estate Is Making A Comeback!

New housing report shows the best quarter of the last 5 consecutive.

The post below is cut and pasted from a report that I received from Emerald Coast Appraisal Services.  I have been saying for a while that the market appears to be picking up, and here is the proof of it.  Not only did housing sales increase, but of the 19 metropolitan markets studied in Florida, Pensacola came up with the largest increase.  A special thanks to Roger Kinnard for making this information available.

Emerald Coast Appraisal Services

409 S. Navy Blvd.

Pensacola, Florida 32507

Phone: 850-455-3333 Fax: 850-456-0192


The State of the Pensacola Housing Market – 06/2008

(Roger Kinnard, St. Cert. Res. REA #2782, RAA)

As spring transitions into summer, our real estate market appears to be gaining some momentum and the traditional sales season is underway. Many indicators of activity are up and the message that this is a buyers market and a good time to buy appears to be sinking in. While all of the positives are tempered by the remaining overabundance of active listings and declining values in many segments of the market, they are undeniable.

The Office of Federal Housing Enterprise Oversight issues a housing price index every quarter that measures housing price trends in numerous metropolitan statistical areas throughout the country. The Pensacola market has posted 5 negative quarters in a row, until now. The latest housing price index shows Pensacola gaining .76% in the first quarter of 2008. While less than 1% many not sound impressive, it is the highest number posted by any market in the state of Florida. Out of 19 markets studied in Florida only 3 posted a positive number and Pensacola had the highest increase.

The latest statistics issued by our own Pensacola Association of Realtors show that the median price for May 2008 ($170,900) is higher than the median price for May 2007 ($170,500). While the volume of sales continues to lag behind last year by around 24%, the number of sales has increased every month since January. Supply has remained stable at around 6,400-6,500 units for sale throughout the year to date.

The significance of these signs of stabilization is twofold. Not only are they positive indicators for the future of this market, but they could also affect the number of potential buyers who can qualify for loans. On the basis of previous OFHEO reports, association of Realtors information, and other sources of data, FNMA and many individual lenders have designated the Pensacola market to be a declining market. A loan originated in a designated declining market has different underwriting and qualifying standards. While FNMA has recently announced changes to their policy of requiring higher down payments in declining markets, many lenders remain tentative about making loans in declining markets. If these positive indicators hold true, it is possible that Pensacola may be taken off the list of declining markets.

As mentioned previously, FNMA has recently (starting 06/01/2008) made changes to their loan-to-value policies. A mortgage originated through desktop underwriting can qualify for up to a 97% loan, even in areas that are designated as declining markets. This will allow borrowers who need these types of loans to have another option, besides FHA.

With these positive indications, the first we have seen in a long time and the possibility of more open, available financing, the prospects for the market are much brighter than they were just a few months ago.

Our market remains segmented. Some areas are showing signs of stability, while some areas remain in decline. Even varying price ranges within a specific area are performing differently.

The following charts and tables show how different two segments of the same market can be. While Z2Y1 and Z7Y2 are only separated by 3 or 4 miles, the difference in performance between the two areas over the past year is notable.