As a graduate from the University of West Florida with a degree in Finance, it comes as no surprise that I am a numbers person. The old adage that “numbers don’t lie” is so true when it comes to evaluating everything from your own personal check book to investment properties to market statistics and so on. From this point on, I am going to be updating you with the key statistics that I follow to stay on top of the local market.
Note that I use the phrase local market. Real estate is a highly localized industry. When you hear in the news that, for instance, Boston or Miami are such down trodden markets and that everyone is drowning underwater in their homes, that is solely for Boston and Miami markets. That is not how Pensacola real estate, or even Escambia County real estate, is acting. Despite what is being reported, as a Real Estate professional who follows statistics monthly, weekly, and even daily, I can attest that the market is improving. Have we officially hit bottom and are on the endless trend upward; not sure since I don’t have a crystal ball. However, I do have the statistics to show that the LOCAL real estate market is doing just fine.
First and foremost, I follow the total number of sales per month that occur for each month as reported in the Pensacola Association of Realtors. From the following table, you can see that for June, PAR recorded 472 listing sales. This is up from 442 in May. As you can see from the graph, from January to June, YTD sales have been quite steady with a small trend upward.
Next, I like to follow average monthly residential sales price. This is the average of all the homes sold within a given month. So, an easy way to figure this is to take the total sales volume for any given month and divide it by the number of sales from the graph above. As you can see in the graph, aside from the crazy spikes in the “Bubble” the average monthly sales price is trending on an average appreciation line of 5% annually. This goes to show that not all homeowners are completely underwater in their homes.
The next graph I find most intriguing to follow. Ask anyone about real estate in the local market and you will get one of two answers. It is either “bad market” or it is a “buyer’s market.” As the first two graphs illustrate, it may not be a GREAT market, yet, but it definitely is not a bad market. This next graph shows that it has not been a “buyer’s market” for some time now. Note how the number of residential listings is actually DECREASING for all of 2011. You can see in the graph that we usually experience a “hump” where there is a flood of residential listings around spring time. For 2011, that flood of listings never occurred and as such, your typical supply and demand scenario kicks in; Less supply drives demand up which in turns starts moving prices higher, as shown in the last graph. This is by far the most shocking statistic to people since it is being reported, and I guess understood, that it is has been a buyer’s market for some time and that is will be a buyer’s market for some time. The numbers don’t lie though, and for the past 6 months it has been a neutral market.
As you can see, from the numbers that is, that the LOCAL real estate market is holding up very well. Despite was is being reported across the nation and despite what the stigma may be about real estate today, the local real estate industry is improving.
I hope you find this information valuable in your search for the right property. I hope to add a few more statistics as my research broadens to help you, as a buyer or seller, make the most informed decision possible.
As always, I am here to provide REAL solutions to all of your REAL estate needs.