North West Florida Real Estate Trends
It's a seller's market here on the Emerald Coast. House inventory is low in Navarre,Pensacola, Ft. Walton Beach, Destin and Santa Rosa Beach. Same in the Northern Bay cities like Milton, Crestview and Freeport.
With Interest rates still low it's a perfect time to grab that water front property when it becomes available. The market is so competitive buyer's need to have their loan ready to go so they can make an immediate offer. See earlier blog posts on Loan Lock In.
In many large cities, home prices have outpaced income. In Miami, for example, incomes have risen 16 percent, while home prices have increased 58 percent since early 1998. New York's Long Island suburbs have seen just a 14 percent rise in incomes as compared to an 81 percent increase in home prices. Boston home prices have gone up 89 percent, while incomes have increased only 22 percent.
What's this mean to Northwest Florida? Our smaller populations won't affect the market as much as one would think.
Experts believe a real estate crash is not headed our way. Inventory is slim, interest rates are low. Low interest rates are the only continuing positive trend of the housing market. Low rates average now less than 6 percent for 30-year fixed-rate loans, the lowest since the 1960s.
The first sector to show slowing is the high-end home market. Because of “overpersonalized” big-ticket properties, the pace of house auctions nationwide has surged. Mid priced properties are still requiring personal adjustments like home offices and designated work spaces separate from living areas.
Costal areas along the Gulf of Mexico, Bays and Harbors will have a high demand for Air BnB's/VRBO's and rentals in general. Have that second home work for you by renting it out. Monthly mortgage payments are being covered through rentals. Contact me if interested in property management.
Real-estate analysts believe that if the housing market stalls, some areas will continue to grow modestly while other markets gradually go soft, rather than pop. Especially in the Florida Pan Handle.