Blog Northwest Florida

Since my real estate office is on Pensacola Beach flood insurance is always a "Hot" topic with my real estate clients. Who should buy flood insurance? What does it cost? What is a specila flood hazard area? These are crucial questions when looking at purchasing on or near the water.

Flood insurance is a MUST PURCHASE if you live in a special flood hazard area. According to the Santa Rosa Island Authority Pensacola Beach had 3,349 flood policies in force as of June 2008.

Flood insurance is provided through the National Flood Insurance Program (NFIP) which is federally backed and available to everyone, even those who don't live in a special flood hazard area. Flood insurance is always a separate policy from your homeowners insurance policy, so don't get into the mindset that you have homeowner's insurance so you are covered for flood . . . this just isn't the case.

In my real estate market area, Escambia and Santa Rosa counties, we saw hurricanes in both 2004 and 2005 which resulted in flood insurance claims. Unfortunately, many homeowners - and those with second homes on the beach - were not covered for flood damage. Don't let yourself be caught by surprise like this! When arranging for a home sale I - and my team - always make sure our real estate clients are aware of the necessity for appropriate coverage.

Should you have any questions about flood zone determination on Pensacola Beach, or in other areas of Escambia or Santa Rosa counties, feel free to call me at 850-516-8185.

Click Here for an article on Pensacola Beach improvement plans

I'm so proud of our Pensacola Bay Area Coldwell Banker United Realtors who fielded a team and turned out EARLY Saturday morning to raise funds and awareness for breast cancer research!

Our team joined others in Pensacola - over 5,000 strong - in a sponsored walk that raised over $165,000 in just one day. The Pensacola area Coldwell Banker United Realtors were able to raise more than $3000 in donations.

In addition to Coldwell Banker United Realtors from our Pensacola Beach office, Ruthie Johnson, Jessica Schnell, Kelli Malone and Bobbi Blades, Realtors from several other Pensacola offices participated in the event.

The walk started at Cordova Mall with a kick off celebration and the award ceremonies were conducted at University Mall. The Making Strides Against Breast Cancer is an annual event sponsored by the American Cancer Society.

My SUPER team of Northwest Florida Realtors just sold a $500,000+ home in less than three months in a market where the average(read - less expensive) home is selling in 5.5 months. How did we do it? By following some tried and true rules of the real estate trade:

#1 Price it Right! This home had been handled by two other real estate groups and been on the market for over a year when we took the listing. Do you think the house was priced right from the beginning? Of course not. And as our market slowed and prices dropped the seller did not drop the price of this home to match . . . a condition we call "chasing the market." By providing the seller with up-to-date, accurate comps we were able to convince them of the appropriate price range to attract a buyer in the current market.

Here are a few other suggestions for selling your home quickly - ones that we always employ - provided by William Bronchick and Ray Cooper, authors of How to Sell a House Fast in a Slow Real Estate Market (2008: John A. Wiley & Sons).

Have Information Available - Buyers need their questions answered, and answered in a timely manner. You need all the key information at your fingertips. Wat are the local taxes? Do you have utility records? Are their covenants and restrictions in the neighborhood? These are only a few of the important questions that buyers want answered.

Market to the Neighbors - They already know and - presumably - love the neighborhood. Give them a chance to be an ambassador for your listing.

Make Sure the Seller Understands the First Offer Rule - And old real estate maxim: the first offer is usually the best offer - is one I've seen born out time and again. The first person to make an offer on the house is likely someone who has been watching the neighborhood for a home. Even though the offer may be low, we always encourage our clients to come back with a counter-offer.

For similar Real Estate Articles - particularly on the Greater Pensacola Bay Area - Click Here

Woo Hoo and Yippee for Me and My Dedicated Team! Not usually one to run around and "Toot My Own Horn," I just have to share this news. The Robin Sherman Realtor team was one of the top 10 Coldwell Banker real estate teams in Florida for the second quarter 2008. Yes, that's right . . . little 'ole us from Pensacola . . . Robin Sherman, Ruthie Johnson and Harriett Gilbreath!

How'd we garner this real estate distinction you ask. By working hard, respecting our clients and delivering what they want elegantly and efficiently. But what - exactly - did we do? We listed more properties and sold more properties in the second quarter of this year than all but 9 other Coldwell Banker teams in the state. And who knows . . . they didn't give us our number ranking so . . . suppose we were number one? Say it could be so!!!

Now, before I let my dreams of jetting off for talk show interviews take over I'll come back down to earth to share something important that this distinction proves: REAL ESTATE IS SELLING! If homes are priced right there are buyers waiting to buy them.

Look for more good things from my team in the future as we are constantly looking for GREAT ways to serve our clients' real estate needs. We have a SUPER new home search website that you can access by Clicking Here.

We're pretty darn proud of our track record and we thank you - dear clients, each and every one - for helping us climb these heights!

How lucky am I? VERY, VERY lucky! Being an active real estate agent in these trying times, I try to remind myself every day of the many ways I count myself lucky!

So here's number one for today: I have tagged along on one of my husband's business trips to Lake Tahoe. Doesn't get much more lucky than that, but what - dear reader- you ask does that have to do with real estate and affordable housing in Pensacola? Well, absolutely everything!

Do you have any idea just how lucky I am to be a real estate agent in an area where housing truly is AFFORDABLE? In today's trying economic climate it makes the difference between making a home sale - and bringing home a paycheck - and looking for other employment opportunities until the housing market turns around. 

So number two for today: I live and work in an area - the Greater Pensacola Bay Area - of AMAZINGLY AFFORDABLE housing.

I had the good fortune (luck again) to meet a young couple in the hot tub at our hotel here in Lake Tahoe. They live just south of San Francisco and were telling me that when they bought their home almost two years ago they were fortunate to pay only - ONLY - $590,000. Did I mention this was a young couple? Perhaps in their early thirties? They were bemoaning the fact that when they bought the home they thought they were lucky (fortune again) to pay less than $600,000, in a neighborhood where most of the homes were selling in the mid $600,000s. Today there are several foreclosures in their neighborhood of approximately 150 single family homes, and while they realize their home has lost value, they estimate it would still sell in the mid $500,000s today.

So, what is the average sales price for a single family home in the Pensacola area? From October 21, 2007, to today, the average sales price comes in at $177,750. I don't discount the importance of wages in the area and certainly Pensacola can not compete salary-wise with northern California, but WOW what an affordable housing market Pensacola really has!

Want to know more about home values in Pensacola? Click Hereto visit my blog at Active Rain. 

I was fortunate enough to hear local economist Al Muller's latest update on the Pensacola Bay Area housing market at a Coldwell Banker United Realtorsmeeting at Pensacola Junior College yesterday. As always with Al, I had several "Ah Ha" moments, but one of my big take-aways was his rundown on the  "Demand Factors" that impact housing.

Al pointed out that - get this - the drop in gas prices from $4 a gallon to $3 a gallon is the equivalent of the recently initiated $150 billion economic stimulus package where checks were sent to all American households this spring. The difference is, the economic stimulus package provided by the drop in gasoline prices is not a one time stimulus, but and ongoing MONTHLY stimulus. When Americans found themselves putting an extra $200 a month into their gas tanks something had to give. Unfortunately for some, this took a toll on their ability to pay their mortgage.

Some of the other demand factors for housing that Al noted have moved - or are moving - in a positive direction are food and energy prices, high property taxes, the credit crunch and declining home prices. As housing prices decline, the federal government takes action designed to get credit flowing again and local jurisdictions come under increased pressure to lower property taxes people begin to see opportunities for home ownership once again. And guess what . . . with so many potential buyers sitting on the sidelines for the past two years there is definitely a pent up demand for home purchases.

Pensacola's Downtown Improvement Board just had their annual meeting and the keynote speaker, Leland R. Speed, told attendees that Pensacola's small town charm and big city amenities position it particularly well to take advantage of the next major demographic trend: movement from large cities to small cities with high quality of life.

Speed, the former executive director of the Mississippi Development Authority, pointed out that Pensacola's waterfront is vital to the city's economic success.

"When I look at what you have here, I salivate," said Speed. He told the audience that the opportunities the downtown waterfront and properties afford the area are truly unique in his experience. Speed mentioned the physical assests including historic buildings and waterfront and waterview land that is available for development.  

Some positive growth numbers for downtown businesses were also presented at the meeting. A recent survey showed that downtown Pensacola is home to 578 individual businesses with at least one employee and that the number of workers in downtown Pensacola is just lest than 10,000, a net gain of 831 workers since January of 2005.

Given the constant barrage of bad economic news, who would guess that little 'ole Pensacola, Florida, has the third highest job growth rate in the state. Or even more unbelievable, that Pensacola's five years of job growth put it in place number 29 for the nation. As Carlton Proctor pointed out in a Pensacola News Journal article today, nearby Mobile, AL, only ranted in the 125th place and powerhouse Atlanta rated number 59.

These numbers come from a study by the privately funded Milken Institute. The study pointed out that Pensacola's overall ranking, including one-year and five-year growth rates, put it in the 33rd place in the nation.

So we hear enough of what Pensacola is doing wrong, what is the city doing right? Surely something to garner such good job growth rankings. Many point to the growth of small high tech firms who find the Pensacola Bay Area's proximity to area military installations- NAS Pensacola, Hurlburt AFB, Eglin AFB and their associated defense industry contractors - as one of the drivers of this job growth. The Pensacola Bay Area Chamber of Commerce has worked hard to promote both tourism and job growth and should be lauded for innovative economic development efforts like I-10 Wired, an outreach and networking initiative to help small high tech firms connect.

But our affordable housing, award winning schools and good quality of life are also responsible. So, let's resist jumping on the negative bandwagon and look around at what is really going on in Northwest Florida!

Looking at a graph of residental sales for the Pensacola real estate market could make you feel a bit like you are racing down the back side of a roller coaster's big loop. The number of sales has fallen dramatically from the late 2005 and early 2006 highs. However, actual Pensacola area home sale prices haven't fallen nearly as dramatically. What are the numbers and what do they mean?

Escambia and Santa Rosa Counties (Pensacola Area) Total Number of Single Family Resales

Last week I attended a presentation by Al Muller from Metro Market Trends, a company that has been tracking and reporting on real estate sales since 1990. Some of the points he made about Pensacola area real estate home sales trends are well worth sharing. The graph above shows a 12 month moving average of actual home sales in the Pensacola area: Escambia (Blue Line) and Santa Rosa (Green Line) counties.

Some of the conclusions to be drawn include:

• The run up (2002 to 2006) was a historic economic event which has never happened before, or as Al put it, "a boom of historic proportions."
• The graphs for most Florida counties look roughly the same, as shown when comparing Escambia and Santa Rosa.
• Hurricane Ivan was not really significant in spurring the run up; the market was already hot.
• 2001 was the last year of a "normal" real estate market.

Below is another great graph Al provided which shows the residential resale numbers in Escambia County from 2005 to 2008. The trends look almost identical for Santa Rosa County. Note that the monthly number of Pensacola area real estate resales peaked in 2005 (Jan. to June) at roughly 800 units. In 2008 this peak was only about 270. By anyone's measure, this is a huge decline.  

Escambia and Santa Rosa Counties (Pensacola Area) Median Price for Residential Resales

But what has happened to home sale prices as Pensacola real estate sales have declined so precipitously? Well, they haven't dropped nearly as much as you would expect. Al's next graph shows how the sales have slowly inched down.

There are probably numerous reasons why prices have not fallen more dramatically. Many sellers have "chased the market down" by pricing their homes above the true sales value. Many sellers that bought from 2004 to 2006 feel stuck in their homes as they paid more than for them than they can sell them for today. And many sellers have just been slow to recognize the market for what it is.

As an agent I will admit to finding myself "chasing the market down" on more than one occassion when dealing with reluctant sellers. More than a year ago I instituted a policy of NEVER taking overpriced listings. My total number of listings has dropped, but my success rate measured in closed sales has increased since making that decision.

So Where is the Bottom of the Pensacola Area Real Estate Market?

That's the question we all have. Al Muller thinks he has the answer. At least he has the best backed prediction that I have seen and here it is:

This graph shows (Dotted Yellow Line) the historic real estate sales rate for the Greater Pensacola Bay Area. It also shows (Blue Line) the actual real estate sales rate. Where the two lines intersect should be the elusive "Bottom" of the Market. The sales trend for Santa Rosa Count residential real estate resales looks much the same.

What can we conclude from this graph?

• Prices for residential real estate in the Greater Pensacola Bay Area must still drop. Al Muller estimates a necessary 7% drop for Escambia County and a 16% drop for Santa Rosa County.
• Equilibrium, or "the Bottom" of the market will occur in late 2010.

Implications for buyers and sellers in Northwest Florida

As a buyer, you are in a window of opportunity. Mortgage rates are inching up and credit is getting tighter so if you are in the market go ahead and make your offer. Negotiate fiercely knowing that the market is still overpriced.

As a seller you have two choices. Reduce your price to match the current market and sell now or take your home off the market until it reaches your expectations and then relist.

All graphs were provided my Metro Market Trends

Energy Conscious? Score Big with Walk Score when House Hunting . . . one of the MANY interesting things I learned while completing my Eco-Broker real estate designation was about a web site, www.WalkScore.com, where you can find "walkable" places to live. With ever increasing gasoline prices, this is pretty compelling, don't you think? Well you know me, I just had to check out my current home in Gulf Breeze to find the Walk Score.

So here's what I learned about my Gulf Breeze home's "walkability.". My home has a walk score of 11 out of 100. Pretty pitiful - and shocking - when you consider I live on a bit of a hill overlooking the beautiful Santa Rosa Sound where I can watch sailboats and pelicans glide past while I take my morning walk. All that in nice weather MOST of the time.

It turns out the Walk Score for an address - a home's Walk Score - is not about the beauty or comfort of a walk, instead it is designed to help consumers figure out how to live a "car lite" lifestyle. So what does the program consider when determining a Walk Score for a particular address? Here are some of the factors:

• Is there a "Center" - as in shopping, markets, businesses?
• What's the population density?
• Is the area mixed income/mixed use?
• Are there parks and public space?
• How accessible is the area?
• Are there well connected streets with speed control in place?
• Is it close to schools and workplaces?

Now, before you begin to think that this is the coolest real estate tool to come down the pike, consider some of the important things the algorithm doesn't take into consideration:

• The availability of public transportation.
• Safety
• Topography
• Weather

Now, while I think we all need to focus on energy conservation, my view is that the there's more to my neighborhood's "walkability" than the gasoline I can save. Perhaps the web site designers will tweek the algorithms in the future, but until then, at least it's an interesting program providing another piece of the house hunting puzzle.