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April 27th, 2019 by Marco Santarelli
Pensacola FL Real Estate Market 2019 Statistics
If you are looking at buying a house in Pensacola as a potential investment opportunity, you must read till the end. Home prices in the Pensacola real estate market are expected to rise by 7.1 % by the end of 2019. Pensacola, Florida is about as far west as you can be and still be in Florida. Pensacola is a short distance to the border with Alabama. Except for when it is threatened by hurricanes, which is rare, few people even hear about the city. Yet this overlooked real estate market offers an excellent opportunity to real estate investors.
At first glance, the Pensacola housing market doesn’t seem worth it. It is right on the Gulf of Mexico, but the city of Pensacola only has fifty thousand residents, a decline from the nearly sixty thousand who lived there in 2000. However, the Pensacola housing market is much bigger than this – the Pensacola metropolitan area is home to almost half a million people. Yet size isn’t reason enough to invest here. Let’s take a close look at the Pensacola housing market trends and forecasts for 2019 & 2020 and find out why you should invest in this growing market in the state of Florida.
Pensacola Real Estate Market Forecasts 2019 & 2020
The median home value in Pensacola is $145,100 on Zillow.com. Pensacola home values have gone up 10.9% over the past year and Zillow’s Pensacola real estate market prediction is that the prices will rise 7.1% in 2020. The median list price per square foot in Pensacola is $123, which is lower than the Pensacola-Ferry Pass-Brent Metro average of $126. The median price of homes currently listed in Pensacola is $229,953 while the median price of homes that sold is $164,500. The median rent price in Pensacola is $1,075, which is lower than the Pensacola-Ferry Pass-Brent Metro median of $1,150.
According to LittleBigHomes.com, the Pensacola real estate market forecast for the 12 months ending with the 3rd Quarter of 2019 is positive. Their accuracy of the Pensacola real estate market trend prediction is 82%. Accordingly, they estimate that the probability for rising home prices in Pensacola is 82% during this period. If this Housing Market Forecast is correct, home prices will be higher in the 3rd Quarter of 2019 than they were in the 3rd Quarter of 2018.
Pensacola Housing Market Forecast 2019 – 2021
The Pensacola housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Pensacola housing market trend prediction is 79%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Pensacola is 79% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Pensacola Real Estate Market Forecast.
Pensacola Real Estate Market Trends
Pensacola real estate market trends indicate an increase of $7,250 (5%) in median home sales and a 0% rise in median rent per month over the past year. The average price per square foot for this same period rose to $105, up from $98. Trulia has 1,161 resale and new homes for sale in Pensacola, FL, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median sales price for homes in Pensacola for Jan 18 to Apr 17 was $157,250 based on 912 home sales. Average price per square foot for Pensacola was $105, an increase of 7% compared to the same period last year. The median rent per month for apartments in Pensacola for Mar 23 to Apr 23 was $1,145.
Pensacola Housing Market Statistics
There are 1,724 homes for sale in Pensacola, ranging from $5K to $7.5M on Realtor.com. 131 of which were newly listed within the last week. Additionally, there are 237 Pensacola rental properties, with a range of $500 to $4K per month. In February 2019 the housing market in Pensacola, FL was a buyer’s market, which means there were roughly more active homes for sale than there were buyers.
In February 2019, the median list price of homes in Pensacola, FL was $179.9K, trending up 5.9% year-over-year. The median listing price per square foot was $108. The median sale price was $160K. Homes in Pensacola, FL sold for 0.96% below asking price on average in February 2019. On average, homes in Pensacola, FL sell after 97 days on the market. The trend for median days on market in Pensacola, FL is flat since last month, and flat since last year.
As per the data given on Movoto.com, the median list price in Pensacola is $$219,950. The median list price in Pensacola went down 8% from March to April. Pensacola’s home resale inventories is 26, which increased 13 percent since March 2019. The median list price per square foot in Pensacola is $113. March 2019 was $134. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in April.
Pensacola Single Family And Multi-Family Homes
Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate. Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units
As per the data from the real estate company called Neigborhoodscout.com, the median house price in Pensacola is $208,345, which indicates that home prices in Pensacola are well above the national average for all cities and towns. Single family detached homes are the single most common housing type in Pensacola, accounting for 69.86% of the city’s housing units. Other types of housing that are prevalent in Pensacola include large apartment complexes or high rise apartments ( 18.37%), duplexes, homes converted to apartments or other small apartment buildings ( 9.26%), and a few row houses and other attached homes ( 2.10%).
The most prevalent building size and type in Pensacola are three and four bedroom dwellings, chiefly found in single-family detached homes. The city has a mixture of owners and renters, with 58.17% owning and 41.83% renting. Currently, there are 1,317 single family homes for sale in Pensacola, FL on Zillow. These include upcoming potential listings such as properties which are in the stage of Pre-Foreclosure. Additionally, there are 175 single family homes for rent in Pensacola, FL.
Pensacola, FL Foreclosures And Bank Owned Homes
The percent of delinquent mortgages in Pensacola is 1.4%, which is higher than the national value of 1.1%, according to Zillow. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Pensacola homeowners underwater on their mortgage is 11.4%, which is higher than Pensacola-Ferry Pass-Brent Metro at 9.0%.
There are currently 684 properties in Pensacola, FL that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 1,364. In March 2019, the number of properties that received a foreclosure filing in Pensacola, FL was 32% higher than the previous month and 19% higher than the same time last year.
Home sales for February 2019 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home in Pensacola was $0. The median sales price of a foreclosure home in Pensacola was $0, or 0% higher than non-distressed home sales.
Pensacola Home Prices And Real Estate Appreciation
Pensacola real estate appreciated 38.45% over the last ten years, which is an average annual home appreciation rate of 3.31%, putting Pensacola in the top 20% nationally for real estate appreciation. Pensacola real estate appreciation rates are so strong in Pensacola that despite a nationwide downturn in the housing market, Pensacola real estate has continued to appreciate in value faster than most communities.
Looking at just the latest twelve months, Pensacola real estate appreciation rates continue to be some of the highest in America, at 10.02%, which is higher than appreciation rates in 92.27% of the cities and towns in the nation. Based on the last twelve months, short-term real estate investors have found good fortune in Pensacola. Pensacola real estate appreciation rates in the latest quarter were at 2.16%, which equates to an annual appreciation rate of 8.94%.
The above statistics on real estate appreciation in Pensacola were taken from NeighborhoodScout.com. You can visit their page for more information. Relative to Florida, their data shows that Pensacola’s latest annual real estate appreciation rate is higher than 60% of the other cities and towns in Florida.
10 Best Neighborhoods In Pensacola For Real Estate Investment
There are 109 schools in Pensacola, FL. There are 39 elementary schools, 19 middle schools, 16 high schools and 35 private & charter schools. There are 191 neighborhoods in Pensacola. Some of the best neighborhoods in or around Pensacola, Florida are Gulf Beach, Bellview and Ensley.
Gulf Beach has a median listing price of $527K, making it the most expensive neighborhood. Montclair is the most affordable neighborhood in Pensacola, with a median listing price of $79.7K. Here are the 10 best neighborhoods in Pensacola to invest in real estate because they have the highest real estate appreciation rates (List by Neigborhoodscout.com).
Should You Invest in The Pensacola Real Estate in 2019?
Investing in real estate is touted as a great way to become wealthy. Is Pensacola rental property good for investment? Planning to invest in the Pensacola real estate market? Many real estate investors have asked themselves if buying a property in Pensacola is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Pensacola housing market 2019 forecast for answers on why to put resources into this sizzling market. The home prices in the Pensacola housing market will be on an upswing all through 2019. The Pensacola home prices are expected to rise by 7.1% in 2020. Here are the top 10 reasons to invest in the Pensacola real estate in 2019.
1. The Large Military Market
Pensacola is home to a large US Naval Air station. If you haven’t heard of it, you’ve probably heard of the Blue Angels that are based there. Like any military base, it generates significant demand for Pensacola rental properties, since it isn’t advisable for service members to buy homes when they’re moved around so often.
2. The Student Market
The University of West Florida has its flagship campus just north of downtown Pensacola. It is the third largest campus in the Florida State University System in terms of area, and there are around thirteen thousand students. However, it isn’t the only college in the area.
Pensacola State College is much larger with roughly 36,000 students. It is notable for how many come here to attend the only medical school in the region. Pensacola Christian College is home to another five thousand students. This creates steady demand for Pensacola rental properties near the campus.
3. The Relatively Affordable Real Estate
Pensacola is often overlooked in favor of hotter markets like Orlando and Miami. This explains why the median piece of real estate cost around $160,000, taking both condos and single family homes into account. This is roughly a quarter less than the median home price for the state of Florida.
Single family homes in the Pensacola housing market cost around $220,000, in line with the national average. Townhomes and duplexes cost around half a million, but that means the price per unit is closer to $120,000 apiece. If you’re buying multi-family housing, then you’re paying about $50,000 for each of the Pensacola rental properties.
4. The Certain Appreciation of Properties
The Pensacola housing market is nearly guaranteed to steadily appreciate over the coming years. Cities on the coast can’t expand out onto the water. In the case of Pensacola, the open land that remains around the city is off-limits to development as natural preserves.
While demand is slowly increasing, there’s not enough demand to see a spate of new construction in the existing suburbs or major redevelopment downtown. This has led to six to seven percent appreciation in 2017 and 2018, and home prices are expected to rise that much in 2019, as well.
5. The Good Return on the Investment
The median rent for an apartment in Pensacola was about a thousand dollars a month. A one bedroom can be rented out for around $900 a month, while two bedrooms hit the thousand dollar mark. You can charge much more for detached Pensacola rental properties. Nor is new inventory keeping up with demand. This explains why rents increased 11% for one bedroom apartments and 13% for two bedroom apartments.
6. The Ideal Economy
The Pensacola real estate market isn’t hot, but that’s not what savvy investors are looking for. The Pensacola housing market is a stable market with steady long-term growth. Unemployment is less than four percent. The military and educational sectors are strong presences in the area but the local economy won’t be shattered if a major school or the military base closes.
The economy is diversified; many work in manufacturing, healthcare and tourism. Because it is the biggest city in the area, it is home to the biggest hospitals and VA facilities in the region.
7. The Low Tax Bill
Florida doesn’t have a state income tax. It also stands out for its low property tax rate, especially low for a coastal town. Factor in their low home values, and this is where you’ll find the lowest overall ownership costs for beachfront properties to rent out to tourists or students. The average property tax bill came in at around $1200 a year according to a Smart Asset study.
8. The Tourism Market
The Pensacola real estate market is affordable to locals, tourists and investors alike because it isn’t being bid up as if it were the next Silicon Valley or the Orlando neighborhoods near Disneyworld. Ironically, the relatively lukewarm tourist market means you aren’t competing against city blocks lined with luxury hotels or all-inclusive resorts, either.
This gives the average real estate investor a decent chance at earning good money in the Pensacola real estate market. And Pensacola tourism is seeing steady growth, so you’ll be able to increase the rental rates charged to tourists over time. They’ll consider it a deal, since the city offers equally warm sandy beaches and decent tourist attractions without the crowds of “hotter” tourist destinations.
9. The Local Government Tolerance of AirBnB
People are increasingly using sites like AirBnB to rent out their homes, whether spare bedrooms, vacation homes or their whole house when on vacation. In some jurisdictions, this occurs though it is nearly illegal. In other places, the local government is encouraging it so that residents can afford to pay their mortgage and to increase the options for tourists who want to visit the city.
Pensacola has come to an agreement with short term rental sites like AirBnB so that the site collects hotel taxes while property owners remain anonymous. This gives owners of Pensacola rental properties an easy way to rent out an empty property to tourists while they hunt for a long-term tenant.
It also simplifies the process of leasing beach properties in the Pensacola real estate market out to tourists. Pensacola officials are pushing those who want to rent out properties as short term rentals to register with the county.
10. The Snowbirds
Florida’s sub-tropical climate has made it a popular retirement destination for decades. The Pensacola housing market is bolstered by the seasonal influx of retirees over the winter. They tend to come for the winter and stay for several months. This is a boon to real estate investors who otherwise may have empty Pensacola rental properties over the winter. Snowbirds enjoy the shopping district, museums, fishing and golf courses.
Pensacola Real Estate Investment
Maybe you have done a bit of real estate investing in Pensacola, FL but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. If you are a home buyer or real estate investor, Pensacola real estate investment definitely has a track record of generating one of the best long term returns in the U.S. through the last ten years. If you invest wisely in Pensacola real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments, you should focus on markets with relatively high population and employment growth. Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Pensacola, FL. The Pensacola real estate investment can be as warm as the water along its beautiful beaches. The Pensacola market is inviting to locals and tourists alike, generating a steady stream of revenue. Investors are making a mistake if they pass over this market in favor of overheated markets like Miami or Orlando.
Buying an investment property is different from buying an owner-occupied home. Investment properties are designed to make money as rentals, which means you must look at it solely as an income producing entity just like any other business.
Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor is your ability to find great real estate investments.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
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Best Places In Florida To Invest In Real Estate
You can also invest in another hot market in Ocala, Florida. Ocala is an affordable real estate market for investors who can still reap a decent return on investment. The area has recovered from the Great Recession, and a number of factors will insulate it from a future downturn. The Ocala housing market is buoyed by several nearly recession proof industries.
It is quite affordable for investors compared to the rest of Florida markets like Tampa where the median home value is $221,500. The median home price in Ocala in 2018 was around $150,000. You can buy several homes in the Ocala FL real estate market for the price you would of one mid-market condo in Miami real estate market.
Another market that we suggest is the housing market in Lakeland, Florida. The Lakeland housing market presents the perfect balance of currently affordable real estate for buyers and future growth. We can expect the population of the area to grow rapidly, and the renting population will grow even faster. The time to buy real estate in Lakeland is now.
While the Lakeland FL real estate market is cheaper than Orlando and Tampa, it is not a good overall value given the lower average wages of its residents. That explains why U.S. News and World Report gave the city an index score of 5.5 out of ten. This is due to the average resident earning around $23,000 a year, several thousand less than the U.S. average. Median household incomes are no better.
We also recommend Tampa FL real estate market for turnkey rental property investing. The real estate in Tampa Florida has been estimated to grow rapidly during 2019. Investors are recommended to buy properties now and hold on to them until good price appreciation for maximum return on investment. The Tampa housing market has been seeing constant development for the last two years, a trend that does not seem to be stopping any time soon.
Tampa has the headquarters of four Fortune 500 companies which makes it a moderately attractive city for work and economic growth. In addition to this, many entrepreneurs and small businesses are also making way to Tampa for search of better prospects and lesser expenses for running their start-ups.
Acquiring residential spaces is one of earliest priorities for such professionals when they move here. Tampa, FL has a very diverse economy with financial services, STEM, health care, research, education, tourism, beaches, and military bases all making significant contributions to jobs and growth. These all factors make Tampa housing market a hot destination for real estate investors in 2019.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here.
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*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
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