THE PENSACOLA REAL ESTATE MARKET UPDATE

Last week the fixed rate average was 7.06%.  This week the average is 6.61%.  The average interest rate was lower because the inflation rate for October was less than anticipated.  Nobody knows whether this is a temporary change in the trend of inflation.  Mortgage buyer Freddie Mac reported Thursday that the average on the key 30-year rate fell to 6.61% from 7.08% last week. A year ago the average rate was 3.1%.

The mortgage rates do not necessarily mirror the Fed's Fund Rate.  Mortgage rates tend to track the 10-Year Treasury Note.  There are a variety of factors that influence the yield, such as investor expectations of the economy, expected inflation, and the global demand for US Treasury notes.

As you can see, the rate increases along with the cost of living have created a threefold increase in the number of houses for sale.   This has led to fewer new sales as revealed by the next graph.

Can a multiple-offer situation still occur in the Pensacola housing market?  Yes, if the house is priced better, looks better, and location is better, etc. (a combination of multiple factors) than the competition.  

The average number of days for sale of those houses still for sale is 68 days in Escambia county and 76 days in Santa Rosa county Florida.  For the houses that are under contract the average number of days, it took to get a contract in Escambia county Florida is 40, and 44 in Santa Rosa county.

A look at the affordability of principal and interest payments.

We have also seen in our Pensacola Florida real estate market an upward trend of expired and canceled listing contracts since March of this year.

This means a house is overpriced.  The price does not match the condition, location, curb appeal, deferred maintenance, access for showings, etc.  Perhaps started overpriced but then was too slow to adjust the price aggressively.  You cannot take baby steps in this market.  Like flying to a runway, if don't adjust your altitude ahead of the runway then you will never land.

A look back at the last six months in the Pensacola housing market for single-family homes in both Escambia and Santa Rosa counties Florida.  The average list price, average sale price, days on market, sale price to list price rate, and inventory level are six-month rolling averages.

Below is a look at the number of closed sales of single-family detached houses as reported by the Pensacola Association of Realtors.

Below is great information from Xtreme Plumbing and Septic

-Don’t use excessive amounts of any household chemicals. You can use normal amounts of household detergents, bleaches, drain cleaners, and other household chemicals without stopping the bacterial action in the septic tank. But, for example, don’t dump cleaning water for latex paintbrushes and cans into the house sewer.

-Don’t deposit coffee grounds, cooking fats, wet-strength towels (paper towels that don’t dissolve easily, like the heavy-duty kind), disposable diapers, facial tissues, cigarette butts, and other non-decomposable materials into the house sewer. These materials won’t decompose, will fill the septic tank, and will plug the system.

-Use a high-quality toilet tissue that breaks up easily when wet. One way to find out if your toilet paper fits this description is to put a handful of toilet tissue in a fruit jar half-full of water. Shake the jar, and if the tissue breaks up easily, the product is suitable for the septic tank.

-Avoid dumping grease down the drain. It may plug sewer pipes or build up in the septic tank and plug the inlet. Keep a separate container for waste grease and throw it out with the garbage.

Hey, thank you for your time.

If you have any questions about our real estate market or know someone that could use my help call me at (850) 616-6377 or (850) 554-9543.

Jack Lara, Broker-Associate

Serving the Pensacola Area

Joaquin Alberto Lara, LLC