Blog Northwest Florida

Feeling Stuck in Your Current Home? Would $6500 Loosen the Glue?

Robin Sherman, CRS, Broker Associate Robin@PensacolaForYou.com (Keller Williams) — Sat, 28 Nov 2009 20:07:14 -0600

With all the work the National Association of Realtors is doing to get the word out on the home-buyer tax credit changes, I'm surprised to talk to current homeowners every day who have no idea they qualify for up to $6500 in a tax credit if they purchase a new home before the end of June 2010.

Now there's an attractive incentive to move to a new home! I wish Uncle Sam had been so generous when I moved to my current home back in '04. Now, there is that newer model with the pool and state-of-the-art office that I have been eying down the street! Perhaps I need to be talking with my accountant and lender . . .

So what are the rules for the tax credit? Simple really:

You must have owned your current home for five consecutive years of the past eight years.

You must have a contract on your new home in place by April 30, 2010.

Single tax filers who earn up to $125,000 are eligible for the full tax credit, as are joint filers who earn up to $225,000.

The maximum purchase price to qualify for the tax credit is $8,000.

Think you qualify? Get in touch and we will walk you through the details and get you down the road to a new home before the deadline passes!

Pensacola Beach, A Photo Gallery of What I Love Most!

Robin Sherman, CRS, Broker Associate Robin@PensacolaForYou.com (Keller Williams) — Tue, 29 Sep 2009 16:16:52 -0500

It's been a while since I have posted anything about Pensacola Beach so I think it's time! The summer is behind us, the vacationers - for the most part - have left our tiny strip of white sand beach fronting the Gulf of Mexico. Our real estate sales have slowed as they normally do until the spring when this beautiful island, population roughly 3,000 souls, is once again discovered by those seeking paradise (Or at least warm sandy beaches!). So, I'd like to share, via photos, some of the things I love most about the beach:

I can't think of much that is more fun than watching the surfers catch the waves. Unless maybe it is actually surfing the waves.

Pensacola Beach is the home to a dedicated group of surfers who you can find, regardless of weather, honing their craft in the emerald green waters of the Gulf of Mexico. Of course, our waves aren't big, but what better place to learn to surf and WOW what scenery.

And then there is sailing.

Quietwater Beach on the north side of Santa Rosa Island provides the perfect sheltered harbor for sailing, kayaking, wind surfing, swimming . . . in short, any and all of the "quietwater" water sports.

And there are plenty of restaurants and bars on Quietwater Beach, so you are only steps from good food, drink and music.

This is generally a quiet, family beach. Until, that is, Blue Angel weekend when hundreds of boats crowd the Quietwater Beach area in search of the PERFECT spot to raft up and watch the hometown heros' spectacular show.

And here's "You Know Who" with her big catch for the year, a 16-plus pound red snapper. I can't say you are assured of a big catch like this, but I've been pretty fortunate! Snapper, grouper and amber jack are plentiful off our island.

There are a number of charter boats leaving Pensacola Pass every day for their favorite fishing spots. Hop aboard and see what you catch!

Every Tuesday evening, May through September, you can find an enthusiastic crowds with their lawn chairs, coolers and dancing shoes (or flip flops) taking in the free Bands on the Beach concert at Casino Beach in the heart of Pensacola Beach. From blues to rock to island sounds and even hip hop, the bands play on!

While not technically on Pensacola Beach (Juanas is on Navarre Beach at the east end of Santa Rosa Island), Juanas Pagoda serves the MEANEST sticky buns in Northwest Florida. These buns are gigantic - and truly sticky.

When I'm feeling really frisky and in need of a great breakfast treat I actually ride my bike down the island, through the National Seashore, to Juanas. You can sit out on their deck overlooking the Santa Rosa Sound if you arrive sweaty like I usually do, or you can dine inside in air-conditioned comfort. With the exception of Sunday morning, the line isn't usually too long!

An early morning group ride down Santa Rosa Island through the National Seashore. Suppose they stopped at Juanas for the buns?

What a great venue for riding. J. Earl Bowden Way has just been repaved and has a great bicycle shoulder.

The National seashore is also my favorite place for snorkeling, swimming, beachcombing, birdwatching and on-shore fishing.

Then there are the gorgeous beach homes. From the island's original 1950s concrete block homes to Gulf front mansions, Pensacola Beach boasts a variety of housing styles and options.

While a single family home appeals to many, the amenities found in the many beach condos appeal to others. Me, I like them ALL! As the saying goes, "If you're lucky enough to be on the beach you're lucky enough!"

Colorful beach floats line the shops at Quitewater Beach.

Want a dinosaur float or will a dolphin make you feel like a real sea creature? No problem, you will find them all on the Boardwalk!

There are PLENTY of wonderful seafood restaurants on Pensacola Beach.

Crabs at Casino Beach is just one of my favorites.

Guess what sea creatures they serve most?

And finally, the thing I love absolutely love most about Pensacola Beach:

The Truly Amazing Sunsets! Or as we like to say, "Wine Time."

Eglin Air Force Base Growth Spurs Development in Nearby Navarre, FL

Robin Sherman, CRS, Broker Associate Robin@PensacolaForYou.com (Keller Williams) — Fri, 14 Aug 2009 13:57:22 -0500

Spurred by the Base Realignment and Closure (BRAC) transfer of the U.S. Army's 7th Special Forces to Eglin Air Force Base, and the assignment of the Joint Strike Fighter Training Center to the same base, the Navarre area is beginning to see growth once again. Tapestry Group, a nonprofit foundation which finances construction projects and Fountain Design Build of Navarre have joined forces to create Waterstone at Navarre, a $30 million, four-story, 250 unit apartment complex.

According to a recent article in the Navarre Press the project will be an "upscale" community with 300 to 600 feet of buffering to separate it from existing neighborhoods. The amenities slated for the project include elevators, extensive landscaping, an exercise room, pool and walking path.

Greg Fountain, spokesperson for Fountain Design Build, was quoted as saying the project is designed for tenants with incomes ranging from 80 to 150 percent of adjusted mean income which will qualify it as moderate-income housing. This will allow the developers to use tax-exempt bonds to finance the project. The target group for tenants are military, teachers, firemen and retirees as well as those wanting to downsize.

Tapestry Group has a track record of completing similar projects in the Florida Panhandle. Waterstone Springfield in Panama City opened in February bringing the total invested by Tapestry in Panama City to $55 million.

The inventory for single family residential housing listed in Navarre has dropped from 14.21 months at the end of July 2008, to 11.86 at the end of July 2009.

For more information on communities or individual homes and lots in Navarre, Florida, contact us through www.PensacolaForYou.com

Pensacola Beach Welcomes Bands on the Beach

Robin Sherman, CRS, Broker Associate Robin@PensacolaForYou.com (Keller Williams) — Sat, 02 May 2009 08:14:00 -0500

You know it's almost summer when it's time for the Tuesday evening Pensacola Beach ritual Bands on the Beach!

This Tuesday, May 5, marks the start of the 2009 Bands on the Beach series with Wildwood, a group regionally knows for their rock, blues, Beatles tunes and reggae rhythm. The free concerts are hosted by the Santa Rosa Island Authority at the Gulfside Pavilion on Pensacola Beach and run through September 22.

Put on your flip flops and bring a chair. The concerts are family friendly and usually draw a crowd of 1,000 to 2,000. Picnic baskets and coolers are the order of the day!

For a schedule of this season's Bands on the Beach go to www.PensacolaForYou.com and click on the Events button just below the tiny blue crab. See you at the beach!

Pensacola Area Home Lending and Appraisals - Changes Abound

Robin Sherman, CRS, Broker Associate Robin@PensacolaForYou.com (Keller Williams) — Wed, 22 Apr 2009 15:53:09 -0500

Lots of changes are coming our way in terms of both lending and appraising. Those of us actively working in real estate in the Greater Pensacola Bay area are realizing that the saying "each deal is a new deal" has never been more true. With much tighter underwriting scrutiny on loans and new appraisal guidelines taking effect May 1, it's time to make sure we understand and stay on top of all the changes that are having an impact on our real estate market and our clients. And there are many!

Toward that end Shawn McCorkle with First American Title, DeeDee Rhodes with Gulf Coast Community Bank and Pensacola area Appraiser Dan Helms put on an excellent workshop for Realtors at the Pensacola Association of Realtors downtown Pensacola location this morning. I'd like to share some of the more salient points made by the trio.

Everyone discussed "Time" as a factor that is now more important than ever when writing a contract to purchase real estate.

As DeeDee explained, "We have been used to closing in 30 days, but everything must be verified and verified once again now and that takes time." She gave the example of having a buyer's pay stub not match their annual salary. A number of things; overtime, a bonus, variable work hours, etc., could cause this mismatch, but it must be researched and verified before the transaction can move to closing. DeeDee has worked in both underwriting and as a loan officer and says that we are, "Back to 1980," in terms of loan underwriting criteria and scrutiny.

Dan spoke about the new more stringent appraisal guidelines which add hours of work to the appraisal process. "I'll estimate that the new marketing addendum alone adds an additional two hours of work," Dan said. When you consider that with the downturn in the real estate market there are far fewer appraisers working in the Pensacola market than in the past, and now that their time to complete an appraisal has increased, you can see why the days of a two day appraisal turnaround are over.

Some pointsand changes related to lending and underwriting:

Credit Scores - Most loans will require a minimum of 620 and talk is of going to a 660 minimum.
Private Mortgage Insurance is underwriting and with all the recent payouts they are stringent. Credit score is the determining factor with 10% down.
New Good Faith Estimate forms will be required beginning Jan. 1, 2010. These will require the buyer's signature and the loan will not be able to close for 10 days (3 days if sign in person).
New HUD1 forms that reconcile the Good Faith Estimate with the actual closing costs will be required.
Stated Income Loans will be a thing of the past. RESPA will be requiring verification of income.
Employment will be verified within 48 hours of closing.

Some points and changes related to appraisals:

The Home Valuation Code of Conduct going into effect for appraisers May 1, 2009, requires sales used as comparables to be within one mile of the subject property and to have been sold within the past 90 days. Exceptions require a narrative explanation.
Comparables require bracketing. One property that is similar, one that is above (newer, larger, etc.) and one that is below (older, smaller, etc.).
Foreclosure will carry the same weight as regular sales.
The List to Sale Price average in the area must be considered and included in the valuation.

My big takeaways from today's workshop:

Patience - for both Realtors and our Clients - we're in a brave new real estate world!
Knowledge - Things are changing almost daily. It's important that we stay on top of the changes; talk regularly with our local lenders, appraisers and real estate agents.
Talk with clients - both buyers and sellers - about realistic expectations.

In my own Pensacola area real estate practice I am noticing an abundance of unrealistic expectations on the part of both buyers and sellers today. Too many sellers haven't internalized the reality that the property will only sell for what it will appraise for. We ARE in a declining market. And too many buyers have been pulled into the negative media hype and believe that sellers are giving away properties. As example, the recent caller from Ohio who told me, "I am looking for one of those $350,000 homes that you are selling for $100,000."

Whether it's an individual seller or a lender as seller (foreclosure), I've yet to see any true giveaways. All bargains come at a price. A thorough understanding of the market forces at work that a real estate professional can provide help buyer and seller arrive at a realistic price that meets the lenders' criteria. And our title, appraisal, and lender partners can help us stay abreast of these forces.

Trust as it Relates to the World of Real Estate

Robin Sherman, CRS, Broker Associate Robin@PensacolaForYou.com (Keller Williams) — Wed, 08 Apr 2009 14:06:57 -0500

Trust - Such a small word, but one packed with tremendous meaning.

I just received an e-mail from Stephen Covey's (author - The Speed of Trust) organization which indicated that according to the Edelman Annual Trust Barometer, trust in business in the United States dropped from 58% to 38% since 2008. Given the current state of the economy and the many individual real estate, job loss and other assorted hardship stories I hear daily, I don't find this very surprising.

As a Realtor I have always known that trust is a bedrock value that we must operate from. A home purchase is generally an individual's largest lifetime purchase so the entire experience is often fraught with emotion and trepidation. (My team always strives to make each real estate purchase a joyous event and a win/win for all - a transfer of pride of ownership from one homeowner to another - but that's another story for another day!)

But do all real estate practitioners operate from a core value of trust? I have just completed my "Ethics" continuing education training; a requirement Realtors (members of the National Association of Realtors) must complete every four years. Interestingly enough, our instructor pointed out that only 55 to 60 percent of all real estate practitioners in the state of Florida are members of the National Association of Realtors, so the remaining 40 to 45 percent have no Code of Ethics that they adhere to.

And why is a Code of Ethics important? Well, as I'm sure Stephen Covey would be quick to point out, without a Code of Ethics that is agreed upon we might just find ourselves back in the Wild, Wild, West - particularly in tough economic times when real estate practitioners are trying hard to hold on to their livelihood just like everyone else. Commission sales have the potential to make normally upstanding individuals dance around the issue of black and white vs. gray in a very provocative way!

As I look at my dealings with real estate customers, associates and allied professionals I am more and more aware of the fact that trust is confidence. I recently saw a quote by Dr. Laura Schlessinger that sums it up, "If you want to be an irresistible positive force, combine personal responsibility with compassion and respect for others." This is something that we strive to do in our practice of real estate and I find that it is contagious!

Pensacola Beach, Gulf Breeze, Navarre Beach - Outdoor Activities in Northwest Florida

Robin Sherman, CRS, Broker Associate Robin@PensacolaForYou.com (Keller Williams) — Sun, 08 Mar 2009 18:43:13 -0500

What an absolutely AMAZING place to live! The Florida Department of Transportation opened J. Earl Bowden Way in the Gulf Islands National Seashore to traffic on Friday and - WOW - did I forget just how much I missed this gorgeous stretch of Gulf front road!

The road, which was damaged during Hurricane Ivan in 2004 and again by Huricane Dennis in 2005, once again links Pensacola Beach and Navarre Beach and the drive is nothing short of spectacular. I was out on the road on Saturday taking photos of my husband and a group of his friends who were out for a training bike ride and I just have to share!

The weather was in the mid 70s on Saturday - a perfect day for a long bike ride and the group rode 70 miles. Their loop took them from Gulf Breeze, out Garcon Point to I-10, back to Gulf Breeze and over to Navarre Beach - down the National Seashore to Pensacola Beach and finally back to Gulf Breeze.

So - with the weather forecast to remain sunny and in the 70s through the weekend, who could resist a bike ride Sunday afternoon followed by an 8k run to benefit the Midway (Gulf Breeze) Fire Department and Muscular Dystrophy? Jay and some of his friends participated in the run and I served as back up crew.

Anyone who loves the outdoors will feel at home in Northwest Florida. The temperate climate and abundant access to waterways, parks, trails and outdoor events is truly unparalleled.

Forgot to mention that we actually started the weekend early with a free (almost free - admission is a food donation to Manna Food Bank) concert in downtown Pensacola Thursday evening; "Radio Live", sponsored by the Universtiy of West Florida's WUWF radio station.

The start of the Gulf Breeze Midway Fire Department's 8K Run to benefit the Fire Department and Muscular Distrophy. The well attended run was held Sunday afternoon and the course wound it's way from the Fire Department on Gulf Breeze Parkway through several neighborhoods.

Would you like more information on living in a place that will make you feel every day is a vacation?

Please visit my website, www.PensacolaForYou.com for home searches and information on the Greater Pensacola Bay Area.

Pensacola Area Housing Market Forecast

Robin Sherman, CRS, Broker Associate Robin@PensacolaForYou.com (Keller Williams) — Sat, 17 Jan 2009 12:54:50 -0600

Sales and Currently Active Listings of Single Family Homes, Towwnhomes and Condominiums in Escambia and Santa Rosa Counties for 2008. Source: Pensacola Association of Realtors.

What's going on with the Escambia and Santa Rosa economy and local housing market? Here's the latest from a presentation I attended at the Pensacola Association of Realtors yesterday by experts Dr. Rick Harper, Hass Center for Business Research and Economic Development, Al Muller, Metro Market Trends and local appraiser John Priller:

John Priller- Pensacola area appraisers have just received new, tighter HUD guidelines pertaining to the required number of comparable listings and sales in the last 3, 6, and 9 month periods as well as absorption times. Translation: appraisers have more work to do and we should be looking for fees for appraisals to go up.

John notes that we have watched housing prices in the Greater Pensacola Bay Area fall at a rate of about 1% per month for more than a year and these rates must be taken into account when performing appraisals.

He predicts that we are closer to the bottom for our high end residential properties, but our lower priced properties will continue to fall. He believes we will see our housing prices fall through 2009. Once we reach the bottom of the market we will have a period of "stagnation" before prices begin to rise again.

Dr. Rick Harper- Dr. Harper echos John Priller's predictions. He said that while he had predicted a bottom of the Pensacola Bay Area housing market in late 2009, he is now changing that prediction to early 2010 based on the latest economic news.

While we can consider 6 months of housing inventory (The time it would take to sell all the active listings in the market if no new listings came on.) healthy, we now have 17 months of housing inventory.

Dr Harper pointed to population growth as the driver for the housing industry and said that immigration reform is key for states like Florida who have historically relied on in migration for new growth. While our Pensacola area housing slowdown began prior to the poor nationwide economic news, the slowing economy has certainly hampered any recovery.

Dr. Harper predicts that our commercial sector will continue to soften as "retail follows rooftops."'

There are a few bright spots in the local economy. Our small corner of Florida has always had a more affordable housing market than the rest of the state and our "run up" while significant, was not as extreme as most of the rest of the state. We are also somewhat insulated economically with our military installations. We have seen oil prices and inflation decrease and our trade deficit shrink. Fort Walton Beach will see an estimated 6,000 new jobs created in defense with the BRAC (Base Realignment And Closure) recommendations. Harper predicts that historically low interest rates - as low as 4 to 4.5% - will certainly stimulate housing sales.

Al Muller - Al said that while our prices increased rapidly from 2002 to 2006, the downward trend has been slower. He anticipates this to continue as there is a "Great Hidden Inventory" which is made up of the homes that were on the market but were pulled off when they failed to sell and homes that would have gone on the market if prices had appreciated.

Like John Priller, he anticipates a slow return to appreciation. Al's research is in line with Dr. Harpers as well and he sees declining housing prices for Escambia and Santa Rosa Counties over the next year.

Bottom Line - All the experts agreed that with prices and interest rates low and an ample supply of housing inventory there is a fabulous window of opportunity for purchasing a home over the next year.

For residential listings fitting your customized parameters sent directly to your e-mail inbox on a daily or weekly basis log in to http://robin.pensacolahomesnow.com

Women Boomers and Housing - Choices for a Bright Future

Robin Sherman, CRS, Broker Associate Robin@PensacolaForYou.com (Keller Williams) — Sat, 10 Jan 2009 12:18:55 -0600

As we enter the New Year I have been thinking a lot about financial planning and happiness. Funny how intertwined the two tend to be!

While many of us are rethinking our spending habits amidst the poor economic news and wondering if we really NEED all those things we tend to buy, the fact of the matter is that even if we simplify and downsize there are some financial realities that we just can't escape.

And for women these financial realities can be much different than those faced by our male counterparts. I listened to a great talk by Carol Carlan, a consultant with "Our Collective Mind" at the Pensacola area Women's Council of Realtors yesterday. Some points she made deserve to be shared:

U.S. Life Expectancy - for Women 83, Men 76
3 out of 4 Married Women will be Widowed
3 Common Mistakes Women Make 1) Don't Invest in a 401k 2) Don't Diversify and Take Risks in Investing 3) Underestimate Health Care Costs
Carol's talk reminded me of a recent study which was conducted by the Harvard Generations Policy Program. The findings indicated that while the approximately 40 million baby boomer women are the largest generation to reach their 40s, their financial security may not be assured unless they make wise housing choices.

The study showed that boomer women (born from 1946 to 1964) spend more, acquire more debt, and are less likely to have traditional pensions, spousal benefits or retiree health coverage than other cohort groups. For these women - interestingly enough, the majority of those I saw sitting around me at the Pensacola Women's Council of Realtors group - housing is a key to their future security and happiness.

The Harvard study says unequivocally that women of the baby boom generation who own their own homes (either alone or with a spouse) will be at an economic advantage.

Over the past two years I have watched our hot housing market cool, our economy slow down and potential buyers wring their hands as they worried over finding the bottom of the local housing market. Both Carol Carlan's talk and my review of the Harvard study reminded me just how important it is to review with potential buyers the decision tree for renting vs. buying. Long term financial goals and security always have to be part of the equation and in most cases, buying wins out.

As we enter a new year and take stock of where we are and where we are going, whether we are female boomers or not, housing should be a big part of our equation. With the current attractive housing prices in the Pensacola area, low interest rates and the generous seller concessions we are seeing, NOW is a great time to explore whether buying is right for you. If you agree, don't wait . . . call your professional Realtor!

Year	Annual Sales	Avg List Price	Avg Sales Price	% Diff Sell/List	Avg Days on Market	Current Inventory	Months Inventory
2006	6888	$216,269	$207,873	96.12%	108	6,690	11.92
2007	5535	$217,360	$207,787	95.60%	131.1	7,154	15.75
2008	4285	$208,118	$196,029	94.19%	153.3	6,502	18.75

The chart above provides an overview of the Escambia and Santa Rosa County single family home, condominium and townhome sales from 2006 to 2008. You will note that sale prices are down while selling days on the market have increased significantly. Firgures were taken from the Pensacola Association of Realtors Multiple Listing Service.

Robin Sherman, Robin@PensacolaForYou.com

Mortgage Squeeze - Not as Tight as Some May Think!

Robin Sherman, CRS, Broker Associate Robin@PensacolaForYou.com (Keller Williams) — Tue, 06 Jan 2009 16:02:03 -0600

The National Association of Realtors (NAR) is working hard to get the word out - Mortgage Money is Available!

In a press release issued today NAR urged the public to disregard much of the "misinformation" floating around in the media and on blogs related to the tight home mortgage market. NAR shares the following facts:

1) An individual may be required to put down 20% based on that person's financial situation, but that is not an across-the-board requirement for all borrowers.

2) A borrower who puts down less than 20% is required to obtain mortgage insurance.

3) Even in a declining market a borrower is required to make at least a 5 or 10 percent down payment.

4) FHA requires a 3.5% down payment by borrowers, so long as they meet a 31% housing cost-to-income ratio. In other words, anyone who stays within their budget and who can afford a 3.5% down payment (even with family help) can become a homeowner.

It is quick and simple to determine your required down payment. A call to a reputable lender and a few minutes of your time will provide you with the information you need. I know that many people are afraid of having their credit pulled, having heard that this will impact their credit score, but it isn't necessary to have your credit pulled to get an idea of your downpayment requirements and an estimate of loan costs and monthly payment schedules. Again, any reputable lender will be able to help provide this information.

We will be happy to provide you with lender information for the Northwest Florida real estate market. Our primary market area is from Fort Walton Beach through Pensacola, Escambia, Santa Rosa and Okaloosa counties.

Pensacola Bay Area Economy - A Balanced Look, Please!

Robin Sherman, CRS, Broker Associate Robin@PensacolaForYou.com (Keller Williams) — Sun, 04 Jan 2009 21:01:40 -0600

Unemployment, slow retail sales, falling home prices, and here we all go . . . circling the drain once again. Amid all this negative news isn't there a bright spot for Pensacola? Well, of course there is - or are- in reality (and realty) there are MANY positive things going on in Escambia and Santa Rosa counties:

#1 - Falling mortgage interest rates - We actually saw rates hit 4.5% in Pensacola in mid December and many predict we will see rates this low once again. Those of us working in real estate and related fields saw a rash of activity in December as buyers scrambled to take advantage of the low rates and attractive home prices.

#2 - South Santa Rosa County - Surveying is underway on the 100-plus acres owned by Pensacola Junior College in Gulf Breeze (Midway) for construction of a new campus within the next two years.

#3 - Escambia County - Several large capital projects are underway - or in the final planning stages. Today's Pensacola News Journal ran a story "Building Up 2009"detailing the following projects; the $320 million wastewater treatment plant, the $35 million airport expansion and completion of the adjacent $16 million parking garage, Navy Federal Credit Union's $54 million building 3 on their Beulah campus and the much anticipated $70 million Community Maritime Park.

#4 - Regionally - There is still the strong likelihood that the $40 billion KC-45 tanker project will find a home in nearby Mobile, AL, and the Chamber's economic development arm continues to promote the I-10 Wired initiative that I wrote about in an earlier post.

So let's pay heed to the difficult issues our economy faces, but let's also not lose sight of the great things on our horizon and how they will impact our local economy today and well into the future.

Pensacola Bay Area Housing and Economy - January 2009

Robin Sherman, CRS, Broker Associate Robin@PensacolaForYou.com (Keller Williams) — Thu, 01 Jan 2009 20:05:43 -0600

There was a great article in last Sunday's Pensacola News Journal titled "Meltdown to Rebound - When will area economy turn around?" The News Journal brought together a panel of five Pensacola area economic experts for their read on what our future will bring.

One of the experts interviewed for the Pensacola News Journal story, Al Muller from Metro Market Trends was featured in a blog I wrote back in July on the same subject - Real Estate Trends, What's the Real Real Estate Story

Interestingly, several members of the panel - including Al - pointed out that the "rapidity of the economy's meltdown" was the most surprising thing about it. Indeed, when I heard Al's presentation back in July he was encouraged by some bright spots in the housing market which, although small, were pointing to a slowdown in the rate of decline. But that was before Wall Street's credit crash hit the news.

Muller had predicted that we might see the Greater Pensacola Bay area (Pensacola, Milton, Gulf Breeze, Pace, Escambia and Santa Rosa Counties) housing market start to get back on track to our traditional 4.5 to 5% annual appreciation rate by late '09 or early 2010. According to his comments in the Pensacola News Journal article he feels it will now take a major catalyst like federal tax incentives coupled with attractive interest rates to kickstart the local housing market. "Bottom line," Muller said, "as long as we're in a recession the real estate market won't get better."

So, what does this mean for the average person looking to buy or sell real estate in the Greater Pensacola Bay Area?

Number 1 - For Buyers - Today is a great day to buy! Certainly credit is tight and a good credit score is important. However, the current interest rates are incredibly attractive and there are some great loan products and incentives - particularly for first time home buyers - in the market now. Let's hope congress is listening to people like Al Muller and we see some significant tax incentives for home buyers in the new year. Who wouldn't be excited about a 20% tax credit for buying a home? Write your representatives!

Number 1 - For Sellers - Listen to a professional real estate agent and PRICE YOUR HOUSE FOR THE MARKET. Many of today's potential sellers took advantage of the appreciating home prices from 2003 to 2006 and took out equity loans on their homes. As prices have declined this has made it difficult to sell as they are essentially "upside down" in their home.

The reality is that homes must appraise for buyers to obtain the loans to purchase them. As a seller, analyze what you really need out of your home sale to make it work for you. In 2008 I had a seller who had to transfer with his job and was in this "upside down" situation. Once we looked at the cost savings he had for housing in his new home town things didn't look quite so bleak. We priced his home below the neighborhood comparables and sold it quickly. Yes, he came to closing with cash - never fun as a seller - but he purchased on the other end of his move for much less than he had anticipated and got a very favorable interest rate which allowed him to actually buy more house than he had expected.

Stay tuned to my blog as I will continue to provide updates on local housing information. As always, I will be happy to answer any real estate questions you might have. If I don't have the answers, I will be happy to track down an expert who does!

New Year and a New Pensacola Area Home

Robin Sherman, CRS, Broker Associate Robin@PensacolaForYou.com (Keller Williams) — Thu, 01 Jan 2009 11:50:59 -0600

2008 was a BIG YEAR for the Robin Sherman Realtors team. I just checked our stats and we finished the year as the #2 Coldwell Banker team in the STATE of Florida in terms of our sales volume. WOW . . . even if I do say so myself!!!! (To borrow one of my competitors slogans - just this once Sandy - I could say "I'm not bragging, just applying for a job.")

"Girls Just Wanna Have Fun" - Robin, Harriett and Ruthie join Keller Williams

The beginning of a new year is always a good time to make a new start. After seven very productive and successful years at Coldwell Banker in the Greater Pensacola Bay Area (Coldwell Banker JME Realty and later Coldwell Banker United Realtors) we have moved our team to Keller Williams Realty. Our new offices are located in Gulf Breeze, not too far from our previous location on Pensacola Beach.

Our clients will receive the same caring, personal service that has helped us grow our business so rapidly over the past seven years. Our philosophy of having fun while we work . . . and making sure our clients do too . . . won't change! The move allows us to expand our team, adding local area specialists and providing our services throughout more of Escambia and Santa Rosa counties. We are also redoubling our efforts to keep our clients and blog subscribers up to date on the rapidly changing real estate market.

We'd love to show you why over 85% of our business is "repeat and referral." Never hesitate to call or e-mail us with your real estate questions!

Robin Sherman Realtors - Now with Keller Williams

Robin@PensacolaForYou.com

Pensacola Beach Photos

Robin Sherman, CRS, Broker Associate Robin@PensacolaForYou.com (Keller Williams) — Mon, 10 Nov 2008 12:25:08 -0600

Every now and then you just want to share some photos.This is one of those Nows!

As I sit in my real estate office and look out at the gorgeous Gulf of Mexico in that beautiful fall light - emerald green waves lapping up against the sugar white sands I'M DAZZLED! And I get to see this every day! I can just imagine how it must look to those who are currently bundled up against the cold.

So here are some recent photos:

An October camp out on Pensacola Beach. We played frisbee, water skiied and hunted shells all afternoon. Once the sun went down we roasted marshmellows and told spooky stories.

What a treat!

Happy Campers arrived by Boat

Maggie and her marshmellows!

The sailboats line up on Quietwater Beach

Colorful Beach and Pool Floats line the Streets!

Today there are 368 homes, townhomes and condos for sale on Pensacola Beach. Prices range from $165,000 to over $2 million. I'll be happy to help you find just the right property to start making your beach memories!

To read related blog: Ugly Market . . . Best Time to Buy Click Here

For related blog: Jubilee . . . Remembering Old Florida Click Here

Pensacola Beach Real Estate Market Statistics

Robin Sherman, CRS, Broker Associate Robin@PensacolaForYou.com (Keller Williams) — Wed, 05 Nov 2008 16:51:06 -0600

Everybody LOVES the beach! And when we are talking about Pensacola Beach, what's not to love?

We are blessed with sugar white sands and emerald green waters to rival anything you will find in the Bahamas, we are a "low traffic" area and we have - among other things - the Blue Angels!

As a Realtor whose office is located on the beach, I spend a good amount of time looking out my office window . . . AND selling beach properties. We have seen a lot of changes in our beach market over that last few years.

We watched our prices run up dramatically from 2002 to 2006, and we have watched them move down - albiet not as quickly as they moved up - since 2006.

While we are on track to sell about the same number of beach properties as were sold in '06 and '07, our average sales price has come down over 10% from the '06 average sales price.

So what's really happening with our real estate market? Let's take a look at the numbers:

For an article on the Emerald Dolphin on Pensacola Beach Click Here.

For more specifics on the Pensacola Beach real estate market, give me a call at 850-516-8185. Or better yet, kick your shoes off and come visit me at the beach!

Pensacola Beach Properties and Flood Insurance

Robin Sherman, CRS, Broker Associate Robin@PensacolaForYou.com (Keller Williams) — Thu, 30 Oct 2008 13:34:00 -0500

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

Pensacola Realtors Making Strides Against Breast Cancer

Robin Sherman, CRS, Broker Associate Robin@PensacolaForYou.com (Keller Williams) — Mon, 27 Oct 2008 15:38:00 -0500

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.

Sell Your Home Fast Even When the Market is Slow

Robin Sherman, CRS, Broker Associate Robin@PensacolaForYou.com (Keller Williams) — Fri, 24 Oct 2008 14:49:43 -0500

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

Robin Sherman Realtors - Top Ten Coldwell Banker Real Estate Teams in Florida

Robin Sherman, CRS, Broker Associate Robin@PensacolaForYou.com (Keller Williams) — Wed, 22 Oct 2008 13:46:07 -0500

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!

Pensacola Housing Affordability and Perspective

Robin Sherman, CRS, Broker Associate Robin@PensacolaForYou.com (Keller Williams) — Tue, 21 Oct 2008 15:29:46 -0500

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.

Lower Gas Prices Stimulate Housing Market

Robin Sherman, CRS, Broker Associate Robin@PensacolaForYou.com (Keller Williams) — Wed, 15 Oct 2008 13:41:38 -0500

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 Waterfront - Opportunities Abound

Robin Sherman, CRS, Broker Associate Robin@PensacolaForYou.com (Keller Williams) — Sun, 12 Oct 2008 16:23:24 -0500

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.

Job Growth Kudos for Pensacola, FL

Robin Sherman, CRS, Broker Associate Robin@PensacolaForYou.com (Keller Williams) — Sun, 28 Sep 2008 18:36:35 -0500

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!

Pensacola Beach Considers Core Business District Improvements

Robin Sherman, CRS, Broker Associate Robin@PensacolaForYou.com (Keller Williams) — Tue, 23 Sep 2008 12:59:21 -0500

Pensacola Beach could have a whole new look if plans put forward by the Santa Rosa Island Authority this week move forward. The proposal will be presented at a public meeting to be held at the Island Authority offices on Pensacola Beach on Wednesday evening.

The improvements proposed are for the core business area of the beach and include over 240,000 square feet of retail space, more than 2,000 parking spaces, a new Visitor's Center and Island Authority offices and a walkover bridge for Via DeLuna. The parking spaces would be housed in three separate parking decks in a central area.

Construction cost estimates as well projected tax revenues from the project will be presented at the public meeting. Drawings of the proposed improvements by architect Carter Quina will also be on display Wednesday evening.

If the plans move forward the Island Authority's next step will be to work to find funding sources for the proposal.

Interested in attending the public meeting? It will be held at 5pm Wednesday in the Santa Rosa Island Authority offices at 1 Via DeLuna Drive on Pensacola Beach.

Pensacola Real Estate Trends - What's the Real Real Estate Story?

Robin Sherman, CRS, Broker Associate Robin@PensacolaForYou.com (Keller Williams) — Mon, 21 Jul 2008 10:06:47 -0500

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