Pensacola Real Estate Headlines Don't Tell the Entire Story . . . Today's Pensacola News Journal's feature story on the local real estate market was headlined "Area Home Sales Continue to Slide." But within the same newspaper another real estate article was headlined ""Prices Remain Higher Despite More Competition, Fewer Buyers."

Both of these headlines ring true, but there are back stories (Aren't there always?). The first article points out that we are seeing significantly fewer sales; 599 in May of '08 vs. 870 in May of '07, but doesn't really explore the fact that actual prices aren't declining by much.  The second article hits this, pointing out that our prices aren't coming down in relation to the declining number of sales. Sellers (potential sellers!) are clinging to their higher prices. And, a quick look at the large number of withdrawn and expired listings tells the tale of many potential sellers simply choosing to hold on to their Pensacola area properties.

Here's the thing to understand - to borrow from the National Association of Realtors - "all real estate is local." And by local I mean we really have to drill down to the local real estate sub markets. I just posted a Pensacola Beach real estate market update on my Pensacola Undressed blog that shows the total number of sales on the beach, as well as sales prices, increasing year over year. Accurate? Absolutely. But is there more to the story than the numbers tell? Yes. Several very expensive units ($2m +) in a Gulf front pre-construction property closed early this year skewing the statistics.  

Of course, like most of the rest of the country the Greater Pensacola Bay Area real estate market has seen some significant changes. Our prices were rising rapidly prior to Hurricane Ivan, and then the loss of inventory in the wake of the storm meant that homes went for full price or more for a period of time. As the market started settling back in the economy, on a national level, became a growing concern.

So here we sit. Too much inventory at prices that don't tempt the market.

But, are there opportunities? You'd better believe it. Not all sellers want to be sellers forever. Some people need to move on and are pricing their homes for the market and they are selling. It's all about truly knowing the market and jumping when the appropriate property comes available at market price. So, forget the Pensacola Real Estate Headlines, They Don't Tell the Entire Story.