What's Happening in the Pensacola Florida Housing Market?
In a word it's somewhat tenuous.
Seven years have passed since the start of the worst housing market decline ever.
Recovery now struggles against disruptions in the overall economy.
In the first quarter of 2012 it was reported that 30% of homes nationwide were underwater.
Now some of those properties have surfaced above negative equity. Values increased during 2013, attributted in part to low inventories. Homeownership is affordable -- more so certainly than it was 25 years ago. In 1989 a loaf of bread was 67 cents -- gasoline has more than doubled since 1989 -- and yet a monthly payment on the average house is actually LESS than it was in 1989!
What's happening in the Pensacola Florida housing market and nationwide is many of today's homebuyers are recovering from their own personal setbacks, including bouts of unemployment. They now face rising interest rates and stricter qualifications for mortgages. A 1% rise in interest rates means a 10% increase in the monthly house payment.
Economic forecaster and researcher, Jean Folger states:
As the housing market continues its recovery, we can expect a few things to happen in 2014:
- House prices will rise at a slower rate than 2013. Look for smaller, more sustainable gains in 2014.
- As home prices rise, more homeowners will emerge from being underwater, putting them in the position to finally buy and sell properties.
- Mortgages will be dominated by purchases rather than refinance activity, for the first time since 2000.
- Higher mortgage rates will slow home sales and price gains to more sustainable levels.
- Low inventories will be helped by an increase in new construction and a decrease in investor purchasing.
The recovery will continue to be driven by a combination of elements including home inventories (supply), foreclosure rates, mortgage rates, availability of credit, institutional investing and factors within the broader economy.
If you are planning to sell your current home -- now may be the best time to do so -- especially if you will be buying another home.
What's Happening in the Pensacola Florida Housing Market?
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