Real estate has always been unpredictable, but the last few years have really felt like a rollercoaster ride all over the United States. The market is up; it’s down, and before we know it, housing prices are on the rise again. Though no one has a crystal ball to see what will happen next, we can be relatively confident of one thing: real estate values will rise eventually, at least in the long term, and especially in the Florida Panhandle.
In this post, we’ll put the local market under the microscope to help you understand what is happening and how it might affect your real estate decisions.
Where Is Pensacola?
The City of Pensacola lies in the heart of the Florida Panhandle, nestled on the shores of Pensacola Bay. Established in the 1600s by Spanish settlers, the area is rich with history and culture, and its beautiful scenery and enviable warmth and sunshine make it a highly desirable destination for tourists, visitors, and snowbirds.
Today, the city is renowned for its gorgeous sandy beaches, eclectic shopping districts, and luxurious and friendly hospitality. It’s a spectacular place to visit – and, in our opinion — an even better place to live.
Pensacola is also attracting the attention of business owners at all levels! Should you consider launching your venture here? The posts below will give you something to ponder:
- Why Pensacola Is a Great Place to Start a Business
- Should You Buy or Lease a Commercial Building?
- Why Open a Restaurant in Pensacola, Florida?
An Overview of Your Pensacola Housing Options
The local real estate market has something for everyone, whether you’re searching for a vacation destination, a luxury home on the waterfront, or a modern architectural masterpiece. Affordable options such as older bungalows, townhouses, or condos make the region more accessible to anyone. This includes first-time buyers who may be shut out of other markets.
A Brief History of Pensacola Real Estate
Imagine hunting for a house in Pensacola way back in the year 2000. According to the Federal Reserve Bank, the average price in the first quarter of the new millennium was just under $124,000. Fast forward to the beginning of 2024, and the average price grew to over $407,000.
There are not many assets you can buy that will more than triple in value, no matter how long you hold them. If only we could have had a crystal ball back then! But what’s really interesting is all that happened in between. Imagine that you missed the chance to buy more than two decades ago.
Maybe you didn’t have the funds back then, or perhaps you weren’t even born yet. If you look at the history of pricing, there were multiple opportunities to enjoy a significant return on investment. Though there were periods of fluctuation, housing values have risen steadily – and significantly – over time.
- By the end of 2005, average prices grew to over $224,000, more than a $100,000 increase from 2000.
- In 2010, prices readjusted to an average of $172,000, representing another buying opportunity.
- In 2015, the upper trajectory began again, with the average price of a house reaching $185,000.
- By the end of 2020, Pensacola housing prices reached a previously unprecedented $270,000.
- As 2023 drew to a close, housing prices reached nearly $394,000 before soaring past the $400,000 mark in 2024.
The Benefits of Buying Real Estate Now
We can’t say for certain when and how Pensacola real estate will continue to rise in value; however, the long history of outstanding growth over time is a positive indication. When you think of how many people are turning to Florida as a place to put down roots, raise a family, or start a business, it only makes sense that property values will increase.
There’s an old saying that “the best time to buy real estate was twenty years ago,” and we have the facts to back it up. But the “second best time to buy is now!” Getting into the market as soon as it’s financially viable offers numerous benefits.
You don’t just get the chance to grow your wealth, equity, and purchasing power, but you also get a beautiful place to call home. Pensacola communities are full of parks, playgrounds, great schools, fantastic shops and restaurants, and friendly neighbors who are ready to welcome you and your family.
In addition, owning your home puts you in the driver’s seat, where you get to make any and all decisions about upgrades and maintenance. If you want to put in that beautiful new kitchen island you’ve always dreamed of, there’s no landlord standing in your way.
When and if you’re ready for an upgrade, the equity you’ve built over the years will help you afford your ultimate dream home. That first purchase will open many doors for your future. Whatever your vision, a knowledgeable and committed real estate team (like The Zimmern Team) can help make it a reality.
Are you ready to begin the quest for your dream home in Pensacola? We’d love to help! Learn more about our services in the links below:
Action Tips for Buyers
When you’re ready to take the next step into the exciting world of Pensacola real estate, you’ll need a solid plan of action! A great place to start is by gathering your financial resources and information.
Unless you are paying cash, the first step is to find a lender you trust that educates you on your options. Your lender will qualify you based on your income and current net worth, as well as any debts you’ve accumulated. Having the following list of documents will help you move forward:
- Proof of income or employment
- A list of assets in your name
- Any credit card debt or personal loans
- Photo identification
Before beginning your search, talk to a mortgage broker about getting pre-approved for your loan. A pre-approval gives you the advantage when you find a house you love. Plus, it’s a must for negotiating with sellers who will feel reassured that you have access to the financing you need to follow through.
Early in your journey, you’ll want to sit down and make a list of everything you want your new home to have. You can dream big at first since we’re just formulating your vision at this point. Later on, you may have to reassess your priorities based on what is available in the neighborhoods of your choice.
Connecting with a real estate team will help to streamline the entire process. Buying a house can be a complex endeavor, but having a trusted expert at your side will simplify everything. Our team will leave no stone unturned when it comes to getting you the best possible value!
Do you want to know more about buying a house in Pensacola? It all starts with a conversation. Reach out to us at info@thezimmernteam.com or call (850) 266-7245 to explore your next steps.
Meet The Team
Learn about The Zimmern Team’s full-service and community-focused approach to real estate.