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Pensacola, FL: Real Estate Market & Trends 2016

Published on Tuesday - December 27, 2016

The Pensacola real estate market continues to achieve positive gains in 2016. The first-half of the year experienced both rising home prices and growing appreciation. Prices for Pensacola real estate are up from a year ago, while appreciation continued to outpace the national average. For investors and homeowners, gains in the last three years have extended the trend of positive price growth since the recession. Gains in total equity also continue to rival the national average, which bodes well for both homeowners and investors.

Factors influencing the Pensacola real estate market in 2016 include the local economy and home affordability. In addition, foreclosures and bank-owned properties are expected to play a role in the housing market moving forward. That said, the Pensacola real estate market is shaping up to be an investor’s paradise in 2016 and beyond.

Pensacola, FL Real Estate Market Statistics:

Pensacola real estate investments

Home appreciation for Pensacola real estate continued to improve during the first-half of 2016. One-year appreciation rates reached 7.3 percent during the second quarter, compared to the national average of 4.9 percent. Three-year rates further increased, rising to 11.4 percent, although still lower than the 17.8 percent achieved by the rest of the country. Price appreciation and principle payments in the last three years have boosted total equity growth since the recession, which has benefited homeowners and investors alike. For those considering Pensacola real estate investments, the following highlights appreciation gains in previous years:

  • Homes purchased in the Pensacola, FL housing market one year ago have appreciated, on average, by $14,240. The national average was $14,963 over the same period.
  • Homes purchased in the Pensacola, FL housing market three years ago have appreciated, on average, by $25,886. The national average was $46,878 over the same period.
  • Homes purchased in the Pensacola, FL housing market five years ago have appreciated, on average, by $48,514. The national average was $82,353 over the same period.
  • Homes purchased in the Pensacola, FL housing market seven years ago have appreciated, on average, by $39,932. The national average was $77,054 over the same period.
  • Homes purchased in the Pensacola, FL housing market nine years ago have appreciated, on average, by $23,800. The national average was $31,126 over the same period.

The Pensacola real estate market continues to earn moderate gains in the form of equity. With appreciation rates up, the last nine years have seen improvements in equity rates. The biggest gains were achieved in year five when Pensacola real estate appreciated on average by $48,514. Although still below the national average, gains in total home equity remain favorable for homeowners as the trend should continue in the second-half.

The month of November saw 1,251 homes in some stage of foreclosure, according to RealtyTrac. That represents a 65 percent decline from the previous month and 32 percent lower than the same time last year. The number of real estate owned (REO) also decreased in the month of November. The number of REO properties in Pensacola was 48.1 percent lower than the previous month and 40 percent lower than the same time last year. In comparison to the national average, the current rate of foreclosures in Pensacola is low and should continue to improve moving forward.

Pensacola, FL Real Estate Market Summary:

Pensacola real estate

  • Current Median Home Price: $171,500
  • 1-Year Appreciation Rate: 7.3%
  • 3-Year Appreciation Rate: 11.6%
  • Unemployment Rate: 5.5%
  • 1-Year Job Growth Rate: 1.4%
  • Population: 52,703
  • Median Household Income: $45,727

Pensacola, FL Real Estate Market (2016) — Q2 Updates:

Pensacola housing market

The Pensacola real estate market continues to make steady improvements in 2016. The median home price for Pensacola real estate was $171,500 during the second quarter, compared to the national average of $239,167. Appreciation rates also made headway during the first part of the year, as one-year and three-year rates were 7.3 percent and 11.6 percent respectively.

Growth in the Pensacola real estate market can be contributed to two elements: the local economy and home affordability. The unemployment rate for Pensacola was 5.5 percent during the second quarter, compared to the national average of 4.9 percent. Although lagging in comparison to the rest of the country, the rate of unemployment in Pensacola has improved relative to the same period last year. In addition, employment has held up and is on an upward trend. One-year job growth for Pensacola was 1.4 percent, compared to the rest of the country at 1.9 percent. Despite lower numbers than the national average, the local economy in Pensacola continues to make small but significant improvements each quarter.

Another factor benefiting the Pensacola real estate market in 2016 is home affordability. Homeowners paid 9.5 percent of their income to mortgage payments during the second quarter, whereas the national average paid 15.8 percent. While historically strong, this marks an improvement over the first quarter of 2016. Conversely, price-to-income ratio for Pensacola real estate eased during the second quarter. The median home price to income ration for homeowners was 1.7 in the second quarter, compared to the national average of 2.9. Although higher than previous years, the Pensacola housing market remains one of the more affordable markets in the country.

Lastly, the rate of foreclosures could very well influence the Pensacola real estate investing moving forward. There were 1,250 homes in some stage of foreclosure during the month of November — 65 percent less than the previous month and 32 percent lower than last year. In addition, the rate of REO properties continues to decrease, falling 48.1 percent from the previous month and 40 percent from the same time last year. From an investor perspective, however, foreclosures remain a unique investment opportunity when done correctly. For homeowners, on the other hand, the decline in foreclosures should only further benefit home prices.

Moving forward, the Pensacola real estate market is forecasted to experience higher price growth in the next 12 months than the rest of the U.S. According to the National Association of Realtors (NAR), Pensacola real estate is predicted to grow by 4.3 percent, compared to the national average of 3.6 percent. 

*The information contained herein was pulled from third party sites. Although this information was found from sources believed to be reliable, FortuneBuilders Inc. makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. Any reliance on this information is at your own risk. All information presented should be independently verified. FortuneBuilders Inc. assumes no liability for any damages whatsoever, including any direct, indirect, punitive, exemplary, incidental, special, or consequential damages arising out of or in any way connected with your use of the information presented.

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