The Pensacola real estate market continues to transition back to a more balanced one, where buyer and seller demand are more equal. As we're heading into the close of 2023, we are now seeing where the higher interest rates are causing some heavily-financed buyers to pause or hold-off on purchasing due to the increased monthly payments. On the seller side, we continue to see more reductions in listing prices, more contributions towards closing costs, or offers to help buy down the interest rate for qualified buyers.
As for Pensacola’s new construction market, home builders are currently offering some great incentives such as interest rates from 4.99% (government loans) to 6.25% (conventional loans) with an additional $5K-$15K in incentives for buyers who can close quickly within 30-45 days.
Pensacola Housing Market Outlook
My outlook for the Pensacola real estate market heading into 2024 is for prices to remain relatively flat overall as our market continues to normalize. However, once interest rates finally begin to decline, I expect buyer activity to jump significantly at that time and we’ll quickly be back to seeing more “multiple” and “above-ask” offers.
Market Trends I'm Observing
I have been observing the following market trends.
- Fewer investors chasing properties for Airbnb rentals than was during the market peak.
- An uptick in younger buyers purchasing their first home to escape rising rental rates.
- More cash deals than financed deals currently taking place.
My Relocation Advice
The best advice I can provide is to talk to a lender and make sure you take the appropriate steps to get pre-approved before you relocate (i.e. get pre-approved while you’re still working and quit your job to move here). I would also mention that the longer you wait to move here, prices are likely to increase due to the strong demand for housing.