In recent months, the real estate landscape in Escambia and Santa Rosa counties has seen notable shifts that directly impact property owners and investors. As you consider your options in the current real estate market, it's crucial to be informed about the trends and factors influencing property sales before deciding to sell or lease your property again.
1. Decrease in Closed Sales: Year to date, both Escambia and Santa Rosa counties have experienced declines in closed sales compared to the previous year. Specifically, Escambia County has seen a significant 16% drop, while Santa Rosa County follows with an 8.5% decrease. These figures indicate a slowdown in market activity, reflecting broader economic trends and buyer behaviors.
2. Increase in Active Listings: Corresponding with the decrease in closed sales, there has been a substantial increase in active listings across both counties. Escambia County listings are up by 30% from last year, while Santa Rosa County has seen a staggering 69% rise in active listings. This surge suggests a growing inventory of available properties, which typically favors buyers rather than sellers in negotiations.
3. Median Sales Price Trends: In Santa Rosa County, the median sales price has dipped by 2.4% from the previous year. This slight decline, coupled with increased inventory, points to a market where buyers have more options and potentially more bargaining power.
Why Selling Now Might Not Be Ideal
Given these market dynamics, landlords should carefully weigh their decision to sell property at this time. Here are several key considerations:
- Increased Competition: With a higher number of listings available, your property may face more competition, potentially leading to longer listing periods and reduced sale prices.
- Lower Sales Volume: The decrease in closed sales indicates a slower market turnover, meaning properties may take longer to sell.
- Price Adjustments: The slight decrease in median sales prices suggests a less favorable environment for achieving premium sale prices compared to previous years.
Cooling Rental Rates: What Landlords Need to Know
As we approach the end of the peak rental price market, landlords with vacant homes should consider reducing their rent prices before the end of summer and the start of the new school year. This strategic move can provide a competitive advantage, helping you rent your property more quickly than the competition. The cooling of rental rates, driven by increased new supply, is particularly evident in areas like Downtown Pensacola and Beulah.
Significant Reductions in Florida Rental Rates
Florida is experiencing some of the most substantial year-over-year rent price reductions in the nation. Among the top 50 largest metro areas, 27 have seen rent decreases averaging 2%, or about $25-$50. According to Rent.com, Florida's median home rent price is now $2,117, reflecting an 8.8% decrease year-over-year.
Strategic Considerations for Landlords
While the current market may not be as optimal for selling as it has been in previous years, it presents opportunities for strategic planning:
- Property Maintenance: Use this time to enhance your property’s appeal through renovations or upgrades, positioning it favorably for future market conditions.
- Market Monitoring: Stay informed about market trends and indicators to identify optimal selling windows or investment opportunities.
- Need Based Sales: If you need to sell your home, you can still do so, but we will need to price more competitively than recent sales comps to procure a buyer this fall and winter.
In conclusion, while the real estate market in Escambia and Santa Rosa counties is experiencing a period of adjustment with decreased sales and increased listings, landlords can navigate this landscape with careful planning and strategic decisions. We are happy to speak with you about your investment goals and how we can be helpful.
