Downtown Pensacola Florida - nice site

I like the website that is being used to promote downtown Pensacola's image. The site is www.downtownpensacola.com and it has a professional look. It is a site that you should look at if you are interested in downtown redevelopment. There will be some new residental real estate available in downtown pensacola once the developers are finished. Those projects include 800 East, Bayfront Lofts, The Court of North Hill, The Floridian, Frascati, Jefferson Place, Lofts at Alcaniz, 111 Spring Street, and The Tarragona. Prices for the new units start around $200,000 and go above $1 million. The projects are all described in detail on the above website. Pensacola and the website were recently promoted in a full-page ad in USA Today, through the efforts of the Downtown Improvement Board. We welcome your comments...Write to me at joe@stukey.com or visit our site at www.stukey.com.

Get Top Dollar for your Home?--- not likely!

In the Real Estate market, 2006 will be the year for making adjustments. The 5-year sellers market has ended and the buyers market has begun. Getting top dollar for homes is last year's news. The New Reality is that many overpriced houses are sitting on the market for a long time. And there are many, many houses on the market.

In the New Reality, the buyers are often able to negotiate prices and people who need to sell quickly have to understand that, because sales of existing homes are expected to fall by almost 6% this year. New home sales will be down almost 8%. Mortgage interest rates will be climbing towards the 7% mark.

Nationwide, median existing-home price for 2006 is estimated to be $220,300. For new homes, $250,200 --- because construction costs are up and because of inflation.

So, let's be realistic this year. Don't let your higher price sell your neighbors home! And as for buyers, don't think you can wait until the "bubble" pops (it's not happening!). Buyers and sellers should work with knowledgeable agents who can provide guidance in completing the transaction, with a good outcome for both parties.

Florida's Demographics - Now and the Future

The changing demographics of the U.S. population will play a big part in the real estate market of the future. For example, there are 36 million people in the Baby Boomer age bracket, the first of them turning 60 in 2007. In 10 years, the 65-and-over population will be growing faster than the population as a whole. Today, about 1,000 people per day move to Florida. As more people reach their golden years, the population of Florida will increase at a faster rate.

One dominant trait of the Baby Boomers is that they want to hold on to their youth, so they may want to live in communities where they can stay active and be entertained. About 46% of the population growth is expected to be in 3 states -- Florida, California and Texas. (In contrast, the number of retirees leaving Florida has recently been increasing, partly because some of them may have spent their funds and find the area is no longer affordable.)

Also, more home buyers will be women. There are currently more women in college than men (58%) and that makes women more likely to be making financial decisions on their own. In the last 20 years, the number of single women buying homes has already doubled.

The racial minorities will make up a larger percentage of the population too. For example, Hispanics represent 1 in 7 of Americans today, but in 10 years it will be closer to 1 in 4. Because of the number of births and new arrivals from Latin America and Asia, parts of the U.S. will have a much more diverse population. As the population ages and becomes more diverse, it may also be more common to see multiple generations of families living together in the same home, which might mean that the home has to be bigger. Just some food for thought...maybe some strategy can be derived from all that data. We welcome your comments, so write to me at joe@stukey.com or visit our website at www.stukey.com.

Northwest Florida Home Rental vs Buy

One indicator that the home pricing "bubble" is not going to burst --- rental prices. Rental prices are catching up with the escalating monthly mortgage payments. In Northwest Florida, rental prices have gone up significantly during the last two years. The loss of several apartment complexes during the past two storms have created a significant shortage. It is estimated that one-third of the residents of Escambia County are renters. In Santa Rosa, that number is a bit lower. Because of salary levels in the area (on average, less than $35,000), an affordable rent would be about $600 per month for a one-income household. A two-bedroom apartment is now more likely to be in the $800 range or higher. A house, maybe in the $900 - $1,000 range. So, for those who can afford the down-payment, it would be best to put that money into a home that will grow in value and will be a big tax deduction. What's your story on renting in this area? Send me an email at joe@stukey.com or visit our website at www.stukey.com.

2006 NW Fla Real Estate Market - 3/1/06 Update

Around Northwest Florida, the real estate activity for February 2006 looks a lot like January. For the entire area surrounding Pensacola, the total number of single family homes sold was 420 (390 in January). A subset of those numbers is the number of houses sold in Gulf Breeze (23 in January and 27 in February). The active, sold, expired, and withdrawn listings paint a dim picture for sellers in the market (good news for buyers!). The active listings for single family houses are hovering around 4,000, so that is still quite high. The sold figures show that the homes being sold are mostly under $200,000. There are few houses in that price range across the bay in Gulf Breeze, so sales are moving about half as fast there as in Pensacola. In summary, too many houses on the market, too few selling, and too many local people that can't afford the houses at the current prices. Advice to sellers --- expired and withdrawn listings reflect a much higher price per square foot than those houses that sold this month ---- so the price has to come down to the current market level in order for them to sell! We welcome your comments -- you can send an email to me at joe@stukey.com or post a comment here.

What's up with this Real Estate Market??

It must be a market going through a transition....from hot to cool, but it's got some conflicting signals. At the start of 2006, sales of "existing homes" have slowed enough to turn things into a Buyer's Market. But the list prices are holding up...and price negotiation is often happening in order to seal the deal.

In the "new homes" market, sales have slowed, creating record levels of inventory in most areas of the country, but the builders are starting new homes at a rapid pace. Again, we see new home prices rising in spite of it all. It is a mixed bag, but the prices will ultimately determine the real estate market's temperature. After all, we can only buy what is affordable. In the Northwest Florida area, hundreds and hundreds of homes are in the builders' plans. At today's prices, and considering NW Florida wages, it will be interesting to see who buys them. We welcome your comments --- post them here, or email them to joe@stukey.com.

The Battleship Oriskany ---Down deep in May....

The 32,000 ton Oriskany is going to be sunk in the Gulf of Mexico, off the coast of Pensacola (on May 17, 2006), in about 210 feet of water. The sinking is going to be documented by National Geographic. Now let's do the math. Most dive spots in the local area are less than 100 feet. The practical limit for most dives is 130 feet or less. So, divers going that deep will probably be able to only reach the flight deck. Any deeper, for any amount of time, significantly increases the risk of nitrogen narcosis, commonly known as the bends. Even at the 130 foot level, the entire dive can only safely last about 8 minutes. That is about enough time to reach the flight deck, take a quick look, and get back to the surface. So, a word of caution --- this dive will be for advanced divers. Knowing the risks and wanting to be prepared, Baptist Hospital in Pensacola has begun additional training to use their hyperbaric (decompression) chambers to deal with diving injuries such as the bends. The ship's superstructure will be at the shallower depths (around 60 feet) and will offer much to see, so play it safe and don't ruin your day.... And, if you're just visiting, might as well move here so you can see the ship whenever you want. We welcome your comments --- post them here, or email them to joe@stukey.com.