The Pensacola property market has recovered from the doldrums of the global credit crunch that affected property pricing across the United States. Today the market is very different and has been steadily offering returns to those investors who showed faith in both the resilience and potential of the Pensacola market when the slow but steady increase in value began to gather momentum in around 2016.
By the end of 2018 it became apparent that the Pensacola market will continue to grow at a rate of between 5% and 6% during 2019. The first quarter figures are still to a great extent unavailable – but there are rock solid drivers that underpin the strength of the market – namely a decreasing inventory and greater demand – both drivers of growth.
For those who want to investigate Pensacola rentals there are some very good reasons to make the leap into the market right now. Although investors may have missed the heydays of 2016 there is every chance that an investment will continue to deliver exceptional returns in the medium to long term as demand from renters continues to trend upwards. Industry research and comment by Pensacola real estate gurus indicates that builders of commercial and residential property are just about at their maximum capacity. Once that happens other market forces tend to come into play. The lack of skilled builders and artisans and market demand will in all probability lead to new builders entering the market. Other strengthening markets have shown similar trends. When this does happen there is usually a period of overcompensation which drives prices down as new supply comes online – however, this is usually short-lived.
It is not only Pensacola rentals that show great promise for property investors. Capital appreciation shows a pleasing move upwards – delivering excellent growth on savvy property investments over the last few years. For instance, in 2017 Escambia County showed a year on year increase in sales of 4% this is in the face of the aforementioned undersupply – a situation that is slowly but surely wilting in the face of positive market forces and new development initiatives.
So, for those who want to leverage the possibilities of the rental market in Pensacola, what are some of the tips that real estate professionals have to offer? The first would be to leverage their knowledge – especially if you are considering a move to Pensacola from other parts of the country. Advice on average prices is important as well – this includes the actual closing price. Given the fact that demand is growing in the face of that development shortage the final costs for a home – and how much the rental level needs to be in order to offset the capital costs can be different from the initial estimates of the buyer – care needs to be exercised and quality advise sourced.
An experienced group of property advisers such as the team from Main Street Properties can make all the difference. Not only to find the right property – but also to provide property management services which are essential for those who want to maximize their rental income. Give them a call today and find out how you can leverage the demand for that great Pensacola lifestyle.