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PCB Real Estate Market Outlook: Unprecedented Strength This Year

PCB Real Estate Market Outlook

The PCB real estate market outlook has surpassed all expectations and continues to drive the local economic recovery.  In addition, the 2020 national housing market has surpassed all expectations.

PCB Real Estate Market Outlook Continues to Show Unprecedented Strength This Year.

The biggest challenge for buyers in the Panama City Beach real estate market is the lack of inventory.  That challenge is good news for sellers.

It is not just the Panama City Beach real estate market that is booming; the 2020 housing market has surpassed all expectations and continues to drive the nation’s economic recovery. The question is, will this positive trend continue throughout the rest of the year?  Especially given the uncertainty around the current health crisis, the upcoming election, and more?

Here’s a look at what several industry-leading experts have to say.

Lawrence Yun, Chief Economist, National Association of Realtors

“Home sales continue to amaze, and there are plenty of buyers in the pipeline ready to enter the market…Further gains in sales are likely for the remainder of the year, with mortgage rates hovering around 3% and with continued job recovery.”

Frank Martell, President, and CEOCoreLogic

“Homeowners’ balance sheets continue to be bolstered by home price appreciation, which in turn mitigated foreclosure pressures…Although the exact contours of the economic recovery remain uncertain, we expect current equity gains, fueled by strong demand for available homes, will continue to support homeowners in the near term.”

Zillow

Zillow’s predictions for seasonally adjusted home prices and pending sales are more optimistic than previous forecasts because sales and prices have stayed strong through the summer months amid increasingly short inventory and high demand.

Back to the PCB real estate market outlook, in the past twenty-four months, the Panama City Beach Real Estate market has dealt with Hurricane Michael and COVID 19. While both were obstacles that caused a brief slowdown in the selling market, the market took off and not looked back. Hurricane Michael caused a lot of displacement that continues to be resolved, especially with the Hurricane Michael Recovery Loan Program. Panama City Beach continues to grow with more people moving to the area, partly due to how COVID 19 has changed the work-home life balance. Also, Panama City Beach rated one of the top five vacation destinations. With that, we can expect investors seeking investment property along the Emerald Coast to again on the rise.

Bottom Line

Many economists agree, indicating the housing market will continue to fuel the economy through the end of the year. Local Panama City Beach real estate market trends underscore that assessment.  If you would like to learn more about the state of the PCB real estate market oulook, reach out to the Life’s A Beach real estate team, we would be happy to help!

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PCB Real Estate Market: The #1 Reason Not To Wait To List Your House

Many industries have been devastated by the economic shutdown caused by the COVID-19 virus.  Panama City Beach real estate is NOT one of them.  Let’s review the PCB Real Estate selling market.

The #1 Reason Not to Wait to List Your House for Sale

The #1 Reason Not to Wait to List Your House for Sale | MyKCM

Many industries have been devastated by the economic shutdown caused by the COVID-19 virus. Panama City Beach Real Estate is not one of them.

Mark Fleming, Chief Economist for First American, just reported:

“Since hitting a low point during the initial stages of the pandemic, the only major industry to display immunity to the economic impacts of the coronavirus is the housing market. Housing has experienced a strong V-shaped recovery and is now exceeding pre-pandemic levels.”

Buyer demand in Panama City Beach is still strong heading into the fallShowingTime, which tracks the average number of buyer showings on residential properties, just announced that buyer showings are up 61.9% compared to the same time last year. They went on to say:

“Normally, real estate activity begins to slow down in the late summer, but this year it peaked in July, August and into September.”

There Is One Big Challenge

Purchaser demand is so high that the Panama City Beach Real Estate selling market is running out of available homes and condos for sale. Just last week, realtor.com reported:

“Since the beginning of the COVID pandemic in March, nearly 400,000 fewer homes have been listed compared to last year, leaving a gaping hole in the U.S. housing inventory.”

The National Association of Realtors (NAR) revealed that, while home sales are skyrocketing, the inventory of existing homes for sale is dropping dramatically. Below is a graph of existing inventory (September numbers are not yet available):The #1 Reason Not to Wait to List Your House for Sale | MyKCMHomebuilders are increasing construction, but they cannot keep up with the high demand. Bill McBride, founder of the Calculated Risk blog, in discussing inventory of newly constructed houses, notes:

“The months of supply decreased to 3.3 months…This is the all-time record low months of supply.”

What does this mean for sellers?

Anyone thinking of putting their home on the market should not wait. A seller will always negotiate the best deal when demand is high, and supply is limited. That’s exactly the situation in the Panama City Beach real estate market today.

Next year, when the pandemic is hopefully behind us, many more properties will be coming to the market. Don’t wait for that increase in competition in your neighborhood. Now is the time to sell.

Bottom Line

Reach out to the Life’s A Beach Real Estate team today to get your house or condo on the market at this optimal time to sell.

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Is this the PCB Beach Home for Me?

PCB beach home - is this the one for me

Before we talking about whether you’ve found the right PCB beach home, let’s recap…

We recently talked about PCB vacation rentals, purchasing a diamond in the rough, and investment property management options.

But it occurs to me that I may have jumped ahead a bit and that we need to roll back to the purchasing steps of a PCB investment property.

Oh, and speaking of “rollback…” I feel like we are on a condo renovation rollback.

As I mentioned last week, we decided to completely gut our condo and finish it out with a top to bottom condo renovation. However, we are now in the “bidding” process with the tradesmen who will help us complete the top to bottom renovation work.

Based on how the condo renovation bids turn out and what we determine we can we do ourselves, we may have to make some adjustments. However, hopefully, work will resume soon on our investment PCB Beach home and we will be closer to our dream investment vacation home on the beach.

Okay, so you have decided you want to a PCB beach home and live the Panama City Beach beach life…

Whether you are a full-time resident of Panama City Beach or a part-time resident, let’s dive into that question.

Let’s chat about the first steps in purchasing a PCB beach home (assuming you are ready to make either a cash offer or have your pre-qualified letter from your financial institution).

Quite a bit of our PCB real estate market is condos, so we will focus on that in this post.

Most of our PCB condominiums are beachfront; the handful of buildings that are not directly beachfront, usually still condos for sale with view of the beautiful Gulf Coast.

Many of the real estate investors we work with have visited our beaches and resorts. Thus giving them an idea of what area, if not what building, in which they would like to own real estate.

Once you have picked out the building or buildings you have interest in, you must have a good understanding of the COA (condo owner association) and what their rules and regulations are. Navigating the nuances of a COA is where your real estate professional is critical.

What can they tell you about the management of the building? Have you received their budget, and how are the reserves? Has your agent provided the condominium documents with rules and regulations required? All of this information is incredibly important when considering a financial investment in your future PCB beach home and you should review before making an offer.

I mentioned earlier in this post that having your pre-qualification letter from a PCB financial institution is important. Some condo buildings present some guideline challenges to financial institutions regarding financing in our current real estate market. Next week, I will address that topic.

It is also essential to have your complete funding lined out for your PCB home purchase.

You do not want to miss out on your beach home in Panama City Beach because you chose the wrong lender!

In the meantime, as always, if you are interested in learning more about Panama City Beach real estate, reach out to our Life’s A Beach Real Estate team, and we would be happy to help you navigate the emerald waters of our market.

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Woody Junot Publishes “Want to buy a Panama City Beach Condo?” on PCBBeachesDirect.com

buy a condo on Panama City Beach

Summary of “Want to buy a Panama City Beach Condo?”

Woody Junot, Broker/Owner of Life’s a Beach Real Estate recently published a new article on PCBBeachesDirect.com.

In the article, Woody provides information and tips on what you need to know if you want to buy a condo on Panama City Beach.

One quote from Woody states:

Beach condos are a great way to own your own piece of paradise with virtually no physical maintenance or lawn care. Just sit back and enjoy the Gulf views and the beautiful evening sunsets. What a great way to spend time with the entire family in Panama City Beach!

Check out the full article here: https://pcbeachesdirect.com/panama-city-beach-news-tips-events/want-to-buy-a-panama-city-beach-condo/.

buy a condo on PCB
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Should You Buy Your PCB Beach Retirement Home Sooner Rather Than Later?

Many of today’s workers who are nearing the end of their professional careers, but maybe aren’t quite ready to retire, have a new choice to makeshould I move to the PCB beach before I retire? 

Should You Buy a Retirement Home In PCB Beach Sooner Rather than Later?

 

Every day in the U.S., roughly 10,000 people turn 65. Before the health crisis that swept the nation in 2020, most people had to wait until they retired to make a move to PCB Beach.  This year, however, the game changed.

Many of today’s workers who are nearing the end of their professional careers, but maybe aren’t quite ready to retire, have a new choice to make: should I move to the beach before I retire? If the sand and sun are calling your name and you have the opportunity to work remotely for the foreseeable future, now may be a great time to purchase that beach condo you’ve always dreamed of or the single-story home.  Whether it’s a second home or a future retirement home, spending the next few years on the beach looking out at the emerald waters of the Gulf Coast that truly makes you smile every day might be the best way to round out a long and meaningful career.

Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:

“The pandemic was unexpected, working from home was unexpected, but nonetheless many companies realized that workers can be just as productive working from home…We may begin to see a boost in people buying retirement homes before their retirement.”

According to the 20th Annual Transamerica Retirement Survey, 3 out of 4 retirees (75%) own their homes, and only 23% have mortgage debt (including any equity loans or lines of credit). Since entering retirement, almost 4 in 10 retirees (38%) have moved into a new home. They’re making a profit by selling their current homes in today’s low inventory market and using their equity to purchase their future retirement homes. It’s a win-win.

Why These Homeowners Are Making Moves Now

The health crisis made us all more aware of the importance of our family and friends, and many of us have not seen our extended families since the pandemic started. It’s no surprise, therefore, to see in the same report that 32% of those surveyed cited the top reason they’re making a move is that they want to be closer to family and friends (See graph below):Should You Buy a Retirement Home Sooner Rather than Later? | MyKCM The survey also revealed that 73% percent of retirees currently live in single-family homes. With the overall number of homes for sale in Panama City Beach, today hitting a historic low, and with the buyer demand for single-family homes and condo’s, skyrocketing, there’s never been a more ideal time to sell a single-family home and make a move toward retirement. Today’s market has the perfect combination of driving forces to make selling optimal, especially while buyers are looking to take advantage of low-interest rates.

If you’re one of the 73% of retirees with a single-family home and want to move closer to the beach, now is the time to put your house on the market. With the pace homes are selling today, you could essentially wrap up your move – start to finish – before the holidays.

Bottom Line 

Whether you’re looking to retire fully or to buy a second home with the intent to use it as your retirement home in the future, the 2020 fall housing market may very well work in your favor.  If you are ready to start working towards your dream of moving to Panama City Beach, reach out to the Life’s A Beach Real Estate team, we are more than ready to help you fulfill your dream!

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Your PCB Investment Property – To Manage or Not to Manage

PCB investment property to manage or not to manage

Last week I touched on the best way to put your PCB investment property on a vacation rental program as there are options out there. Before I get into that, however, let me update you on our renovation project.

Originally we had planned to renovate our PCB investment property in phases.

The first phase, bathrooms, flooring, and new appliances. Next phase painting and furniture, and following that redoing the kitchen.

Well, what is the old saying about “…best-laid plans?”

It turns out the phases have turned into one BIG project when it comes to our investment condo.

We are gutting our condo entirely and tackling it all at the onset. I have had to take a few breaths as I come to terms with the budget (more than) blown. And the timeline went from a couple of weeks… to possibly three months. Not to mention the ups and downs of the surprises we find as we get further in our condo renovation project.

Saying all that, we decided it was the smarter business decision to complete the renovation project sooner rather than stretching it out over time.

Renovating in phases could impact renting a PCB condo.

Furthermore, ultimately, we would spend more money by having to redo completed work every time we start a new project.

So, needless to say, this adventure with our PCB investment property is continuing and bound to have more twists and turns!

Stay tuned as the Panama City Beach investment condo adventures continue…

Ok, back to the subject at hand.

As a Panama City Beach real estate agent, I am often asked, “How do I manage my investment property?”

Well, there are two primary options for investment property management in PCB:

  • First, you can hire a property management company.
  • Alternately, you can manage a PCB investment property yourself.

If you choose to manage a PCB condo or investment property on your own, you will get a better return on your investment.

However, you will be handling reservations, cleaning, and maintenance.

If you hire a PCB property management company, you pay a fee percentage to back to the company.

However, you will not have to worry about the headaches of reservations and day-to-day management.

Another benefit of managing a PCB condo yourself (beyond the increased revenue) that you get more control over your reservations. You also have hands-on communication with your cleaning and maintenance team. You will need a reliable team, and you want to take care of that team as they are boots on the ground, helping you take care of your investment.

Ok, so then, what are the benefits of hiring a PCB condo management company?

Primarily, someone else is handling everything for you and many people prefer that approach.  For those who do, it is worth it to them to pay the fee.

Here is some advice… and please take to heart if you are getting into the PCB investment property market, and especially if you decide to hire a company to manage: CHECK ON YOUR INVESTMENT PROPERTY! Don’t assume that someone else is going to take care of your property as you would. Make sure it is maintained appropriately and according to any fees charged on your statement(s). Monitor your reviews and if there are issues, address them and do not ignore them.

If you are stepping out into the emerald waters of the Panama City Beach or PCB investment property market and have questions, reach out to us.  We would be more than happy to help!

And as always, if you have ANY PCB real estate needs at all, the Life’s A Beach Real Estate team is here to help.

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Emerald Coast Real Estate – Buyers Are Finding More Space In The Luxury Home Market

A year ago, additional space and extra amenities had a very different feel for homebuyers. Today, the health crisis has brought to light how valuable more square footage and carefully designed floorplans can be. Home offices, multi-purpose rooms, gyms, and theaters are becoming more popular, and some families are finding the space they need for these upgrades in the luxury market.

Buyers Are Finding More Space in the Luxury Home Market

Buyers Are Finding More Space in the Luxury Home Market | MyKCM

 

The Institute for Luxury Home Marketing (ILHM) explains:

“With quarantine concerns still top of mind for many luxury buyers, we see large, sprawling estates making their comeback.

For instance, the last six months have seen a resurgence in the buying of mega mansions and estate-size homes – specifically properties that offer space (both inside and outside), separate home offices, gyms, and private amenities such as swimming pools, yoga studios, and recreation rooms.”

This was not the case at this time last year, as the most recent Luxury Market Report from ILHM emphasizes:

“Exactly one year ago, we reported that demand for large properties, mega mansions, private estates, and luxury ranches had reduced significantly over the previous few years; especially from the younger generation of luxury property buyers.”

For today’s buyers looking for larger homes, steady increases in equity might be what makes a move possible. Leveraging home equity makes it easier to afford the down payment on a luxury home, and current low-interest rates are making mortgage payments more affordable than they have been in years. The report from ILHM also notes:

“Luxury real estate prices may continue to strengthen further into the third quarter, as the affluent continue to see large investment returns from the currently strong stock market.

Coupled with the low interest rates, the policies granting (and insisting) on working from home implemented by many employers, and the concerns of the pandemic, all translate to the affluent increasingly trading in their city lifestyle for a home that has it all.”

Clearly, today’s strong gains in home equity paired with record-low interest rates make fall a great time to move up into the Emerald Coast luxury market to meet those changing needs.

Bottom Line

If you’re ready to gain some breathing room in a larger home, reach out to the Life’s A Beach Real Estate Team so you have the guidance you need to find more space in the luxury home market.

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PCB Investment Properties: Renovating The Diamond in The Rough

PCB investment properties - renovating your condo
Last week I shared with you that we have purchased our first foray into PCB investment properties – our first vacation investment property in Panama City Beach

Now, let’s talk more about another side of PCB investment properties—the renovation…

As soon as the seller accepted our offer on our PCB investment condo purchase, we were on the phone with our “reno guys”…(you remember, from the “I got a guy” list) to schedule our beach condo renovationWe timed the start of our PCB condo renovation with the closing of the sale, hiring them to come in and start (in the words of Chip Gaines) “demo day.” 
We planned to rip up the flooring and rip out the showers and install new flooring and showers.  When that is complete (as I write this, the flooring and shower project is not quite finished…but getting there), the painting begins, along with the addition of some new appliances. 

When that is all finished, that will be the completion of phase one of the renovation…. and we will put our condo on the PCB vacation rental market. 

Going through a home renovation is exciting….and of course, in our excitement, we wanted it all done sooner rather than later… Okay, okay… I wanted it all done right away.  Reality check. Much as with the blown budget… the reno timeline always extends farther than the first projected date.  
 
Now, in all fairness, it is not our reno guys fault that little miss Hurricane Sally decided to come to visit the Panhandle.  And unfortunately, her presence caused some minor flooding issues in and around Panama City Beach.  Sally made her presence known with lots of rain and flash floods on the roads in the area, which caused problems with travel along the beach roads. Thus, Sally’s stay along the Gulf Coast pushed our project back a day or two.  Oh, and on the subject of Hurricane Sally…if you plan on having a vacation home along PCB beach, you always want to be “tracking the tropics” and have a hurricane plan.
 
So anyway… the project is still underway and only pushed back a few days. And I have gotten over my disappointment.  I am now focused on simply looking forward to the big reveal of phase one. 

And of course, I am excited to get my condo on the PCB vacation rental market with other PCB investment properties.

After all, the longer the property is not on the market, the less money it makes… right!? 

Speaking of the PCB rental market, as an investment property real estate agent in Panama City Beach, many investors ask, “What is the best option to manage the rentals of the investment property?” 

There are options, of course. Specifically, you can hire a PCB property management company or manage the rentals of the vacation property personally. Understanding the market and the needs of our investors, we can offer advice and direction that can make hiring our team a little less time and energy-intensive than doing the management yourself.

Which brings us to another must-have list for a Panama City Beach real estate agent and that is a list of property management companies, of which there are many OR other resources that will enable an investor to manage PCB vacation properties themselves. 

As I mentioned last week with the “I got a guy…” list, we use the same approach with any other referral type; we will never recommend unless we have or are willing to use them.

Next week as we continue the adventure, we will discuss PCB investment property management options. 

In next week’s post, I will share with you more detail about your options for PCB investment property management, as well as the pros and cons. 

In the interim, if you are interested to learn more about purchasing your Panama City Beach home or purchasing a PCB vacation investment property, reach out to Life’s A Beach Real Estate

We have a team of PCB real estate agents – true real estate professionals – who can walk you through your transaction, whether it is your first home, first vacation home, or first PCB investment property.