Pensacola, Florida Real Estate Market as of Mid–2025

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Pensacola’s housing market in early 2025 reflected both cooling and pockets of resilience, amid ongoing coastal issues affecting the region. In January, the median home sales price was $345,000, up 19% from January 2024’s $290,000. Yet as the year progressed, that momentum tapered: by July, Redfin reported a median sale price of $361,000, an 8.6% increase year-over-year, while Zillow recorded a decline of ~3.8% in average home values, estimating them at $264,718.  

Inventory & Buyer’s Advantage  

Supply has been rising steadily, with inventory increasing nearly 20% year-over-year to about 2,932 homes for sale by early 2025. Pensacola MLS data echoed this shift—Q1 saw a 12% increase in condos and 15% in single-family home listings. These trends, along with lengthening days on the market, signal movement toward a more balanced or even buyer-favored market, as reported in local coastal news.  

Time on Market & Buyer Leverage  

Homes are lingering longer for sale. In January, the median days on market was 98 days, up from 75 days the year before. Q1 saw homes selling in about 84 days, nearly double historical averages. Redfin data showed an average of 82 days in July. Moreover, over 64% of recent sales closed below listing price, giving buyers enhanced negotiation power.  

Regional & Neighborhood Dynamics  

Not all areas are equal. Highly desirable neighborhoods like East Hill, Downtown Pensacola, and Beulah remain relatively stable, while outer suburbs and smaller homes are seeing more pronounced price declines. New development in places like Beulah, Cantonment, and Gulf Breeze is boosting inventory, offering buyers more options. In Escambia County overall, median home prices held steady at around $315,000 in Q1.  

Rental Market & Investor Activity  

Pensacola also has a growing rental market, highlighted in recent community stories. Over the past two years, roughly 2,500 new apartment units were delivered, with another 2,000 expected by the end of 2025, increasing rental options. Average rents range from about $1,324 (Apartments.com) to $1,725 (MLS)—with landlords often offering concessions, reducing the effective rent. Investor activity has dipped slightly: institutional investors accounted for ~6% of home purchases in Florida’s Q1—down from 6.8% in 2024.  

Economic Headwinds & Market Outlook  

Statewide, Florida's housing market has shown signs of cooling due to rising inventory and lingering high mortgage rates, with Zillow predicting a ~2% drop in home listing prices by the end of 2025. A surge in unsold homes—inventory up nearly 23%—has triggered periodic price cuts up to 40% in some areas. While Pensacola isn’t at the epicenter of these sharp declines, it's very much part of the broader state-level correction.  

Pensacola’s real estate landscape in 2025 has shifted from sellers’-dominated to more balanced territory:  

Prices: Up early in the year, but showing signs of flattening or modest decline.  

Inventory: Increasing, providing buyers with more choices and leverage.  

Time on Market: Lengthening, reducing urgency for buyers—but still relatively quick in coveted neighborhoods.  

Investor Activity: Slowing slightly, though rentals remain in demand.  

Outlook: Likely steadier conditions ahead, with continued watchfulness around interest rate dynamics and local affordability.