1-12-2012
The Panama City Beach condo real estate market remained flat for 2011. After four years of significant price declines, we seemed to have finally reached the bottom. The number of sales within the 75 buildings in our data base was up almost 30% over the number of sales in 2010. Your friends at www.condosaletrends.com have updated our Panama City Beach condo market data as of January 12, 2012.
Sale Price Trend Analysis:
The data indicates that overall sale prices tended to stabilize in January 2011 with little change over the year. There have been large differences in same type unit sale prices over the past six months, sometimes as much as 15%. This is not unusual when a market is beginning to stabilize after a period of significant price declines. There are still plenty of foreclosures and short sales waiting to come on the market, therefore any sustained period of sale price increases is doubtful. This is somewhat counter-intuitive because the number of properties listed for sale as foreclosure or short sale is down from previous months. The banks are still struggling with the foreclosure/short sale issue. The average time to foreclose in Florida is over one year. It seems that the banks are trying to gear up for short sales rather than to foreclose. That would be a win for everyone.
The following chart illustrates the cumulative trend for same type unit sale prices over the past three years.
The sale price of each type of unit is only compared to the typical sale price of that particular type of unit as of January 1, 2009. As an example, a sale of an 846 SF, 1BR/2Ba unit located in the Celadon is only compared to sales of 846 SF, 1BR/2Ba Celadon units. A unit type with a January 1, 2009 market value of $400,000 is represented as 1 or 100%. An October 2009, $380,000 sale of that type of unit is depicted as .95 or 95% of the January 1, 2009 sale price. The chart above is a trend line of the trend lines of the sale prices of each type of unit from the 17 buildings. Foreclosure sale prices that were unrealistically low (mold problems for example) were not included. There were 389 sales used in the chart. The analysis does not try to skew the price trend in any direction. The data is just the data.
Number of Sales Per Month Analysis:
The following chart indicates the number of sales per month from the 75 buildings within our data base. There was a significant increase in the number of sales of condos in the Panama City Beach market during 2011 when compared to the past three years. Sales were up about 30% when compared to the number of 2010 sales.
Summary:
It appears that 2011 was the bottom of the sale price decline spiral. The number of sales is up while prices have remained overall. Buyers seem to understand that prices can’t fall much further. Financing a second home in one of the Panama City Beach condo buildings will remain difficult for the next several years. Cash buyers have a significant negotiating advantage. The number of foreclosures and short sales will preclude much price appreciation over the next 12 months.
If you need specific sale price and sale price trends information for specific unit types in specific buildings, go to www.condosaletrends.com.
Sam Portman
Condosaletrends.com
Tags: aqua for sale, calypso for sale, celadon for sale, emerald isle for sale, horizon south for sale, long beach tower for sale, majestic beach tower for sale, ocean reef for sale, ocean ritz for sale, ocean villa for sale, Panama City Beach Condos for sale, Panama City Beach Real Estate Blog, PCB Condo Market Analysis, portside for sale, regency tower for sale, seycheles for sale, shores of panama for sale, splash for sale, sterling reef for sale, the summit for sale, tidewater beach for sale, treasure island resort for sale, twin palms for sale