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Panama City Beach Condo Market 2007
From
January 2008
Panama City Beach Condo Prices Decline in 2007
Panama City Beach condo sale prices declined 10-12 percent in 2007 after a 10-15 percent decline in 2006 (see chart below). New issues have entered the markets that will exert downward pressure on existing condo sale prices during 2008.
Panama City Beach Condo Market Update after the Ocean Reef Auction
From www.Condosaletrends.com
October 2008
The Ocean Reef auction on October 18, 2008 concluded with a reported 35 sales. Sounds good but they still have over 140 unsold units in their inventory. The 2BR/2Ba units sold for $225,500, including the auction fee, which is about 20% less than recent sales of very similar Emerald Isle 2BR/2Ba units. This tells us that there are a few buyers out there willing to buy at a 20% discount. The Palazzo auction in August told us there were a few buyers out there willing to buy at a 10% discount. The question is whether buyers will demand more than a 20% discount at the next auction.
Panama City Beach Condo Re-Sales Plummet
Sept 2008
Here at www.condosaletrends.com our only job is to take the data and present the trends so market participants can make informed investment decisions. So, no cheerleading, no anecdotal evidence. The data takes us to where the data takes us. We only track the sale of condo units within the 75 buildings along Thomas Drive and Front Beach Road (20,000 plus units) that are in our database. The analysis covers this particular segment of the market.
Panama City Beach Condo Market Analysis
After The Palazzo Auction
From www.Condosaletrends.com
August 2008
The Palazzo condo building in Panama City Beach, Florida had a successful auction Saturday, August 2, 2008, with around 50 units selling. The Plazzo opened in early 2008 with 129 beach front condo units. As of August 1, 2008 61 preconstruction contracts had closed with 68 units remaining unsold. Some have heralded the event as an indication that the bottom of the condo real estate market is finally here. However, a closer analysis may have a much more sinister conclusion.
July 2008 Panama City Beach Condo Market Update
August 2008
We recently updated our Panama City Beach condo sales data through mid July 2008. The graph below illustrates the number of monthly re-sales from the 70 Panama City Beach condo buildings in our database. The 2008 monthly re-sales through June mirror the number of re-sales from the same period in 2007 even though there has been a substantial number of new units come on line.
June 2008 Panama City Beach Condo Market Update
From Condosaletrends.com
June 2008
We recently updated our Panama City Beach condo sales data through mid June 2008. The graph below illustrates the number of monthly re-sales from the 70 Panama City Beach condo buildings in our database. The 2008 monthly re-sales through May mirror the number of re-sales from the same period in 2007 even though there has been a substantial number of new units come on line.
May 2008 Panama City Beach Condo Market Update
From Condosaletrends.com
We recently updated our Panama City Beach condo sales data through the end of April 2008. The statistics don’t look much different than earlier this year. The graph below illustrates the number of monthly re-sales from the 70 Panama City Beach condo buildings in our database. The 2008 monthly re-sales through May mirror the number of re-sales from the same period in 2007 even though there have been a substantial number of new units come on line.
Have Panama City Beach Condos Hit Bottom Yet? Probably Not.
April, 17, 2008
The PCBDaily.com blog April 12, 2008 article titled “Have We Hit Bottom Yet?” implies that because there are no negative newspaper stories concerning the current real estate market, that we must be nearing the bottom. Jason quotes NAR chief economist, Lawrence Yum predicting “Notable Improvement” in 2008. I have been following Yum’s analyses and predictions from the months leading up to the top of the real estate bubble (mid to late 2005) up to his latest prediction. The thing that stands out about Yum’s analyses is that he has been 100% wrong on every prediction. We all want to believe that the bottom of this market cycle is near. However, quoting a source that has been wrong 100% of the time for the past three years has a negative effect on our credibility as real estate professionals. As quoted before “If you get all of your information from a source whose career and income relies on a particular event happening, then you can be assured that that information will be skewed toward that event happening. Real estate investing is ruthless and it is heartless. If a real estate investor lies to himself about things concerning money, he always loses”.
Panama City Beach Condo Market 2006
From
January 2006
The Panama City Beach Condo market has experienced a significant correction over the past 18 months after several years of exceptional price increases. The run-up in prices was fueled almost entirely by speculative buying. Buyers were speculating that another buyer would come along and purchase their unit or units at a higher price than their original investment. Fifty percent, sixty percent or even 100 percent yearly appreciation was not uncommon. However, this kind of “irrational exuberance” was not sustainable. As of mid-2005, the speculators left the local market.