Condo sales prices throughout Panama City Beach have increased at a slower pace. There have been consecutive years of price increases: 10.6 percent, 10.4 percent and 7.0 percent for 2013, 2014 and 2015, respectively. But 2016 Panama City Beach condo sales prices have yet to improve on the trend with prices being down approximately 1.8 percent. Individually, floor and building plans have been disappointing.
Since 2001, average condo sales prices per square foot constructed is off 2.2 percent for the year.
Condo Sales Volume
Sales volumes are down over 10 percent year-over-year. Many sellers are pursuing more money, but shoppers are showing resistance.
Individual Condominiums
Monitoring the trend, it can be clearly seen that Panama City Beach condos for sale are selling in the same relative price ranges as last year. The accompanying graph clearly shows the disparity between the most sought after and less popular properties. A sound example is Calypso currently selling in a range between $288 and $372 per square foot compared to a sale in Emerald Beach selling for only $200 a square foot.
Mentality Behind the Market
Reviewing the current trend and data, we can see a common theme. It seems if we recover at least 80 percent of original pre-construction pricing, a broader range of inventory hits the market. If a seller gets close to the original 80 percent mortgage without bringing money to the table, they are more willing to sell. This is probably a great influence in why we are seeing a pause in year-to-year average price increases.Another reason is 10 years ago prices were pushed higher by faulty mortgage products. Lending standards limited the partnership between participants and financially capable buyers. This restricted flipping and speculation that artificially ballooned prices.
Information in this article was based off of the Waterview Property Group September 2016 Market Update.
