After a 10% increase in 2018, we are up 3% so far this year. Sales volume is down 40% compared to the same period last year. Preconstruction owners made up much of our inventory supply for years. This supply is quickly diminishing and returning us to sustainable sales volumes. Strict lending standards are keeping our condo market free from outside influences.
Looking at the entire sales history of Ocean Villa, I compared the two bedrooms there with four other buildings that were constructed by the same developer and had identical floor plans. The graphs show a comparison of recent sales, the entire history, sales volume, and annual percentage change. Condos on the west side of the beach tend to demand a slight premium to those located in central Panama City Beach.
With only two months remaining in 2018 condo sales prices are up 10% year to date. Sales volume is up 12% compared to the same period last year. Fourth quarter sales volume is going to be significantly impacted by Hurricane Michael. This will be covered in further detail later. The majority of supply is being provided by preconstruction owners who have still not seen prices fully recover. We are seeing demand from people who want to own condos in Panama City Beach. While buyers are paying attention to the numbers, we have not seen speculators buying Panama City Beach gulf front condos. We can attribute this to strict lending standards preventing noncredit worthy buyers from entering the market. This is providing a balanced market free of outside influences.
Seven months into 2018 condo sales prices are up a staggering 11% this year. Sales are outpacing the prior year with volumes up 26% compared to the same period last year. This is all despite an inventory shortage for many individual floor plans. Much of the supply we are seeing is coming from the many preconstruction owners who have yet to see a complete recovery to their original purchase prices. Financing is loosening slightly, but still holding to strict lending requirements. Speculators and flippers are nowhere to be seen. These factors are contributing to the healthy condo market we are seeing in Panama City Beach.
A Look Back At 2017 Condo Sales In Panama City Beach
2017 was a very healthy year for the Panama City Beach condo market. Sales volume was the biggest surprise with an increase of 40% year over year. An interesting phenomenon this year was a buyer finding their perfect condo, struggling to agree with the seller on a contract price, and watching it sell shortly after. Many buyers who did find their ideal condominium were pleasantly surprised later in the year. Several preferred floor plans had significant price increases this year, or have no available inventory. Strict financing requirements are still keeping speculators and flippers from entering this market.