Update: July 2017: Normal condo loans are available at Calypso again.
In October 2016 Calypso was added to the no lend list for the banks that finance condos in Panama City Beach. One of the considerations for providing normal condo loans to gulf front condominiums in Panama City Beach is pending litigation. Any litigation banks feel could severely impact a condominium association can cause condominiums to be added to this list. In October of 2016 the bank that buys the majority of the Panama City Beach condo loans on the secondary market added Calypso to this list.
Tax reports from the TDC (Tourist Development Council) showed a 40% decrease in March tax revenue for 2016 compared to the prior year. Hotels and rental management companies are forecasting even lighter spring break traffic this year. What was previously considered a peak rental month is now another quiet rental month for many condo owners in Panama City Beach.
This is a very touchy issue in Panama City Beach. I just thought it would be helpful to present the data for condo owners.
As times change, so do condominium loans in Panama City Beach. The reason is because most buyers are people who purchase these properties as secondary residences or investment properties. The type of loans that banks grant for secondary residences are different from those offered for primary residences especially after the mortgage meltdown of 2008. Before the mortgage crisis, most lenders sold their condominium loans to Fannie Mae, Freddie Mac and any other bank or financial institution that was willing to take them on the secondary market.
A look back at 2016 condo sales in Panama City Beach
The 2016 Panama City Beach condo market was a bit of a mixed bag. The average sales price per square foot for condos built in the area after 2001 are down less than 1% from last year. This year saw some floor plans increase in price while others were flat or fell lower. There is still a healthy demand for condos as the area continues to improve and mature. Strict financing requirements are providing a healthy market free from speculators and flippers.
The Panama City Tourist Development Council has voted to recommend the Weeks Marine company be awarded the beach renourishment project. On January 4, the council voted to approve the company for the project and increase the project budget to $17 million, up from $12 million. The final vote will be held by the Bay County Commission.