April 2014 Market update

During the first quarter of 2014, our sales volume was about 5% lower than it was during the first quarters of 2012 and 2013. We sold 164 gulf-front condominiums during January, February, and March of this year, 173 during the first quarter of 2013, and 173 during the first three months of 2012.

In March 2014, we sold 58 Panama City Beach condos. In March 2013, we sold 63 such units, which means that this year's March sales decreased 7.9%. One reason for the decline is that condo prices are going up; meanwhile, distressed sales are becoming less common. Condos are selling at those increased rates -- indeed, some of the units that we've sold in 2014 have brought significantly higher prices than we've seen in recent years -- but the absorption rate is lower.

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Lending on Panama City Beach condos

At this point, lending is available but limited. During the first quarter of 2014, loans were obtainable with down payments of only 11 percent. By comparison, between the 2008 mortgage crisis and the end of 2013, the minimum down payment for a loan was 20 percent. Despite that reduction, other loan prerequisites have remained consistent: debt-to-income ratios, credit scores, and documentation requirements.  You can find out more about what current loan probrams are available by reading condominium loans in Panama City Beach.

Sales history of Splash small 2-bedroom and Sterling reef 2-bedroom condominiums

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This month, we are examining two similar floor plan sales histories. Splash is a two-bedroom condo measuring 1,074 square feet, and Sterling Reef approximates Splash in layout and size. But the buildings in which those units are located are starkly different in terms of amenities and rental potentials. Consequently, the sales price for Sterling Reef is 30 to 40% less than that of Splash. Incidentally, both floor plans hit price lows between mid-2010 and the third quarter of 2012. Since September 2012, their prices have rebounded about 40%.