Market Crash, Correction, or Stability?

Some buildings and floor plans have remained stable, showing no signs of pricing stress or reduction. Other buildings are experiencing a significant price drop, with values falling back to 2021 levels.  The average price per square foot tries to balance a very segmented market, but it can be misleading.  Here are a few examples:

• Shores of Panama is selling at $400 per square foot
• Treasure Island is selling at $434 per square foot
• Ocean Villa is selling at $458 per square foot
• Long Beach Condominium is selling at $460 per square foot
• Gulf Crest Condominium is selling at $550 per square foot
• Calypso Condominium is selling at $630 per square foot

Condo owners in Panama City Beach are confronting a formidable challenge, wrestling with a steep increase in association dues primarily driven by escalating condominium association insurance costs and the need for structural reserve inspections. These insurance rate hikes coincide with private condominium association insurance carriers discontinuing coverage within the state of Florida.

Market Crash, Correction, or Stability?

A Few Buildings Have Crashed

Market downturns are characterized by a significant decline in property values, often exceeding a 20% drop from peak prices within a year. In Panama City Beach, a handful of condominium buildings have experienced such downturns, primarily because of a series of questionable decisions made by their associations in previous years that are now impacting those particular properties.  The Shores of Panama stands out as a notable example, with several articles highlighting ongoing issues for over five years.

Condo pricing is 1.9% lower for the year. Even with Covid, the condo market is holding its own. A decade of strict lending requirements created a market of financially sound owners. Panama City Beach will navigate 2020 with ease, but don’t expect average values to be significantly higher this year.