Condos see third year of price increases

In 2012 condos showed promising signs of prices beginning to bounce back. In 2013 condo sales prices clearly showed the market had rebounded. What was interesting about 2013 was that even after two years of price increases, the sales volumes didn't fall off. The reason for this was that inventory was running low on some of the floor plans at their current pricing levels.  Meanwhile other floorplans that had not seen absorption for years were beginning to pick up the slack. The lack of inventory really became apparent in 2014. Even though we had price increases of 10% in both 2013 and 2014, our sales volumes were off by 21% when compared to the previous two years. I expect this trend to continue in 2015.

We're seeing an overall theme of gradually increasing prices with sales volume falling back from the past three years' sales levels. This happens in waves (different floor plans in different buildings). There have been steady price increases over the last three years, and a large part of our sales volume occurred in floor plans located in the newer and most popular buildings.

Many Panama City Beach condo owners who purchased their property from 2004 to 2009 want to refinance their condominiums. Since most banks do not provide loans for the area's condos, consumers do not know where to seek refinancing. Often, lenders, who are usually inadequately versed in condominium financing, give property owners incorrect information. Then, lenders encourage credit worthy condo owners to apply for a refinance, which is later turned down by the underwriters. As a Panama City Beach condominium owner, you need accurate information and knowledgeable lending contacts, so you can get your property refinanced.

This article specifically covers refinancing.  If your considering purchasing a condominium, you may want to read our article on Condominium loans in Panama City Beach.

The trend of dropping sales volumes that we were focused on in June 2014 took a pause in July. We have noticed that our sales volume has decreased by 19% over what it was in 2013 as well as a 19% decrease for the same time period in 2012. From January through July of 2014, we have sold 397 gulf front condominiums. That is compared to the sale of 475 condominiums during the same time period in 2013 as well as 476 condominiums in 2012. We are entering a new market where we see the volume of sales for 2014 has declined. Inventory has become scarce as pricing increases over that of a year ago. Are condos selling? Yes they are, just at a slower pace.