The topic of association dues is often a contentious aspect of living in a Florida condo association. Owners frequently express their dislike for these dues, yet they are a crucial part of condo living. In Panama City Beach, Florida, condos are currently facing financial challenges. These include rising insurance costs, new structural mandates, and the effects of inflation. The financial management of these buildings varies; some have a better grasp on their financials than others.
Sales volume plummeted beginning in February 2024, leading to the onset of significant price drops by July. From the second to the fourth quarter, prices fell by 15%. The average yearly drop of 5% from 2023 to 2024 doesn't fully capture the depth of these price falls. Rental income decreased, while many associations saw a notable rise in condominium budget costs in 2024. In 2025 many associations are once again budgeted for higher overall expenses. Many buildings costs were partially offset in 2024 by a considerable reduction in insurance rates. Although insurance costs remain much higher than they were five years ago, they were lower than many associations had anticipated in their 2024 budgets.
Sales volume this year is off to an even slower start than last year’s historic low, lagging an additional 31% below 2024. Despite this, average prices are holding steady. It’s still too soon to determine if this signals a broader trend. Similarly, while it’s premature to predict rental performance for 2025, there’s no indication of improvement compared to last year. Many associations have budgeted for increased overall expenses in 2025. Rising building costs were somewhat mitigated by a significant drop in insurance rates. Though insurance costs remain well above levels from five years ago, they are coming in lower than many associations had expected when planning their 2025 budgets.
Condo sales volume this year remains sluggish, trailing 29% below 2024’s 20-year record low. Average condo prices have declined by 6.5% compared to 2024’s annual average, with an even steeper drop of 16% when measured against Q1 2024. A deeper analysis reveals a significant split. Condos built before and after 1990 show a much wider price gap.
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.
We are examining the 2025 Panama City Beach, Florida, Condominium Association Dues, with an ongoing expansion of the condominiums under review.
