May 2013 market update

After starting off the year relatively aligned with recent annual statistics, sales volume numbers for April, 2013 were much stronger than they have been for the past few years. There were 116 Panama City Beach condominium units sold in April, 2013. This figure is significantly higher than the 94 condominiums sold in April, 2012. The April, 2013 numbers are also higher than the 109 condominiums sold in April, 2011. This news is surprising because the number of available buildings has fallen.

Many of the foreclosures are not remaining on the market for very long. Recently, we have seen a number of foreclosures sell for the asking price, and many have sold for above the asking price. Additionally, a number of foreclosures have gone under contract just days after being placed on the market. However, not all foreclosures are selling. If they are not priced well, they tend to flounder on the open market.

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Overall, this is good news, but people should not become overzealous. In our January market update, we showed the history of the Calypso two-bedroom plus bunk floor plan. We demonstrated how pricing for this floor plan had risen approximately 30 percent from its lowest price. We also cautioned that after these floor plans in various buildings saw a rise in price, pricing was likely remain the same for a while. We would like to update that graph. Ultimately, the Calypso two-bedroom plus bunk floor plan did remain the same; it stayed right at the $325,000 price range. Four sales have occurred this year within that range.

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We expect that most buildings and floor plans will see a nice 20 to 30 percent price bump. Some buildings have already experienced a rise in price; others have yet to see one. Many Panama City Beach condos for sale are in the process of experiencing an initial price hike. Most of our buyers are not speculators; they are people looking to buy a condominium on the Gulf of Mexico to serve as a second home. This is healthy for the market, and we believe this trend will continue.