November 2013 Market update

In my market update for September, I was expecting absorption to decline with the price increases we have been seeing. The last two months have shown no sign of that occurring. In 2013, there were 64 condos sold in September and 73 in October. In 2012, there were 57 condos sold in September and 47 in October. So far, 2013 has produced 23 more condo sales than there were during the same time period of 2012. While I expect sales volumes to fall as prices increase, the market is clearly not there yet.

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This month we are showing the sales history of the three bedroom floor plan at Splash Condominium.? There has been an impressive price increase this year. They bottomed out between the last quarters of 2010 and 2012. Sales prices were between $290,000 and $325,000. Many of these were short sales. As the distressed inventory dried up, there was a significant price increase. This is indicated by a sale in June for $400,000 and one in October for $439,000. When compared to the 2012 prices, 2013 has shown an impressive 50 percent sales price increase. We are seeing these price increases on many Panama City Beach condos for sale.

Click on image below to see the full size graph