We’ve all been wondering how condo sales were going to do this year after last year’s oil spill mess. Well, so far, quarter 2 condo sales are pacing to have an astounding 44% increase over last year. Yes, that’s a 4, paired with an 4 and a percentage sign. Condo sales are up 44% this year over last.
How many condos were sold.
Looking from April 1 through today, there have been 262 condos sold on Panama City Beach according to the Panama City MLS. During the same period in 2010, there were a total of 182 condos sold. Many expected and speculated that sales this year over last would be higher because of the negative effects from the oil spill, but 44% is staggering.
If we take the total number of condos sold, and divide it by the number of days in the period, and multiply it by the number of days left in Q2 2011, then add that number to 262, then at this point, we’re pacing to sell 294 condos for the second quarter period 2011. During Q2 2010 there were 215 condos sold – this would still put us at a 37% increase over last year.
Average price, size and square foot.
Looking closely at the numbers, it’s always fascinating to me to see what people are buying. Here are some averages to soak up.
- Average list price: $192,488.95
- Average sold price: $179,729.42
- Average number of bedrooms: 1.78
- Average square footage: 1,122
- Average price per square foot: $157.15
Break down of some of the more popular rentals.
Aqua
- 4 condos sold during period
- Average list price: $338,475.00
- Average sold price: $303,750.00
- Average number of bedrooms: 2
- Average square footage: 1,349.00
- Average days on market: 426
- Average price per square foot: $225.13
Calypso
- 8 condos sold during period
- Average list price: $259,787.38
- Average sold price: $244,062.50
- Average number of bedrooms: 1.75
- Average square footage: 1,138.63
- Average days on market: 228.88
- Average price per square foot: $214.17
Emerald Beach Resort
- 5 condos sold during period
- Average list price: $182,279.80
- Average sold price: $170,100.00
- Average number of bedrooms: 1.40
- Average square footage: 1,051.60
- Average days on market: 174.20
- Average price per square foot: $158.86
Tidewater Beach Resort
- 16 condos sold during period
- Average list price: $194,125.06
- Average sold price: $185,031.25
- Average number of bedrooms: 1.44
- Average square footage: 1,028.44
- Average days on market: 82.50
- Average price per square foot: $178.26
Pricing this year over last year.
The number of condos sold has sky-rocketed, but the price has fallen 13%. I say fallen, but many would choose to use the word “corrected”.
The average price for the period last year was $302,311, and the average price for the period this year is $179,729.
Observations, opinions and summary.
Being the proponent of Panama City Beach that I am, the huge increase in sales numbers is very exciting. The volume of sales is very promising coming out of an economic downturn. People are becoming more confident in their purchasing, they’re taking action in buying up inventory and they’re telling their friends about the great deals they are getting.
The days of buying a condo and generating revenue from rental are back. Condo pricing is getting back to a point where it makes sense to purchase and then rent out. I get calls all the time from people asking me if it makes sense to buy this or that, looking at rental revenues. Most of the properties I manage are booked solid all summer long, with decent rates. More people are wanting to come to the beach this year then any other year before. Just look around you, Panama City Beach has been buzzing like crazy the last couple weeks since summer started.
Good luck, happy buying and ask if you have questions!
PCBDaily 
How could Emerald Beach Report and Calypso have the exact same averages..that’s a bit suspect.
That aside, I’m glad to see that the market is moving in the right direction..it’s about time!
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Jason,
I appreciate your enthusiasm. The market is dramatically improving. I do most of the sales at AQUA and not all sales show up on the MLS. Many of my transactions are private sales and not the distressed sales you have reported. While this is good news, the better news is the market is much stronger than you have reported. I have had several AQUA sales much higher per square foot than the short sales recorded in the MLS. Last summer was a waste, but the pent up demand for property on the beach will make buyers more aggressive as they see inventory evaporate.
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I totally hear you, Tim. There will always be data out there that isn’t in the MLS. Unfortunately, short sales and foreclosures have made some of the numbers on paper look bad. But, the emphasis of this article is that stuff is moving, and there was a huge increase, so far, this year over last year.
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Those sales that are not recorded in MLS will only harm those sellers that are trying to sell their property in MLS. Sales notes and sales data in MLS is extremely important because without it, distressed sales are going to be used for comparable purposes
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Maybe I’m wrong but the information is probably taken off of public records not the MLS. I know Trulia gets theirs off of those records. When we bought our condo it was not listed on the MLS but Trulia picked it up.
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How does Tim have private sales that do not show up on the property records. Do we only report MLS transactions and not what is on the deed books?
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Hugh, good point, those sales that are NOT in MLS should at least be noted in MLS for comp purposes otherwise the market will continue to be distressed driven because the data for non distressed sales is not available, other than just sales price at the property appraiser site which is not nearly enough information
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Our condo at Calypso is booked solid from April thru August this year. We have some good 3 and 4 day rentals in the fall and our snowbirds booked December thru March. Our condo pays for itself and has nowhere to go but up in price. Calypso being across from Pier Park is a no brainer. The west end of the beach will explode in the next 10 years. Of course Jason knows this because thats where their office is.
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As an owner who purchsed in 11-2006, I was waiting for the prices to bottom out and thought the bottom was close at hand, but it was not and is still sloping slightly downard. Most buyers in 2006 bought with a 5 year fixed rate and many with interest payments only. 2011 is the last of the 5 year plan and payments will increase with adjustable rate interest on morgages. This is, in my opinion, the reason for the large increase in condo sales this year. The 2006 buyers owe much more on their mortgages than the condo is worth, and we don’t know when the inventory is going to be sold down to a normal supply and demand number. Some owners are selling because of the financial burden, and others sell because of not knowing when the market will improve. One factor to keep in mind when deciding to consider a foreclosure,is a Freddie Mac/Fannie Mai regulation regarding a short sale, foreclosure or deed in lieu of foreclosure. There is a Freddie mac/Fannie Mai regulation that prohibits a bank that sells the mortgage to Freddie/Fannie from loaning money to a person who has been involved in a short sale; that includes, foreclosure, deed in lieu of foreclosure within the last seven years.( It is either 7 or 8 years). This regulation handcuffs one’s ability to invest in real estate. Your credit ratings may be impeccable and very high, with this one exception which will prevent your real estate loan from being approved. Investors cannot get back into the real estate market unless one pays cash. To me, removing the aformentioned regulation would be a win/win situation for the government, banks and home buyers. Jobs would be created by allowing more buyers to purchase homes/condos which stimulate the economy.
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The data Jason reported is from the MLS. All title transfers can be found on the Bay County website. That is the information appraisers use.
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I’m going to bring these comments back to the spirit for which they should be . . .
Wow, Jason, that’s totally awesome! I can’t believe the sales volume numbers are up so much. That must mean a wonderful combination of things are happening: TONS of people are finally becoming interested in our area coupled with prices being the right price to justify actually buying as a potential cashflow investment.
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Jason, good post, the number of sales are UP, that is a great thing. Pricing has corrected such that those that were priced out of the overheated market can now come back into the market. Overall, those sales are encouraged because of one major thing, PRICE. While some buildings like Aqua may have some equity sales, it is the distressed market that is the market of the moment and those distressed sales are setting the market. Its a buyers market people, that means you are supposed to buy! One more thing, we will NEVER know when prices go back up until after they do. Buyers are finally figuring that out
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We love our Calypso ground-floor unit, and it is rented soild thru the summer months. Some of our fall reservations have already came in earlier than in the past. Our winter guests stay for five months now! Many of our guests are repeat guests, which we so apreciate. We aren’t going anywhere!
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