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.

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.

The majority of condominium prices reached a low point between 2011 and the start of 2012. However, a large number of condos actually increased in value by 20 to 30 percent during the past two years. Some analysts believe the increase was greater, but for our purposes, we are only considering true price increases. If you purchased a condo that was unfurnished during that time for $220,000, and another buyer purchased a similar condo in good condition that was fully furnished for $250,000, both buyers ended up with about the same deal. In each case, the condos sold for 15 to 30 percent less than their current sales price.

This past May, 120 condominium units were sold in Panama City Beach. Interestingly, the numbers for May 2013 were identical to April 2011. This number is an increase from the 94 units sold in May 2012. Similar numbers were shown for June with 106 units being sold in 2013 compared to 95 the year before.

Long Beach has been one of the most popular two-bedroom floor plans in Panama City Beach. These units have two master bedrooms with views of the water and a comfortable living space in between. However, despite these obvious perks, the Long Beach condominium association has had a history of litigation and higher than average association dues. More information regarding these issues will be covered in a future blog post.