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.

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.

Market Crash, Correction, or Stability?

Some buildings and floor plans have remained stable, showing no signs of pricing stress or reduction. Other buildings are experiencing a significant price drop, with values falling back to 2021 levels.  The average price per square foot tries to balance a very segmented market, but it can be misleading.  Here are a few examples:

• Shores of Panama is selling at $400 per square foot
• Treasure Island is selling at $434 per square foot
• Ocean Villa is selling at $458 per square foot
• Long Beach Condominium is selling at $460 per square foot
• Gulf Crest Condominium is selling at $550 per square foot
• Calypso Condominium is selling at $630 per square foot

Market Crash, Correction, or Stability?

A Few Buildings Have Crashed

Market downturns are characterized by a significant decline in property values, often exceeding a 20% drop from peak prices within a year. In Panama City Beach, a handful of condominium buildings have experienced such downturns, primarily because of a series of questionable decisions made by their associations in previous years that are now impacting those particular properties.  The Shores of Panama stands out as a notable example, with several articles highlighting ongoing issues for over five years.