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Written by Chris Arnold.

Panama City Beach Condo Market Overview - May 2025

Panama City Beach Condos for sale market update for May 2025

Condo sales volume this year remains sluggish, trailing 29% below 2024’s 20-year record low. Average condo prices have declined by 6.5% compared to 2024’s annual average, with an even steeper drop of 16% when measured against Q1 2024. A deeper analysis reveals a significant split.  Condos built before and after 1990 show a much wider price gap.

Condos Built After 1990

The average Price Per Square Foot (PSF) in April was $428, with sales ranging from $357 to $523 PSF.  The equivalent pricing is 510k to 640k. Below are some examples.

Calypso 2 bedroom + bunk selling at $523 Per Square Foot or 640k

Ocean Villa 2 bedroom at $431 PSF 495k

An identical floor plan sold in April for 555k, attributed to its cleaner decorating and updates.

Coral Reef 2 bedroom at $357 PSF or 510k

Condos Built Before 1989

panama city beach condos for sale 2000 minus 250506

Pinnacle Port 2 bedroom at $536 PSF or 640k

While the broader market sales are pushing prices down, Pinnacle Port and Ramsgate condo sales are positively affecting per-square-foot prices.

Summerhouse 2 bedroom at $307 PSF or 330k

Moondrifter 2 bedroom at $295 PSF or 310k

Condo Sales Volume

panama city beach condos sales volume for March 2024.

In 2025, sales volume lags 29% behind previous years, signaling another 20-year low. The market faces ongoing challenges, including high interest rates, increasing condo ownership costs, and falling rental income. Despite these obstacles, certain floor plans are seeing rapid depletion of available units.

In Panama City Beach Florida only one 2-bedroom condo remains for sale at Coral Reef Condominium.

coral reef 01

Factors Driving The Pricing of Panama City Beach Condos for Sale

Supply Dynamics

Panama City Beach active listings for condominiums.

The number of active condo listings can be misleading, as fewer than a third in most buildings are priced to attract buyers. Some buildings and floor plans now have only one or two active listings, with over 70% of listings sold in the past six months.  Coral Reef is an example of this as shown in the post above.

New construction in Panama City Beach has stalled since the early 2010, as developers struggle to secure financing. In contrast, South Florida is seeing condominium projects with accessible developer funding. This is one factor limiting new inventory in Panama City Beach. Over 75% of condo owners, who bought before the 2021 price spike of 20%, are either mortgage-free or insulated from high interest rates. In 2025, I've observed only one foreclosure and no short sales.

Impact Of Condo Association Costs

In-Depth Articles on This Topic

Strict Condo Lending Requirements

For years, increasingly stringent lending standards have narrowed the options for financing condo purchases. All signs indicate interest rates will remain higher for longer.  You can see more details here:  Condo Loans in Panama City Beach.

Advice for Prospective Buyers and Sellers

For Buyers

  • Choose the Right Building: It's astonishing how often buyers switch buildings shortly after purchase.
  • Assess the Condo Association's Health
    • Gain insight into why the association fees are set at their current rate.
  • Anticipate Special Assessments: Special Assessments Aren't Sudden.  Understand what major maintenance projects are coming up, such as exterior painting, elevator refurbishments, concrete repairs, and fire system updates.
  • Spot and Leverage Pricing Weaknesses: Understand any price vulnerabilities and capitalize on them.
  • Calculate the True CAP Rate for Each Floor Plan (if applicable): Don't rely solely on rental projections; determine the actual Capitalization Rate for each unit type.

For Sellers

Partner with Knowledgeable Real Estate Professionals

The market for condos remains active. If your property is not selling, it might be time to delve into the reasons why. Properties that have been enhanced with thoughtful upgrades and decor often sell at a higher value. It's important to have a clear understanding of your property's real market value.

Diligently Evaluate Incoming Offers

Should your agent or broker lack expertise in evaluating incoming offers and vetting lenders, you may repeatedly encounter contracts falling through.

Questions?

Feel free to contact me.

Christopher Arnold

Broker

850-625-5113

Panama City Beach real estate, Panama City Beach condos for sale, Real Estate Market Updates, Calypso Condominium

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