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Panama City Beach Condo Market Overview - October 2025

Panama City Beach Condos for sale market update for October 2025

Condo sales volume remains below last year's 20-year record low, though the past three months showed higher sales compared to the same months in 2024. Average condo prices have dropped 7.4% from 2024's annual average.

In Q3 the average Price Per Square Foot (PSF) was $426 with sales ranging from $297 to $969 PSF, equivalent to 435k to 1.05 Million. These figures vary significantly based on the buildings and floor plans sold during the quarter. Examples follow below.

Ramsgate 2 bedroom sells at $969 Per Square Foot

Calypso 2 bedroom + Bunk Sells at $576 Per Square Foot

Ocean Villa 2 bedroom Sells at $392 Per Square Foot

Summerhouse Condominium 2 bedroom Sells at $297 Per Square Foot

This is one of many examples of a seller losing over $100,000 and 25% of their condo's purchase price without resorting to a short sale or foreclosure.

Condo Sales Volume

panama city beach condos sales volume all years 250910

In 2025 condo sales volume trails 2024 by 12% hitting another 20-year low. It is worth mentioning that the last three months surpassed the same period last year. High interest rates continue to challenge the market. Condo ownership costs are stabilizing. Rental income is declining in many buildings but not universally. Select rental management companies outperform others in navigating the rental market. Specific floor plans are seeing quick depletion of available units. At Coral Reef all two-bedroom units are sold out with no units available for sale.

Condo Market Faces Oversupply Amid Low Demand

condo listing volume 2025 09 15 150438

This graph is deceptive. The number of active condo listings can mislead, as most buildings have fewer than a third priced to attract buyers. Over 75% of condo owners who purchased before the 2021 20% price surge are either mortgage-free or shielded from high interest rates. Many buyers who purchased after 2021 are reselling at significant losses. Strict lending standards ensured only highly qualified buyers purchased post-2021, resulting in no short sales and rare foreclosures in 2025—I’ve seen only one foreclosure, and short sales are nonexistent.  You can see more details on the strict lending requirements here:  Condo Loans in Panama City Beach.

Concerns Over Special Assessments and Insurance Costs

In Panama City Beach, fears of condominium special assessments are unwarranted when working with a skilled buyer's agent. Only a small fraction of condos face significant future assessments, which are easy to identify. This situation contrasts with the special assessment crisis impacting primary residence condos in southern Florida. Insurance costs have also been decreasing notably for two years in a row.

In-Depth Articles on This Topic

Tips for Buyers & Sellers

Buyers: Choose the right building, evaluate condo association stability, foresee special assessments, leverage pricing opportunities, and calculate true CAP rates if investment-focused (though most buyers prioritize owning a condo over CAP rate).

Sellers: Collaborate with experienced agents, understand the value of upgrades, know your market, and thoroughly assess offers to prevent deal collapses.

Christopher Arnold
850-625-5113

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