In 2016, the Panama City Beach condo market was nothing if not a mixed bag. Average condo construction prices per square foot after 2001 was down less than one percent compared to 2016. 2016 also saw a price increase in some floor plans while others fell lower or completely flat lined.

There remains a healthy demand for condos in Panama City Beach, helping to stabilize and improve the region. Speculators and flippers are staying away because of strict financing requirements. This is maintaining a healthy real estate market throughout the area.

Condo Sales

Condo Sales Volume

Sales volumes on Panama City Beach condos are down 8.5 percent year-over-year.

We need to take into account that a variety of owners paid out between 20 and 30 percent more than they did in 2016. Many of those earlier buyers held out against the financial crisis.

In 2015, prices rose for the fourth consecutive year. At this point, the Panama Beach City area saw fewer buyers ready to pay higher asking prices. The period of large volume distressed sales were done. Of the near 625 condos sold over 2016, only a dozen were foreclosures. Those numbers indicate a balance between supply and demand. Expect to see lighter sales volumes to continue.

Individual Condominiums

In a review of the Panama City Beach condo sales market, one graph cannot tell the whole story. There are sectors that have seen increases in condo sales over 2016 and other segments have been flat in pricing or fallen back. It should also be noted that different condo buildings command different prices.

Below is a graph that looks at various Panama City Beach condos. The data shows differences between historical and current prices. You see, for example, Calypso currently sells in a range between $278-$324 per square foot. This in comparison to a recent sale at Emerald Beach Resort where the price was only $200 per square foot.

Outside of Celadon and Ocean Villa, condos throughout the Panama City Beach area have sold in the same price range for three consecutive years.

The Panama City Beach condo market demonstrates clear signs of being healthy. We are not seeing any flipping nor is there any significant presence of speculators. Strict guidelines for anyone who hopes to qualify for credit remain in place and help steady the market. These should ensure a balanced market for some time to come.

Information provided by Christopher Arnold's January 2017 Market Update.