Panama City Housing Market Report: Condo Sales Rise; Home Sales, Prices Fall

In line with the rest of Florida, Panama City home sales declined in March as the state saw significant drops in most housing markets.

But the number of existing condo sales here rose from 32 in March 2006 to 68 last month. The median price, however, fell from $400,000 to $322,500.

Existing home sales stood at 129 last month, compared to 160 in March 2006, according to figures compiled by the Bay County Association of Realtors.

The median sales price rose to $203,500 from $200,000 the year before, showing a Bay County housing market that has turned a corner.

Association President Scott Bowman said the area’s overall home inventory, including existing homes, condominiums, mobile homes and town homes, has declined steadily on a month-to-month basis since its peak in July 2006.

Low Florida mortgage costs have had a thing or two to do with that - and the fact that the area never saw the huge run-up consuming much of the Sunshine State from 2001-2005.

At that time (July 2006) Bowman said, there were about 7,000 units on the market, compared to roughly 5,500 now.

“Right now, that’s significant,” Bowman said.

While inventory has fallen, Bowman said, there were 814 sales spread across all Panama City MLS housing categories in the first three months. That compares to 984 sales in the first three months of 2006, he said.

“I just don’t see that sales have picked up,” Bowman said.

One area broker, Evan Brusilow of WealthCreation NW Florida, said he thought that this portion of the Florida real estate market had bottomed out.

Brusilow said sales had improved for him in recent months and added he had heard other real estate agents say the same. Meanwhile, Florida home loan rates remain near historic lows, prompting many new buyers to consider jumping in.

Articles by Business 2.0 and the Wall Street Journal, both touting the area’s future growth potential, also helped the Panama City housing market navigate through a rough cycle and kept investors interested.

That the area’s housing prices are still lower than much of the state, making Florida mortgage loan costs much more affordable, also has been a factor.

“I think we’re in better shape than most people,” Brusilow said.

According to figures supplied by the Florida Association of Realtors, only the Sarasota housing market saw a March increase in existing home sales, with all of the state’s other major cities seeing declines.

Earlier this week, Panama City had been listed as having a 28-percent increase in March, but that figure was revised to a 19-percent decrease Thursday after it was learned that state and local data didn’t match up.

Here’s the Panama City housing market by the numbers (provided by the Bay County Association of Realtors):

• Panama City area existing single-family home sales: March 2007, 129; March 2006, 160
• Panama City area existing condo sales: March 2007, 68; March 2006, 32
• Panama City area existing single-family home median price: March 2007, $203,500; March 2006, $200,000
• Panama City area existing condo median price: March 2007, $322,500; March 2006, $400,000

SOURCE: Panama City News Herald