Real Estate Condominium Sales in Panama City Beach were down in July when compared to July of 2007.  When you look into the numbers you may realize sales were actually up.  Seventy-three condos sold in comparison to the one hundred and fourteen sold the prior year.  Fifty eight of the condos sold in 07 were preconstruction closings at Shores of Panama.  So we should actually be comparing seventy-three in July 08 against fifty-six non-preconstruction sales in July 07.  As market prices come down we are seeing an absorption rate despite the current economy.  Some developers are holding on to preconstruction inventory while others are doing what it takes to move it.  The Palazzo auction was a good example of this.  They did a great job marketing the property and found a price point that put 46 condos under contract.  In the past weeks, a separate developer quietly reduced new condominium prices to move inventory. 
Short sales and foreclosures are starting have an impact on the local market.  Some of these sales are causing an absorption rate in condominiums that have not seen sales in quite some time.