Real estate condominium re-sales in Panama City Beach were slightly higher in December when compared to December of 2007.  Thirty-four condos sold in 2008, compared to the twenty-seven (non preconstruction) sales the prior year.  Thirty additional condos sold in 2007 that were sold as a result of preconstruction closings at Tidewater.  Origin at Seahaven put roughly 27 condos under contract during their auction in December.  We can expect those contracts to close thru the month of January.  It is notable that I do not count preconstruction sales in my monthly sales comparisons.  I do this to show a normal absorption rate in the market.

Sterling Breeze sold its remaining developer inventory in December.  Marina Landing followed suit with its remaining developer units in January.  Foreclosures and short sales are now controlling the market.  Condominiums where developers tried to hold pricing at preconstruction levels are starting to see short sales and foreclosures by the original preconstruction contract holders who did close.    We continue to see prices at specific condominiums decline because of this.   Even with the lower prices, the absorption rate does not increase.  After all, there are only so many people looking to purchase condos in a given month.