Real estate condominium re-sales in Panama City Beach were flat in October when compared to October of 2007.  Forty-Eight condos sold in 2008, compared to the forty-nine (non preconstruction) sales the prior year.  Twenty-one additional condos sold in 2007 that were sold as a result of preconstruction closings at Marina Landing.  Ocean Reef put roughly 50 condos under contract due to the auction.  We can expect those contracts to close thru the month of November.  It is notable that I do not count auction sales or preconstruction sales in my monthly sales comparisons.  I do this to show a normal absorption rate in the market.

Origin at Seahaven announced its absolute auction to be held in December.  Tidewater and Shores of Panama announced new developer pricing for unsold inventory.  Foreclosures and short sales are starting to have a significant impact on the market.  We are seeing hefty price cuts on many resale condominiums because of this.   Despite these price cuts, we have yet to see an increase in the absorption rate over last year.  Additionally, a number of the 2005 and 2006 buyers are having financial difficulties.  Foreclosures and short sales are starting to control the pricing of many condominiums and floor plans in this market.