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. 

Comment (0)

Developer Ron Durham held his absolute auction of 28 units at Palazzo Condominium.  Hundreds turned out for the first absolute auction of a gulf front condominium in Panama City Beach.  Palazzo is known for its great interior finishing, spacious floor plans and oversized balconies.  The end units well thought out floor plans make great use of a view that seems to go on for ever.

It started out looking like a repeat of the Marina Landing Auction.  They started bidding on 3 bedroom end units.  The first one finally sold at 475k after what seemed like hours because the auctioneer didn't seem to want to end at 475k.  The second 3 bedroom sold at 425k.  At that point we heard a familiar phrase from the last auction.  "The next one is the last 3  bedroom we are going to auction".  This is what we all heard at Marina Landing before announcing they would auction 2 more units and end the auction.  So, the third and final 3 bedroom brought 475k.  Then we heard something we had not heard before.  The auctioneer asked if anyone else would like to buy a 3 bedroom end unit at 475k.  He found one person who took the offer. 
With that they moved on to the 3 bedroom interior units.  They auctioned off 3 with bids of 325k, 325k, and 295k before ending the 3 bedroom interior units.  Once again people were asked if anyone would like to buy any more of the 3 bedroom interior units at 295k.  The bidders were quiet for a moment looking at each other when suddenly bidding paddles started finding there way into the air in a frenzy.  Auction assistants started blowing whistles and screaming in frustration to get there bidder the next condo.  Three sold in less than a minute, whistles and bidding paddles were everywhere.   Durham ran to the stage and announced
"cut it off, we got to see where we are at".  When they started up again they took bids on the 2 bedrooms.  The 2 bedroom auctioned off at 270k when they announced the same thing.  Once again units started selling one after another.  A single one bedroom was auctioned at 220k when they announced they would sell one more at 225.  At that point the auction was ended, but an announcement was made that all floor plans were being offered at the last biding price. 

I am not sure who has the final count, but the auction boards showed:

Comment (2) Read More...