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.

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The Panama City Beach condo market realized its second bulk condominium building purchase today.  Marina landing closed the fifty four remaining developer units today.  Marina Landing condominium stands sixteen stories and holds eighty seven bayfront units. 

We have had bulk buyers looking at Panama City Beach condominiums for several years now.  In most cases it becomes a three party negotiation between the buyer, seller and the bank.  Banks tended to be the largest obstacle in these transactions.  They were not willing to take the write downs that would be needed to find a bulk buyer. 

While Marina Landing is only our second bulk purchase, it will not be the last.  We have a different condominium in negotiations right now.  We are likely to see a few more bulk purchases as we move thru this real estate market. 

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It has now been roughly 6 weeks since the Ocean Reef Absolute Auction.  According to my review of Bay County Records, Ocean Reef sold forty-seven developer owned units as a direct result of the Auction.  At the end of the auction the sales boards showed thirty-five units under contract.  Offers continued to come in weeks after the auction ended.  I believe it is fair to say that the buyers were happy with there contract prices.  All contract holders had fifteen calendar days to walk away from there contracts without penalty. 

Condos at Ocean Reef continue to sell and go under contract.  For those of you who missed the Ocean Reef Auction Results article, here were the results:

Please keep in mind that a 10% commission was added to everyone's purchase price.  So, if you bought a:

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