Posted by: chris
on Feb 11, 2010
The Panama City Beach condominium market is showing strong signs of a bottom on several specific floor plans in a number of buildings. Some floor plans are 10-15% above a bottom set months prior. Buyers should also look a bit deeper than the numbers. I would be much more comfortable spend 200k on a nicely furnished two bedroom than purchasing that same floor plan unfurnished, having mold issues, and other damage at 160k. The sold prices don't always tell the whole story. Short Sales continue to be a gamble. There are some impressive sales going thru. But, for every success story there seem to be four more contracts that took six months simply to fall apart. We are also starting to see many foreclosures and short sales selling at or above asking price.
Our remaining developer inventory continues to decrease. Shores of Panama continues to sell remaining inventory at a natural absorption rate. Aqua has sold 31 of its remaining developer inventory since September. Grand Panama is also selling off some of its remaining developer inventory at attractive pricing.
Real estate condominium re-sales in Panama City Beach were up in December when compared to December of 2008. Fifty-seven (non preconstruction) condos sold in 2009, compared to the Thirty-five (non preconstruction) sales the prior year. Three additional condos sold in 2008 as a result of the Origin at Seahaven auction. Two additional condos sold in 2009 resulting from the Island Reserve auction.
Posted by: chris
on Dec 02, 2009
As prices come down, sales are increasing in the Panama City Beach condo market. We have seen three consecutive months of increases sales compared to the prior year. We are starting to see signs of a clear bottom in many condominium buildings and floor plans.
Real estate condominium re-sales in Panama City Beach were up in September when compared to September of 2008. Fifty-one (non preconstruction) condos sold in 2009, compared to the thirty seven (non preconstruction) sales the prior year. Seventy-one additional condos sold in 2009 at the Island Reserve auction, and eleven additional sales in 2008 were a result of the original preconstruction closings at Island Reserve.
Real estate condominium re-sales in Panama City Beach were up in October when compared to October of 2008. Seventy-eight (non preconstruction) condos sold in 2009, compared to the Fifty-five (non preconstruction) sales the prior year. Three additional condos sold in 2009 at the Island Reserve auction.
Posted by: chris
on Nov 12, 2009
Several sources across the internet are posting articles about new FHA underwriting guidelines. The specifics of this new guidance can be found here (FHA Temporary Guidance for Condominium Policy). Different sources are posting articles with different opinions on these changes. The Miami Herald is claiming it could boost the condo market:
FHA Moves to Boost Condo Market
The Federal Housing Administration is giving the condo market something it hasn't had for a while -- a little breathing room. Last week, the FHA, the federal agency that insures low-down-payment home loans for private lenders, said it was relaxing its building underwriting guidelines as a way of helping the struggling sector ride out the downturn. The move could help boost sales in condos by making more FHA mortgages available to borrowers. (Source: Miami Herald)
Posted by: chris
on Oct 21, 2009
Southwest Airlines Co. announced Wednesday it will begin service to Panama City new International Airport next May.
Panama City will be the discount carrier's seventh location in Florida. This is in addition to New York, Boston, Milwaukee and Minneapolis added earlier this year. This expansion continues Southwest eliminates other flights and shrinks capacity overall due to the slump in air travel.
CEO Gary Kelly made reference to the said the expansion to northwest Florida was done in partnership with a land developer, The St. Joe Co. Kelly also said the airline would operate eight daily flights with destinations to be disclosed in December.
Posted by: chris
on Sep 26, 2009
Many people don’t understand how a
short sale will affect their credit. The short sale itself does not harm one’s credit in any way. It is possible to complete a short sale without having a major impact on the person’s credit. We are going to go through several scenarios to explain short sale options and the ramifications of each scenario.
The largest impact to ones credit is the missed payments. If someone is 30, 60, 90, or 120 days late on a mortgage, it will significantly impact their credit. There is a misconception that one has to be late on the mortgage to be eligible for a short sale. This is not accurate. It is possible to negotiate a short sale without missing any payments on the mortgage. If someone does this and converts the remaining balance due at closing to a signature loan, their credit should not be impacted in any way.
Posted by: chris
on Sep 26, 2009
Many Panama City Beach condominium associations are likely to see budgetary shortfalls in the near future. Some already have. In the overall scope of things, Panama City Beach should be in relatively good shape compared to other areas of the state. The most common reasons for our budgetary shortfalls are:
An increase in costs to run and maintain the condominium
Improper budgeting and funding of reserves
The percentage of owners not paying their association fees
It is important to understand that budgetary shortfalls are relatively minor. It is only when the association looses its ability to raise capital from owners (thru increased association fees or assessments) that they get into trouble.
Each building is going to have a different budget to operate from. The price of condominium insurance seems to be every association's favorite explanation for an increase in association fees. Upon closer review one may find condominium insurance has gone up marginally. It should have very little impact on the fee increases. While flood insurance has gone up, each association gets rebates back at the end of the year for their flood insurance policies. When the rebates are deducted from the total premiums paid, the increase is a very small part of the overall increase in fees. If one compares the budget and makes sure that the rebates are properly applied in the budget, the increase in cost may be found elsewhere. *
Posted by: chris
on Sep 26, 2009
In the not so recent past a first and second mortgage when purchasing a property was very popular. Negotiating short sales with a second mortgage comes with some extra challenges. These challenges multiply when the mortgages are with different lenders. Add a buyer who will need loan approval and you are walking the ultimate tight rope.
Many lenders policies and procedures have been changing rapidly regarding short sales. We are even seeing banks that were holding first and second mortgages split and become separate entities. Short sales can be tricky simply dealing with one lender.
Posted by: chris
on Sep 26, 2009
Many short sales never actually make it to a closing table. There are many ways a
short sale can fall apart. There are also more decision makers than you would see in a normal transaction. It is important for all parties involved to have a clear understanding of reasonable expectations and the process.
In a short sale there are at least three separate decision makers. The buyer, the seller, and each bank that has a mortgage on the property. If any one of these parties does not agree with the negotiated terms through the contract process, the deal can not proceed.
Posted by: chris
on Sep 24, 2009
Real estate condominium re-sales in Panama City Beach were up in July when compared to July of 2008. Seventy-eight (non preconstruction) condos sold in 2009, compared to the sixty-five (non preconstruction) sales the prior year. Eighteen additional condos sold in 2009 at the Island Reserve auction, and eleven additional sales in 2008 were a result of preconstruction closings at Tidewater.
Real estate condominium re-sales in Panama City Beach were up in August when compared to August of 2008. Sixty-four (non preconstruction) condos sold in 2009, compared to the fifty-five (non preconstruction) sales the prior year. Thirty-two additional condos sold in 2009 at the Island Reserve auction.
We are entering a new phase in this real estate condominium market. I have yet to hear anyone talk about the health of a given condominium association. This is going to be a more popular topic in the months to come. You can read some articles on condominium associations here.
Tidewater Condominium's developer units were assigned a receiver as the bank proceeds with the foreclosure of these units. This is actually a good thing for Tidewater because it assures the association dues for these units will be kept current.
Posted by: chris
on Sep 22, 2009
We will start hearing more about condominium associations in Florida this coming year. Let's get a head start on understanding it and what to pay attention to and what to look out for. Panama City Beach is going to have its share of associations that run into budget problems. These should be minor when compared to other areas of Florida.
So what makes this area different? Our condominiums overwhelmingly serve as secondary residences. This is very different from other areas where condos are built as a primary residence or even converted from apartments during the real-estate boom earlier this decade. Many of these types of condos are having large budgetary shortfalls that they can not seem to recover from. The main difference is the strength of the owners.
A good example would be a condominium converted from apartments during the height of the market. If the majority of the owners are just getting by with their bills each month, this can spell trouble for an association. In the current market there are going to be a number of owners who are not paying their association fees. The minute the association increases the association fees or charges an assessment, that number is likely to skyrocket. This can easily spell disaster for that association.
Most condominiums in Panama City Beach serve as secondary residences with the majority of the owners having a strong financial position. If the association needs to increase association fees or charge an assessment to clear up a budgetary short fall, the most of the owners are capable and willing to write the check. This keeps the associations safe in a turbulent market.
