The February Market update explained how the market is showing strong signs of a bottom on several specific floor plans.  This is not the case for the entire market.  A number of buildings built at the tail end of the preconstruction boom are still seeing prices decline with little or no absorption rate.  Several of these buildings had remaining units after developers tried to close out preconstruction contracts.  Many had auctions or reduced price offerings.  We are now starting to see the short sales and foreclosures of the units that conveyed at the original preconstruction pricing. 

The short sales in this market are a very mixed bag.  Less than half of all short sales actually make it to a closing table.  There are several reasons for this.  Some of the individuals processing the short sale do not have the experience or expertise necessary to complete the transactions.  Other

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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.

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