The Panama City Beach Florida Condo market is in a constant state of confusion these days. We seem to have the same discussions weekly with customers..where is the bottom? When is the market going to come back? When should we move forward?
These are all obviously very personal questions that we can't give advice on. Who really know..but what you do have to consider are the basics. What do you feel comfortable spending? What can you afford monthly? What do YOU really WANT? Then we can find something that hits your needs. In today's market with sellers buying at so many different levels there is no "True Bottom." That's a relative term. Here's an example:
Take your standard condominium, Condo A. Two sellers have their Panama City Beach Florida Condo in Condominium A on the market. Seller 1 bought their unit in 2001 preconstruction and didn't flip during the boom. The bought it for $300,000 and they put down $30,000 so they owe $270,000. They have some carrying costs, furnishings, etc. but they have decided not to worry about all of that because it's in the past..so they have it listed for $299,000. Now their true bottom(if they don't want to come to closing with a check) is somewhere in the $275,000-280,000 range.
Seller 2 bought on the third flip. They bought the same floorplan and actually in the same building and on the same floor as the Panama City Beach Florida Condo that Seller 1 bought theirs, but they paid $585,000. And yes this did happen during the boom!!! Now they may have put down even more money! But let's say they also owe the bank 90% of the purchase price or $526,500. Everyone can do that math! The are already close to double what Seller 1 wants...so to sell their unit for the same price they would have to come to closing with a check in the $250,000 range.....not going to happen!
That's why we continue to see articles like the one below on Foreclosures and Delinquencies. Some banks understand they are going to take a beating...many still don't. So it's important to make sure you have a solid agent that you are working with. Here's a quick update that was published in The Mortgage Bankers Association on 6/6/08:
Daily Real Estate News June 6, 2008
Foreclosures, Delinquencies Hit Records Foreclosures and mortgage delinquencies both continued to rise during the first quarter of 2008, hitting their highest levels since record-keeping began in 1979, according to the Mortgage Bankers Association.
The seasonally adjusted delinquency rate for mortgage loans on one-to-four-unit residential properties stood at 6.35 percent of all loans outstanding at the end of the first quarter of 2008 on a seasonally adjusted (SA) basis, up 53 basis points from the fourth quarter of 2007, and up 151 basis points from one year ago, according to MBA’s National Delinquency Survey. The delinquency rate includes loans that are at least one payment past due but does not include loans in the process of foreclosure.
The percentage of loans in the foreclosure process was 2.47 percent at the end of the first quarter, an increase of 43 basis points from the fourth quarter of 2007 and 119 basis points from one year ago. While these numbers seem disturbingly high, experts note that certain states and certain types of loans are skewing the national figures upward. Specifically, most of the problems step from prime and subprime adjustable-rate loans 60 and 90 days past due in California and Florida. The 30-day delinquency rate is still below levels seen in 2002.“The problems in California and Florida are extraordinary and they are the main drivers of the national trend,” said Jay Brinkmann, MBA’s Vice President for Research and Economics. The quarterly rate of foreclosure starts on subprime ARM loans in California was 9.24 percent. This rate, combined with Florida’s rate of 8.25 percent, drove up the national average foreclosure start rate to the point where 43 states were below the national average of 6.32 percent. California saw a total of approximately 109,000 foreclosure starts and Florida 77,000. The next highest states were Texas, Michigan and Ohio with between 24,000 and 20,000 each.About 20 states had drops in their number of foreclosures started, including Michigan, Ohio and Indiana where problems have been the most severe for the last several years, Brinkmann said.
Source: The Mortgage Bankers Association (06/06/2008)
So that being said it's important to ensure that when purchasing or even considering purchasing a Panama City Beach Florida Condo you have a solid and knowledgeable agent working with you who truly knows the Panama City Beach Florida condo market.
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