The Florida panhandle is one of the most popular vacation destinations in the U.S. for metro Atlantans. If you love the sugar-white sands of these beaches and have dreamed of one day owning a condo there, now could be your opportunity of a lifetime.
Thanks to the real estate slump, condo prices all along the Florida gulf coast have plunged over the past couple of years. Nowhere is this more evident than in Panama City Beach. “There couldn’t be a better time than now to buy a condo here,” says Gene Ursprung of Sterling Realty, LLC in Panama Beach. “The condo market here has changed significantly with the real estate adjustments we’ve had over the past 16 to 24 months.”
I’m speaking with Gene on the balcony of a 2,700 square-foot condo overlooking the gorgeous white sands and blue-green waters of the Gulf of Mexico. He says it’s currently listed for sale at $699,000, fully furnished, which is about 60% less than the unit would have sold for two years ago.
“Condo prices here are down considerably—they’re now in the $200-225 a square foot range,” adds Carl Allen with Counts Realty Group in Panama City. “Two years ago, you couldn’t touch a condo here for under $400 a square foot. The last time we saw prices like this was before the pre-construction boom of 2003. So prices have been set back six or seven years.”
Low prices are the good news for potential buyers, but financing is the potential snag. “Lenders have retracted significantly,” says Ursprung. He says 30-year fixed-rate mortgages with low down payments are no longer an option for condos purchased in Florida as second homes. Instead, buyers are looking at short-term (two to five years) adjustable rate and interest-only loans with 25-30 percent down payments. And a credit score of 720 is the minimum borrowers will need to qualify for a mortgage, he adds.
In this environment, cash buyers are sitting pretty. “As always, cash is king, but this true now more than it has ever been,” Ursprung stresses.
Another good reason to buy in this area now is the new retail and shopping developments and major infrastructure improvements taking place here. Pier Park, for example, will be a one million square foot shopping and entertainment complex on Panama City Beach when it’s finished—phase one opened in 2007. Trolleys will take you up and down the Panama City Beach strip for $1.25.
In addition, roads and utilities are being upgraded and new sidewalks and walking and jogging paths are being built. And perhaps most importantly, Bay County International Airport will open next May, the first new international airport to open in the U.S. since Denver International. “This will bring more international tourists and potential buyers to the area,” says Ursprung.
Tom Neubauer with ERA Neubauer Real Estate , Inc. in Panama City concurs, noting the 10 percent growth in shipping at the Panama City port authority in the face of significant declines at most ports around the country. “There are so many economic development opportunities here now,” he says. “This has become a hot spot for new growth and economic development.”
Economic development is what it’s all about, he adds: “Couple this with the fact that we have excess supply of condos and new housing, and it makes this a great place for investment.”
Ursprung says the Gulf Coast today represents the best market for buyers since at least 1999. “If you missed the boat before, come back down and give the area another try.”
For helpful video tips on buying or managing beach condos, visit: www.RealEstateTipsandAdvice.com and enter “condos” in the search box.