by Wendell Browne on January 25, 2012
The buzzword these days seems to be Unemployment. I’ve talked numerous times about how the high unemployment trends continue to impact the real estate market in Bay County. The latest numbers released for our area indicates a 10.1% unemployment rate. This is up slightly from November of 2011 and a glimmer of good news would be a decrease from December of 2010.
Unemployment Trends
The graph below reflects the median sales price of detached single family homes in Bay County, Florida from 2003 to 2011.
Notice the low unemployment numbers during the 2003-2005 era and the continual increase in the sales price. In mid-2007, unemployment began to escalate and by late 2008, the unemployment rates for this market virtually doubled thus impacting demand. This of course limits demand and impacts supply.
This is a major issue that we will have to overcome in order to see any recovery in the marketplace.
How has the unemployment issue influenced your market area?
by Wendell Browne on January 13, 2012
We all know how the real estate market has changed over the last few years. This is especially true in many parts of Florida due to the feeding frenzy of the 2004-2006 era. One thing that is a certain in this business is change. Change is a constant in Real Estate.
One point that I think is important to point out is the fact that you as the homeowner should be looking at your home in the long term real estate cycle. In other words, take the last 2-3 years out of equation as you’re no better off than millions of other Americans.
Step back for a moment and think about your home and that investment you made more in terms of 8-10 years and beyond. The graph below will help you visualize this.
The graph above for this single family development in Lynn Haven, Fl. shows all detached single family home sales from the local MLS system. If you purchased your residence during the time period of the late 1990′s to mid 2003, then you still have equity in your residence EVEN in today’s soft market.
Notice how this subdivision witnessed market appreciation up to mid 2007 at which time it peaked. In late 2007, market correction began and has continued to date. Granted if you attempt to sell it tomorrow when you purchased it in 2007 then you may have some underwater issues. However, if you purchased prior to 2004(in this case), then you most likely still have some equity in your home. SO, from the long term real estate cycle perspective, you haven’t lost.
I hope this information helps to give you some perspective and insight on thinking about your capital investment for the long haul.
by Wendell Browne on January 10, 2012
Today we will look at the condo market on Panama City Beach and how it performed in 2011. Overall, Panama City Beach experienced a -8.5% decline in the median sales price for the year. The inventory was reduced by 22% and sales volume was up considerably from 2010 posting a 24% increase in unit sales.
Click to Enlarge
Rounding out the year, activity was strong with the 4th Quarter posting a bump up in the median sales price in addition to an increase of 19% in total sales volume as compared to the prior 12 month Quarter period.
What will 2012 bring for the Panama City Beach condo market? The Beach is still significantly oversupplied with inventory, capital is limited in the lender arena, and foreclosure/short sale activity continues to plague the area. With the strong finish that took place in the 4th Quarter of 2011, it will be interesting to see how the 1st Quarter of the New Year performs.
