Have you been wondering about that condo investment you made on Panama City Beach?
One thing that is important to recognize is how that investment is performing over the long haul, i.e. 7-10 years down the road as opposed to buying a property with the expectation of making a fortune 6-12 months later. The chart below is based on a 10 year holding period using 2003 as the base year.
Panama City Beach experienced an unprecedented boom in the condominium market generating the development of many new high rise projects. When this market segment peaked in late 2005/early 2006, the large market gains and profits made by folks began to slowly evaporate.
So, given the data shown above on a macro level, you may still have negative equity in your investment at this point in time. On a positive note, market gains have been made in the condo market on Panama City Beach over the last several Quarter periods and the standing inventory is continually being absorbed. During the 3rd Quarter of 2013, the available supply of units was reduced by 14% and overall sales volume increased nearly 14% for the period as compared to the same period 12 months ago.
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