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?

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.

I hope this information helps to give you some perspective and insight on thinking about your capital investment for the long haul.

The Panama City Beach Condo Market

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

Ending the Year for Beach Condos

Rounding out the year, activity was strong with the 4^th 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.

Market conditions continued to correct in Bay County, FL during 2011. The median sales price in the detached single family housing sector declined some -9.9% during 2011 compared to the prior 12 month look back period.

On the brighter side, the overall sales volume in the detached single family sector was up 12% and the standing inventory was reduced by -24%. Some of the areas that comprise this market include Callaway, Panama City, and Panama City Beach. The Callaway area experienced an increase in the overall market decline in 2011 contrasted to prior years. On Panama City Beach, the overall depreciation slowed considerably in contrast to the past two years.

What will 2012 bring? While our market is showing some positive signs, the market continues to correct due to unemployment trends, foreclosures, and short sales.

The charts below reflect correction in this market segment.

If you are in need of appraisal services, trend line analysis, or any appraisal needs, please visit our main website.

Panama City Beach has experienced tremendous declines in real estate values since the market feeding frenzy of 2004-2006. When this market was sizzling, a significant amount of the overall appreciation for improved properties was attributable to the underlying lot value.

The significant market correction that has taken place over the last several years has the same common denominator – the land.

Notice the change in the median sales price of residential land on Panama City Beach over the last 22 quarter periods. Even in the case of improved properties, the depreciation percentage is not so much the structures themselves, but the underlying dirt.

The large oversupply of inventory, limited demand, and slow down of new housing starts continue to impact this market segment. The famous quote of Mark Twain’s “buy land, they’re not making it anymore” doesn’t really ring true at this time.

Have you seen any similar occurrence in your market area ?

The median sales price of single family properties in Bay County continued to slide downward for the 2nd Quarter of 2011. As noted from the trend line graph below, both 1st and 2nd Qtr periods declined from prior 12 month levels.

While market correction continues to take place, overall sales volume was up for the 2nd Qtr period and a significant reduction in the standing inventory took place during this Quarter period.

The second graph reflects existing inventory levels of this market segment, the sold inventory, and the existing supply in months based on the absorption of sales. As you will note, there is still an oversupply of inventory for the area.

If you are in need of appraisal services, trend line analysis, or any appraisal needs, please visit our main website.

The Summer is heating up here in Panama City and Panama City Beach. Now that the 2^nd quarter of 2011 is officially in the books, let’s see how the local market is performing. Today we will look at the Detached Single Family housing sector.

Sales volume was up for the Quarter period and the standing inventory was reduced by some 17%; certainly a good thing. Prices continue to correct from prior levels with the overall median price change being 15% less than the same period 12 months ago. The slow but continual absorption of the existing inventory will help this market from a recovery standpoint, although prices are likely to suffer in the short term.

How are inventory levels in your housing market?

If you are in need of appraisal services, please visit our main website.

Today’s post deals with the daily life of a Professional Real Estate Appraiser and how technology is used in the appraisal process.

Take a look at the chart below. As a buyer for a particular condo project on Panama City Beach, would this information benefit you with your purchasing decision? There are two things that are immediately evident from this graph.

1. All 5 of the analyzed projects have experienced market correction during the analyzed time period.

2. Some projects are doing better than others.

This graph was generated from within Excel which allows an appraiser to analyze large amounts of data. It is one thing to analyze three or four sales in the course of an assignment, but yet another, to analyze say 800 or 1200 sales during the course of an assignment.

If our firm can be of assistance to you with your professional appraisal needs, please feel free to visit us at our main website.

The weather is sizzling on Panama City Beach, so let’s take a look and see how the condo market is doing.

The Good News – Sales have continually increased month over month since the 1^st Quarter of 2011 with May being a phenomenal month as far as sales activity. Contrasting the first five months of 2011 to the prior 12 month period, overall sales volume in the condominium sector has increased 40%.

Of course, with all things you have to take the good with the bad. So here’s the bad. Prices continue to correct from prior levels. Contrasting the same five months of the current year to the prior 12 month lookback period, condo prices on a macro level have declined some 20%.

One thing I see that offers hope for this market segment is that the standing inventory is slowly but surely being absorbed. Of course, this is subject to change depending on additional REO/short sale inventory that may enter the market.

Enjoy your Summer. If you are in need of appraisal services for your condo unit, please feel free to visit our website.

Today’s Uniform Appraisal Dataset Tip deals with the handling of actual age vs. effective age in the sales comparison grid. Currently, some appraisers utilize actual age only and some appraisers report the age of the properties in the format of Ax /Ex.

Will this format require change with the implemetation of the UAD ?

The answer is YES.  Only actual age can be entered.

For appraisers using alamode software, here’s a sneak peak of the software in action.