Will the BP Oil Spill Impact my Panama City Beach Condo ?

by Wendell Browne on June 9, 2010

I’m sure many of you folks that own a condo on Panama City Beach can’t help but wonder how the current oil spill fiasco will impact the value of your property. After all, this area is not called the World’s most beautiful beaches for nothing, right ?

That’s certainly a great question and for now, the answer is unknown. The condo sector on Panama City Beach continues to correct specifically due to local and economic conditions. At some future point, the oil spill may have to be considered into the equation; if it were to reach this area.

I am keeping my fingers crossed that this doesn’t happen. Over the last week, I have ventured on the west end of Panama City Beach, and I am here to say, the water has been absolutely beautiful. It has that emerald blue green contrast that you typically see around Destin. No tar balls, no sheen, just beautiful water and white sand.

The chart below reflects a -15% decline in average sale prices and a -11% decline in the median sales price contrasting May with the prior 12 month period. These numbers indicate a continual decline and softening in the condo sector of Panama City Beach.

condo-may

The most promising indicator at this point is the 18% decline in inventory levels over the last 12 months. Before this market segment can be stabilized, the over supply of inventory and curtailment of foreclosures will have to diminish.

For now, at least, we have one foot going forward.

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