This is an important article that clearly shows what can happen if prices get out of control and there becomes a glut in the market. coincidentally it has the name Panama in it.
PANAMA CITY BEACH, FL, United States (UPI) -- The old adage that whatever goes up must come down is proving true for the once-hot condo market in Panama City Beach, Fla.
Real estate agents in the town report a backlog of more than 2,200 units for sale -- with more than 250 of them listed for $700,000 or more -- the Atlanta Journal-Constitution reported.
A year-and-a-half ago, only a handful of beach units were on the market.
The local appraiser`s office said median prices for condos sold in Bay County, Fla., slid 12 percent in the first part of this year compared with 2005. To add to sellers` problems, 1,400 new units are expected to be completed and on the market by the end of the year.
Local residents attribute the slump to a number of factors including rising interest rates, soaring insurance costs and the fear of hurricanes. But the law of supply and demand may also be a major factor.
It seems Panama City Beach experienced a building frenzy that simply outpaced the number of speculators, the newspaper said.
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