Real Estate Market: Panama City Beach, Florida

Moving into a two bedroom, one bath 'doll house' on Panama City Beach- unknown to me, strippers had been the previous tenants. The old man who lived across the street never recovered. When he saw my roommate and I move in, he automatically took us for topless dancers as well. We never had the heart to tell him otherwise. [He was always so helpful.]

The house was built in the 1970's and still had the original lime green painted walls with orange shag carpet on the floor. There was probably a disco ball packed in the attic- I never ventured there.

All the walls were repainted, inside and out. Wall to wall carpet was placed even in the kitchen to cover the faux brick linoleum that laid there before. Homeowner Tip: Don't put light beige carpet in the kitchen where dogs, cats, and neighborhood kids congregate.

Ten years saw a lot of changes to my home and the neighborhood. The carpet was replaced with oak plank flooring which is a snap now that you don't use glue. Painting the outside so often, the neighbors never knew which color house to use in directions. "Turn at the well, yesterday it was a green house."

Beautiful oak, magnolia and pine trees were chopped down, in the woods that surrounded my house, to make room for mobile homes, sold on 50 foot lots. The woodland view of an occasional rabbit or land tortoise, from my kitchen window, was now a cellular tower. The fox and deer who would scamper through were no longer in sight. The possums weren't 'playing' dead.

There wasn't an 'off' season anymore. Seems the crowds had caught on to our sleepy village and proceeded to descend to the beach in droves. One asset Florida offers to home owners is a homestead exemption on your tax bill. A resident can claim one deduction of $25,000 from the home's taxable value and taxes owed is figured from this amount.

After Hurricane Ivan and Katrina many insurance companies went bankrupt. It became exceedingly hard to obtain and afford coverage in the sunshine state. Florida's largest private home insurer plans to drop 50,000 policies in considered 'risky' areas as they are up for renewal.

2005- saw the housing boom hit Panama City Beach. The median price for a home rose to $194,500, nearly double from the year 2000. The first offer, I received from a developer, who wished to put town homes on my two lots. He would sit parked in the street, gazing at my property, visions of profits dancing in his head. I didn't even bother countering his initial low ball pitch.

Lot values increased in my area, blocks from the bay, to $100,000 per lot. Typical summer cottages on the west end of the beach were selling for close to half a million dollars. Investors were flipping properties faster than the cooks at Ihop flip pancakes. I accepted the third offer that was just too sweet to resist, six months before the bottom fell out of the market.

Everyday, the local paper is filled with foreclosure and public seized assets auction notices. In 2007, the foreclosure rate is 78% higher from last year. I know of Realtors who didn't sell one property in 2006. Home prices are predicted to fall for 1-3 years. Analysts assure nervous home owners and prospective buyers the market will bounce back.

Panama City Beach's skyline can't be seen for countless, empty condos whose towering height rivals Babel. Bay County's population is projected to increase 65% over the next ten years. The St. Joe Corp, [Florida's largest landowner] is operating under the assumption, if you build...

To afford a $130,000 mortgage- an individual or family needs a household income of at least $45,000. The per capita income for this area, where the main employment is in the service industry, is $26,734. You don't need to be a math whiz to know this doesn't compute.

My advice to anyone thinking of buying or selling property is be very selective when it comes to choosing a Realtor. They should have experience with your area, keep in contact with you, and above all, stand their ground-with your best interest in the balance. It's a battle of the wills and deed- fight to keep the principal, at hand, in your grip.

I've been typing this from my rental apartment, undecided as yet, with buying again. The couple next door has been carrying on some kind of marathon of throwing themselves or objects against the walls. On the opposite end, the guy is testing the sub woofers in his speakers and the capacity of my eardrums. Wonder if those beach front high rises are sound proof?