Despite what you may hear, the real estate market on the West End of PCB is now healthy. It has returned to a normal and balanced market. Homes are selling (just without bidding wars), and buyers have had time to breathe – but this could change rapidly and turn back into a sellers’ market if interest rates drop and the number of buyers increases. Since the first week of August, our company has witnessed a substantial increase in number of interested buyers.
A return to balance isn’t a downturn—it’s a reset. As Warren Buffet once said “The rearview mirror is always clearer than the windshield.” While the frenzy of 2021–2022 was intense, we now have clarity—and a steadier road ahead.
Real estate will always have fluctuations and the market will always strive to balance itself. But the one reality that persists is that, in the long run, Real Estate Always Goes Up.
While the condo market may continue to face a tough market due to unanticipated special assessments, the single-family, 2-to-4-bedroom homes show a stunning resilience in the face of inflation, the economy, and high interest rates.
Looking at the graph above, a few facts stand out:
High-End Homes: Sales of homes in the $1 million to $3 million range happen from time to time. They usually are “new builds” within a block or two of the beaches.The good news is that high-end 2-to-4-bedroom homes have a positive effect on the market prices overall; they help move up the West End market. Streets that previously featured older beach cottages and mobile homes are now boasting beautiful new homes.
Median Sale Prices: As shown in the graph, Median sales prices have remained remarkably stable since the pandemic without any notable dips in sales prices. Homes that are priced right are selling, and sellers are receiving a reasonable return on investment.
Number of Homes Sold per Month: It is basically flat over time – An average of nine (2-to-4-bedroom homes per month have sold on the West End over the past 5 years. Three (3) homes sold represent the lowest month and nineteen (19) sales are the highest month.
What About the Current Listings? As of July 1, 2025, there were 58 single-family, 2-to-4-bedroom home listed for sale in the West End of Panama City Beach. Their median list price was $700,000. As I explained in the previous newsletter, the number of days on the market is higher, but homes that are priced right are selling.
What About Land Sales? As the chart below shows, with the exception of a few spikes, land sales have been relatively stable over the past 5 years. A few prime locations on the beach sold for over $1,000,000. The number of lots sold is flat and the prices are averaging out at $250,000 each.
Population growth and families moving to Florida are causing an uptick in new construction homes, and the West End land sales can be for spec homes by a builder or to specific buyers seeking to build their dream home close to the beach.
It’s also notable that some older homes in total disrepair are being purchased and demolished to utilize the lot for new construction. This is the likely scenario that is occurring now in the neighborhoods of Laguna Beach, Riviera Beach, and Kiska Beach – all neighborhoods without homeowners’ associations.
Key Takeaways:
- 2025 is the year of a balanced real estate market on the West End of Panama City Beach. This is the natural ebb and flow of the real estate market and a return to the “normal” pre-pandemic levels.
- West End single-family homes are selling – the sale may take a little longer than during the pandemic days, and at prices more stable. Sellers can realize a good return on investment in the transaction.
- Don’t worry if you own an older home in disrepair! You still have the land which is valuable and desirable to buyers looking to build their new vacation home.
- Builders will buy building lots in order to deliver to their customers and investors, thus driving up their values.
