Panama City, FL housing market

Is it a buyer’s or seller’s market in Panama City, FL?

It is considered a balanced market right now. Housing inventory is up since last year, which means supply is less constrained. Mortgage rates are 6.7%, making the average house payment $2,253, which is $424 higher than a year before.

Total months of housing supply available for sale is 5.1 months, up 41.7% from 3.6 month(s) in January 2024.

Months of Supply

The Months of Supply housing metric is an estimate of how long it would take to sell all the homes for sale relative to the number of homes sold each month. Historically, 5 to 6 months is the average. You may also hear this metric referred to as the "absorption rate."

Lower months of housing supply typically signal a seller’s market whereas when months of supply is greater than 6 months typically signal a buyer’s market.

Sales to Listing Ratio

Sales to Listing Ratios are an indicator of supply and demand. It is all the completed sales in the past month divided by the total number of active listings.

In a balanced real estate market, the total number of home sales to active listings ratio is between 0.12 and 0.2 while markets with a ratio higher than 0.2 favors seller’s, as homes are selling fast and there is limited inventory, while markets below 0.12 favor home buyers because there is a larger supply of homes to purchase.

Selling a house in Panama City, FL

Home values have increased by 5.6% since last year, and the number of days it takes to sell a home has increased from 44 days in January 2024 to 82 days in January 2025.

The best time to sell your home in Panama City is in May, when homes sell fastest and for the most money.

Sellers typically pay the commission of both the listing and buyer’s agents, which typically total 5-6% of the home sale price. That’s $17,640 paid in commission to the real estate agents. You’d also need to factor in closing costs, plus other fees and your mortgage payoff amount, to calculate the net proceeds from your home sale.

Buying a house in Panama City, FL

Homes in Panama City have a median price of $294,000, which means you’ll need $29,400 for a 10% down payment. Housing costs have increased 5.6% in the past year. When you’re several months out and have your down payment saved, make sure to get pre-approved for a mortgage and find a real estate agent.

Home values are only one part of the home affordability equation. When buying a house in Panama City, don’t forget to also account for closing costs, which are typically 3-4% of the home cost. In addition to a down payment of $29,400 you should have $11,760 as well as budget for cash reserves, moving expenses and ongoing homeownership costs for home maintenance and repairs or HOA fees.

Panama City home values are 27.5% cheaper than Panama City Beach and 39.7% cheaper than the state median home value.