Panama City's Star Looks Bright in 2010

The following article comes from the News Herald's Fri., Jan. 1, edition. We all love optomistic news like this!

SCARLET SIMS / News Herald Writer

PANAMA CITY — Panama City’s economy will be a shooting star during the next two years, local business leaders and economists said Thursday.

“The future is really bright for Panama City,” said Rick Harper, director of the University of West Florida’s Haas Center for Business Research and Economic Development. “2010 is the year to be pulling out of the economic trough. It is really the recovery year.”

This past year hit Bay County hard. Median home and condominium sale prices have plummeted, foreclosures are up and unemployment is high. Last month, Bay County reached 10.7 percent unemployment and it may go higher, economists say. Harper said Bay County’s economic woes are bottoming out. Next year will be better, especially the second half when the economy begins to rebound, he said.

Bright spots persisted in 2009 and will continue next year, said Beth Oltman, Panama City Beach Chamber of Commerce president. Area leaders pointed to Southwest as the No. 1 event impacting the business community in 2009. Southwest Airlines’ decision to be the low-cost carrier for the new international airport means Bay County is poised for growth, they said.

“We’re all living on the hopes of the new airport,” Oltman said.

Southwest is drawing the interest of other companies wanting to locate at the new airport’s industrial park, setting the stage for a better 2010. Harper said Southwest will draw tourists and military contractors.

“Southwest is going to be huge for Panama City and South Walton,” Harper said.

More companies mean more jobs, said Kim Bodine, Gulf Coast Workforce Board executive director, in an e-mail. She expects the local recovery to have fits and starts, but joblessness should lessen in 2010. Southwest’s decision increases the area’s visibility and opens the market for more visitors, which will immediately help the tourism market.

“It really broadens our reach,” Bodine said.

Bay County must work to bring more jobs to the area to recover fully from the worst recession in at least 20 years locally. Banks must be confident in loaning money, the county or state must offer incentives for new companies to locate in Bay County and the county must do what it can to be a business-friendly community, Bodine said. The airport is a great start, she said, but the workforce should still consider retraining or improving skills to meet future business demands.

In the short term, this spring’s tourism turnout is expected to be strong, Oltman said. Bodine hoped to expand existing businesses or bring in enough new companies to offset job losses when the tourism season ends.

“With the opening of the airport in May of 2010, this region will begin to see a surge of activity that we have probably never experienced and will assist us in a rapid recovery from the economic downturn,” said Bay County Chamber of Commerce President Carol Roberts in e-mail.

That growth probably won’t be strong until 2011, but when it hits, it will be faster than Tallahassee’s recovery and most of Northwest Florida, Harper said.

“I think the stage is set for robust growth in Panama City,” Harper said.

MAY THIS NEW YEAR BRING YOU GOOD HEALTH, HAPPINESS AND TERRIFIC REAL ESTATE VALUES! Karen

Karen Branham, REALTOR
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Coldwell Banker United, REALTORS
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Panama City Beach, FL 32408
Direct: 850-832-8626
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P.C. Real Estate: Sales Up, Prices Down

Hello everyone, in case you missed it, the following article was in the Nov. 18th New Herald and makes interesting reading for both buyers and sellers.

P.C. real estate: Sales up, prices down

Nov. 18--PANAMA CITY -- Panama City is better off than some other areas in the state hard-hit by the recession, but recovery will be slow, experts say.

"I really think the future of Panama City is looking better than a lot of other places," said Tim Becker, University of Florida's Bergstrom Center for Real Estate Studies director.

At 8.9 percent, unemployment locally remains lower than the state's 11 percent average. While other areas had a narrowly defined economic base, Bay County has tourism and military, Becker said. Plus, the area had less commercial building during the early 2000s, which helped the area when the real estate crisis hit, Becker said.

Property is selling again, too. Panama City's existing home and condominium sales shot up this quarteroverlastby12and13percent, respectively, according to Florida Association of Realtors numbers released last week. Increases are even higher compared to a year ago. Panama City existing condo sales were down 6 percent during the second quarter but increased 28 percent this quarter over 2008.

Sales are up, but median prices are down. The median home price was $151,500 for October, down about 12 percent from the same time last year, according to Metro Market Trends, a data collection and analysis company. That also is lower than the median price of $154,400 reported in September.

Home prices appear to be reaching the bottom, said Marla Martin, Florida Association of Realtors spokeswoman. Sales are up, in part, because of distressed sales and the tax credit for new homeowners. Bay County is working through a glut of distressed property, said Darren Haiman, Bay County Association of Realtors president-elect.

Until unemployment numbers improve, the economy is not recovering, said Alex Charfen, The Distressed Properties Institute CEO and co-founder. Realtors expect a swath of homeowners with loan payments set to balloon next year to file for foreclosure.

No one knows for sure what will happen, Becker said, but with Southwest Airlines choosing the new international airport, the area is poised for a better recovery, Becker said.

Companies are looking to locate in Panama City, said Janet Watermeier, Bay County Economic Development Alliance executive director. The Nemo Project is expected to bring hundreds of jobs in the next three years. At least one company has shown interest in Port Panama City's new intermodal distribution center.

Homes are more affordable than ever and the community is pulling together to bring in high-wage jobs, Watermeier said.

"This won't happen overnight," Watermeier said. "Hopefully, this is going to happen slow and steady."

ON BEHALF OF MY TEAM AND FAMILY, I WISH YOU ALL A WONDERFUL, SAFE THANKSGIVING HOLIDAY! I AM THANKFUL FOR YOUR FRIENDSHIP, BUSINESS AND REFERRALS. Karen

Karen Branham, e-Pro, SFR, Associate Broker
THE BRANHAM TEAM
"We Make Dreams Happen"
Coldwell Banker United, Realtors
726 Thomas Drive, Suite B
Panama City Beach, FL 32408
Email: karen.branham@cbunited.com
Website: www.karenbranham.com
Direct: (850) 832-8626