Panama City Beach is a coastal housing market that mixes seasonal condo demand, second-home buyers, and local residents who live and work year-round. Tracking the Panama City Beach market matters because the area’s beachfront inventory, hurricane-driven rebuilding, and tourist economy all push price and inventory swings faster than inland Florida markets. 

If you are looking at homes for sale in Panama City Beach, this report pulls together the latest pricing, sales, and value trends so you can see how home prices and market activity in Panama City Beach are moving in 2025.

What is the Current State of the Panama City Beach Real Estate Market?

Panama City Beach’s market is stabilizing after rapid growth and a partial correction. Year-to-date median sale price was about $379,500 in October 2025, while monthly sales and longer days on market show cooler buyer activity. 

Inventory is higher than two years ago and price adjustments are more common, widening gaps between list and sale prices in some ZIP codes; sellers seeking a quick sale should price competitively, and buyers often have room to negotiate.

Average List Price

Across Panama City Beach, median list prices vary by neighborhood and property type; Zillow reports a median list price near $450,900, driven by premium beachfront condos and newer single-family homes while inland and older single-family homes sell at lower medians, and local brokers note modest to negative list movement in some submarkets in October 2025 that creates negotiation room for buyers in specific pockets.

Average Sales Price

Redfin reported a median sales price of about $379,500 for Panama City Beach in October 2025, only slightly above the same month last year; because closed sales typically lag list price trends by weeks to months, the median sale price is the better measure of realized value. 

Average sale price can swing month to month and a handful of gulf-front condo or large single-family closings can push it up; so median sale price remains the steadier gauge for trend analysis.

Number of Homes Listed

Inventory counts are larger than they were during the 2021–2022 squeeze. Zillow’s city snapshot lists more than 2,300 homes for sale in Panama City Beach as of October 31, 2025, signaling a shift toward a more buyer-accessible market compared with the low-inventory years. Higher inventory partly reflects more sellers bringing second homes or investment condos to market.

Local MLS and CPAR reports for October 2025 also show an uptick in new listings compared with last year, though the pace of new supply varies by ZIP code. However, waterfront and newly developed submarkets still see fewer active listings relative to demand.

Number of Homes Sold

Redfin reported roughly 100 homes sold in Panama City Beach in October 2025, up from 84 the year prior, indicating a modest rebound in closed transactions for that month. Keep in mind monthly sold counts are sensitive to seasonality and short-term shifts in buyer interest.

On a YTD basis the number of homes sold remains below the volume seen in the 2019–2022 window when relocation demand and cheap financing lifted turnover. That reduced turnover partly reflects homeowners holding lower-rate mortgages and a cautious buyer pool when mortgage rates were higher earlier in 2025.

Average Days on Market

Days on market (DOM) are longer than during the last tight market cycle. Redfin shows an average of about 107 days on market for October 2025, down from 132 days last year in that Redfin slice, but other data providers report ZIP-level DOMs ranging from roughly 56 days in some inland ZIPs to over 110 days in higher priced beachfront ZIPs. Use ZIP-level DOM for local comparisons because city averages can mask this spread.

Price Drops

Price cuts rose in 2025 compared with the low-inventory years; many listings show one or more price reductions before contract. Zillow’s price-reduced listings and local broker reports point to cumulative price reductions on certain listings, especially inland single-family homes and older condos that were priced at premiums relative to condition or location. 

How Have Home Values Changed in Panama City Beach?

Overall, Panama City Beach home values have moved from rapid appreciation into a more mixed landscape in 2025. Coastal condos and newer construction pockets still show relative strength, while inland and older stock softened since last year, so reviewing one-, three-, five-, and ten-year changes helps separate short-term volatility from longer-term market trends.

One-Year Change

Zillow reports a one-year value change of about -6.8% for Panama City Beach through October 31, 2025. This shows a decline from the recent peak. That number reflects the city-wide Zillow Home Value Index (ZHVI) for the 12 months ending in October 2025.

Three-Year Change

Over a three-year horizon the market shows net gains compared with pre-pandemic norms, driven by strong appreciation in 2020–2022 followed by a correction in 2024–2025. Local MLS trends and regional reports indicate three-year growth remains positive in many Panama City Beach neighborhoods even after the recent one-year decline; consult ZIP-level CPAR or MLS reports for precise three-year percent figures by neighborhood.

Five-Year Change

Five-year measures show substantial gains for the city in aggregate. Stacker’s compilation of Zillow data indicates a roughly +34% five-year increase in typical home values for Panama City Beach through late 2025, a reminder that longer horizons still show strong appreciation despite recent short-term downshifts. 

Ten-Year Change

Ten-year change reflects major structural shifts in the market like post-hurricane rebuilding, new construction, and rising coastal demand. 

Exact ten-year percentages vary by micro-market; for a reliable neighborhood-level ten-year comparison consult the CPAR or county appraisal roll and compare ZHVI or MLS time-series for your ZIP code. The rebuilding after Hurricane Michael in 2018 is a key factor that lifted values in many Bay County neighborhoods over the decade.

Local Metrics and Factors That Move Prices

Prioritize metrics that show real movement in the FL housing market, such as median sale price per square, sale price per square foot, and per square foot in Panama, rather than headline house price changes. Use the average Panama City sale price and the sale price of a home for context, but compare neighborhoods with square foot in Panama City and median sale price per square to smooth out swings from a few high-value gulf-front closings.

Watch these indicators closely:

• Median sale price per square and sale price per square foot, to compare relative value across ZIPs.
• Per square foot in Panama and square foot in Panama City, so you can normalize prices for size and product type.
• Homes sold in October, sold recently, and sold in October this year counts, plus homes sold year-to-date, to spot short-term momentum.
• Days on the market compared with last month and average DOM, because shifts in days can signal changing buyer urgency.

How Are Mortgage Rates?

Mortgage rates have eased from mid-2025 highs; Freddie Mac’s PMMS shows the 30-year fixed averaged about 6.23% for the week ending November 26, 2025, which has nudged some buyers back into the market. Quote and lock practices vary by lender and borrower profile, so get a personalized rate before making decisions.

Forecasts for the next 3, 6, and 12 months depend on inflation and Fed policy; many observers in late 2025 expected modest declines if inflation cools, with a possible move toward low-6% territory within 6-12 months. Those scenarios are probabilistic and sensitive to Treasury yields, so buyers should weigh timing against their own financial readiness.

Is it a Buyer or Seller’s Market in Panama City Beach?

As of late 2025 the market leans toward a balanced to mild buyer advantage across much of Panama City Beach. Elevated inventory, longer days on market, and more frequent price cuts give buyers negotiating room, though scarce gulf-front inventory and new-construction can remain competitive in certain price bands; well-priced, well-staged waterfront listings still attract competitive offers.

The market’s character varies by property type and ZIP code—condo investors face different dynamics than inland single-family buyers. Agents and buyers should read local supply and pending activity at the micro-market level to understand competitiveness and pricing.

FAQs

How did Panama City Beach perform in October 2025 compared with October 2024?

October 2025 showed a small uptick in closed sales and a roughly flat median sale price versus October 2024; Redfin reported a median near $379,500 and about 100 homes sold that month. Month-to-month figures are sensitive to large condo closings and seasonal swings, so treat single-month changes as short-term signals rather than definitive trends.

What neighborhoods held value better through 2025?

Areas with newer construction near the Gulf tended to stay steadier last year, especially the condo buildings and elevated single-family sections that buyers already watch closely. Some of the older inland pockets, particularly where updates have been deferred, saw softer numbers. The coastal ZIP codes generally posted higher medians throughout 2025, while a few inland ZIPs dipped as inventory climbed.

How does climate and flood risk affect pricing?

Flood risk and updated FEMA maps are increasing construction, elevation, and insurance costs, which can reduce buyer interest in low-lying parcels. Check FEMA/NFHL and local planning pages for property-specific flood-zone status and insurance impacts before buying.

Are homes often selling over list price now?

No. Only a small share of sales are above list price city-wide in late 2025; most sales are at or below list as sellers adjust pricing, with bidding limited to well-located waterfront or turnkey listings.

How do local schools or community resources factor into price?

Schools and public resources do play a role in overall demand, though they tend to sit behind bigger drivers like proximity to the beach, building condition, and flood or insurance exposure. If being close to certain campuses or amenities matters to you, it helps to look at district information separately and treat it as one piece of the larger value picture.