Housing prices in Bay County decreased by 7% after recent political and economic climate

PANAMA CITY, Fla. (WJHG/WECP) — Bay County has plenty to attract homebuyers, including its sandy white beaches and small-town feel, but this February, the real estate market has slowed. From 2024 to 2025, the average home price in Bay County dropped by 7%, while total sales volume declined by 23.2%.

“What we’re seeing is because of the political climate, because of the economical climate, people are a little more reserved on buying, houses are sitting longer, and so because homes are sitting longer, we need to negotiate prices down more, and that’s where you’re seeing price numbers drop,” said Ariane Johnson, 2025 President of the Central Panhandle Association of Realtors.

According to the Central Panhandle Association of Realtors, from February of 2024 to now, housing prices in Panama City are up by 5%, but in Panama City Beach, housing prices are down by 13%.

The average time a home stayed on the market this past month in Bay County reached 102 days, an 18.6% increase since 2024. Listings are up by 14.8%, but closed sales have dropped by 13.5%. According to CPAR, insurance affordability has been a major factor in this decline.

“Those insurance costs are increasing their payment significantly, so they’re having to look for something that’s maybe priced a little lower or negotiate further down to be able to comfortably pay the full payment,” said Johnson.

The Central Panhandle Association of Realtors president advises sellers to price their homes correctly based on the current market. She urges patience, as homes are taking longer to sell right now.

To stay up to date on all the latest news as it develops, follow WJHG on Facebook, Instagram and X (Twitter).

Have a news tip or see an error that needs correction? Email news@wjhg.com. Please include the article’s headline in your message.

Keep up with all the biggest headlines on the WJHG News app, and check out what’s happening outside using the WJHG Weather app.

Copyright 2025 WJHG. All rights reserved.