Local House Prices Decline the Steepest in the State

Housing prices around Panama City have skyrocketed over the last few years, but now there is some good news for potential buyers.

Prices are starting to come back down.

According to the Florida Realtors Association, Panama City had a 10 percent drop in housing prices from June 2005 to June 2006, the highest in the sate.

The average house price fell from $243,000 to just under $220,000.

Panama City isn't alone. Fort Walton Beach also experienced a decline, with prices there dropping six percent.

The Bay County Association of Realtors says it’s not surprised by the decline because the housing market is finally balancing out.