2026 Mid-Year Market Report | Bay County

A coastline is easy to judge by its water’s edge. That is where the highest prices are found, where the photographs are taken and where attention naturally settles. It is tempting to let gulf-front stand in for the entire market. Bay County at midyear is a reminder that it rarely does. The market’s greatest strength this year did not come from its most exclusive addresses; it came from everywhere beyond them.

Across the county, the communities built for everyday living carried the market forward. Home sales in Panama City Beach climbed into the 260s for the quarter, well ahead of the past year, while the condo market more than doubled its closings despite a shrinking supply of available units. Sweetbay’s home sales doubled, with buyers paying close to full asking price. On St. George Island, closings also roughly doubled, and homes that lingered a year ago found buyers in nearly half the time. None of this reflects speculative enthusiasm. It reflects a healthy market where buyers and sellers are finding common ground.

Just as notable is what those gains did not produce. In most communities, stronger activity was not accompanied by runaway appreciation. Price per square foot — the market’s most consistent measure of value — remained remarkably stable. Panama City Beach recorded significantly more sales while values held nearly unchanged. In Sweetbay, average sale prices rose even as price per square foot eased slightly, reflecting a different mix of homes rather than a surge in values. Where both measures moved higher, as they did on St. George Island, the appreciation was genuine. The broader pattern is one of expansion, not excess.

See More in the Full Report outlining the Bay, Franklin and Gulf County markets, below