The Florida Panhandle is getting two new communities from a national homebuilder as prices in the area continue to rise for single-family homes.
In November, Miami-based developer Lennar announced the opening of Magnolia Ridge in Panama City and Cross Creek in Freeport, roughly 50 miles northwest.
Magnolia Ridge features 134 homesites, and Cross Creek includes 63. Homes for both communities are available in six designs with one- and two-story models ranging from 1,474 square feet to 2,000 square feet, with prices for both starting in the low $300,000s.
Sitting on Florida’s Emerald Coast, Panama City “has a burgeoning arts community, a developing downtown and several marinas and docks to access [St. Andrew] Bay,” according to a description on Homes.com.
Freeport dates back to sailors and fishermen who settled the town in the 1830s. The city has attracted an explosion of new developments in recent years, including the 3,000-acre, master-planned Hammock Bay community.
"Magnolia Ridge and Cross Creek, plus other communities coming soon, mark a significant milestone for Lennar as we expand our presence along the Florida Gulf Coast," Rob Donnelly, Panama City division president for Lennar, said in a prepared statement.
Rising prices face challenges
The median home price in metropolitan Panama City was $370,000 in October, a 2.8% increase year over year, according to Homes.com. That was primarily driven by single-family home sales with prices up 5.1% to $389,900.
Townhouses saw a 1.6% annual rise in median price to $299,900. Condos, however, were down 0.5% to $390,000.
“Panama City's housing market has seen prices increase by nearly 3% in the past year despite headwinds related to population growth, the cost of insurance and the availability of coverage,” said Lisa McNatt, director of analytics for the region for Homes.com. “Condo pricing is under pressure due to HOA fees and assessments, which is deterring some would-be buyers."