A year ago, the real estate boom was in full swing.  About 17,500 units—mostly high-rise condos—were ready to come on the market.  In some cases, a condo would double in value during the time it was being built.  Some developers even sold the same unit twice.  For instance, a developer would sell a unit for US$500,000, and then sell it a second time for US$1 million.  If the first buyer complained, the developer would refund his or her deposit.

Fast forward 12 months…prices are in free-fall.  Many buyers who put down deposits are simply walking away from their units.  Numerous high-rise condo towers are empty.  Foreclosure is inevitable, and several complete towers are now up for auction.  You can buy a nice apartment or condo in Panama City for US$80,000 today that a year ago cost US$500,000.