Real Estate Supply and Demand
For some time now, there has been a general feeling in the condo market in Gulf Shores and Orange Beach, that things are on the road to recovery. We have seen fewer and fewer foreclosures, sellers standing firm on their prices, and little by little, prices going up.
Supply and Demand is a basic economic principal. The price of a product (a condominium unit) is determined by a balance between production (or in our case Availability) of a product, and the desires of those with purchasing power.
The ACRE division of the University of Alabama just published the May Condo Report for Baldwin County, Alabama. You may view it here: baldwin_county_condos_April_2013.pdf It is pretty clear to see, after reviewing the report that the majority of the indicators show improvement over the past several years. You will notice that the Average Price and Median Price for condos has dropped a good bit since May of 2012. I wouldn't let this worry you. One of the largest condo complexes in our area Turquoise Place in Orange Beach, sold 106 units in 2012 at a cumulitive price in excess of 118 million dollars. I have to say, it skewed the numbers a bit.
If you are an investor, looking for a steal, we might still be able to find you one. A great deal will be easier to find, and there are still opportunities for positive cash flow investments here at the beach. Rentals are breaking records left and right this year, and if you buy now, you can still take advantage of a good portion of the rental season.
If you are a seller and you have been waiting patiently (or not so patiently) while the "fire sales" ran their course, now would be a great time to get back into the market. Because of the decreased inventory, you may be able to be the only (name the size of your condo) for sale in your building.
The best way to know if the time is right for you to buy or sell is to get in touch with us. We can give you an indepth analysis of the condo you wish to buy or sell and help you make the decision if the time is right for you to buy or sell.