The Alabama Coast continues to rise in its popularity as a vacation destination. Demand for vacation condo rentals and second homes fuels most of the sales. Other components contributing are new
Condo Market Update August 2017
The Alabama Coast continues to rise in its popularity as a vacation destination. Demand for vacation condo rentals and second homes fuels most of the sales. Other components contributing are new industry and entertainment venues that have led to increased job leads in Baldwin County as it continues to soar in its growth.
July 2017 painted a vastly different landscape for the Condo Market, covering the Alabama Gulf Coast, Foley and Perdido Key. Compared to 2016, property is moving at a faster rate. At the beginning of the month of July, only 578 condos were listed for sale, whereas at the beginning of July 2016, as many as 800 were listed. The market in 2016 provided the buyer with a more diverse choice whereas this year’s listings are less so. In the past six months, the supply for 2017 is in desperate need as demand rises while supply is on a downward spiral.
Condo sales on a monthly basis has drastically improved compared to 2016 and earlier periods with 920 total units sold within the first six months of 2017. Average prices have also climbed. In 2016, the average condo cost $305,642.00. Now halfway into 2017, the average price for condos has increased to $308,975, (a fifteen percent increase). The median price rose from $280,000 in 2016 to $308,450 in the first six months of 2017. Increasing the price per average square foot by nearly $20.
The amount of units Pending during July were around 373 units. That’s huge! With an increase of over 30% since July 2016.
Demand is far outweighing supply. At this rate, prices should continue to increase until sales taper off during the slower fall months, or at least if this year follows the same patterns as in previous years. However, with all the information on hand for the last six months, the rest of 2017 could be just as unpredictable as the beginning.
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