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Gulf Shores Condos – Orange Beach Condos – Real Estate Service Providers

Orange Beach and Gulf Shores Real Estate Update

Here is the current market picture for Baldwin County and the Alabama Gulf Coast:

1.  The market is purely price driven – and lots of recently built inventory.

2.  Investors are looking at income vs cost ratios.

3.  A 600,000 property will have to generate 50,000+ rental income to attract investor interest.  As example, we just sold two newly constructed, high end cottages at the Beach Club.  Our most recent sale at 665,000 and will generate 60,000 in rental income.

4.  One 600,000,  condo is priced at 333/per sq ft.  In contract, a similar sized unit at Caribe, with all of it’s first class ameniities and strong rental program, just closed at 575,000 or 323/per sq ft.

5.  As nice as a unit may be, when compared to a Caribe unit built in the last two years, you can see how competitive the current market is.

6.  It really depends on how motivated you are to sell your unit – the lower the price, the better chance of selling.

7.  It’s apparent now that we are going to be in a price driven market for at least the next two – three years.

8.  If you really want to sell, you will have to go to the lower end of the prices of similar units.

9.  Your probable buyer will be primarily an end user and there is a lot of inventory to choose from.

10. Keep in mind that a 3 bedroom unit in Island Royale, gulf front built in 2004, just sold in Oct. for 505,000.

11. As much as we promote over the internet and to other agents, the number of buyers remains limited among all agents in the area.

12. Another comp is Sanibel on West Beach Blvd. across from the beach.  Brand new, nice floor plans, quality construction, low fees – selling at 275/sq ft.

13. There are two main motivators in selling today and for the next few years: PRICE and TERMS.

Thanks,

Des Gatti

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November 28, 2007 - Posted by | alabama, Baldwin County, Gulf Shores, orange beach, real estate | , , , , ,

2 Comments »

  1. Do you have any idea how they’re doing today? Hopefully better, but I’m going to guess that they aren’t. Well thanks for the information anyway.

    Comment by Alabama Mama | September 12, 2008 | Reply

  2. Excessive prices have adjusted downward and those sellers that price aggresively are finding buyers.

    Comment by gulfshoreslife | September 12, 2008 | Reply


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