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New Buyer Profile Emerges on Gulf Coast

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CAUSE and EFFECT  

We all know the theory of “cause and effect” and it’s never been more apparent in the changing buyer profile for resort condominiums on the Alabama gulf coast.  Up until 18 months ago, the largest percentage of buyers were primarily investor oriented that sustained negative cash flow in anticipation of appreciation that was unrealistic. 

MULTIPLE PROPERTIES

Most of these  buyers owned multiple properties in Gulf Shores and Orange Beach, and what is now apparent is that there never were enough “real” buyers to support the number of new condo’s that were developed.   The significant inventory of condo’s and single family homes has caused  further downward pressure on prices resulting in more realistic value levels.

MORE STABILITY  

In the short term this market situation has caused a lot of anguish for many owners, but the future overall health of this Gulf of Mexico real estate market will be much stronger and more affordable to many buyers who were priced out of the previous market.  The new buyer brings financial stability to the south Baldwin coast with a larger equity position in their purchase and is more of an end user than past buyers.  

WHAT BUYERS WANT 

The “new profile buyer ” looks closely at the level of cash flow, association fees, quality of the development, and what amenities are offered to attract year round renters.  Also, of significance, is the age of the development – with a limited number of buyers, high quality and updated finishes are important.  

NEW DEVELOPMENTS 

Orange Beach and Gulf Shores both have a large number of new developments such as Bella Luna, Caribe, Turquoise Place, and Crystal Tower which offer state of the art amenities and access to the white sand beaches of the Gulf of Mexico.  So with the era of the “new buyer”, the Alabama gulf coast real estate market has evolved like the shifting sands and gulf currents, a promising sunrise and a colorful sunset.   

   dsc_0047-web.jpg For more information visit: Des Gattt at http://www.gulfshoreslife.com/

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December 17, 2007 - Posted by | alabama, Baldwin County, gulf of mexico, Gulf Shores, orange beach, perdido bay, real estate | , , , , , , , , , , ,

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