If you’re thinking about buying or selling a waterfront condo in Orange Beach or Gulf Shores, it’s important to know how the current market stacks up against recent years. The first few months of 2025 have brought noticeable changes to inventory, days on market, and absorption rates, giving us clear insight into which way the tide is turning.

We’ve broken down the local numbers and included expert insight from national data sources like the National Association of REALTORS® to help you make the most informed move in today’s evolving condo market.

📊 Local Market Overview: Inventory & Sales Trends

From 2021 to 2025, the number of active listings for waterfront condos in Gulf Shores and Orange Beach has steadily increased, with a dramatic rise starting in mid-2023. Meanwhile, monthly condo sales have declined, particularly in 2025, pointing to a market that has shifted in favor of buyers.

Sellers: Expect more competition and longer days on market.
Buyers: More options and negotiating power are now on your side.

Waterfront Condo Inventory Jan 2021 – May 2025

💰 Pricing Trends: Holding Steady, but Plateauing

While median and average condo prices have generally increased since 2021, price growth appears to be flattening in early 2025. This aligns with national condo trends reported by the National Association of REALTORS®, which noted that while condo prices are up slightly year-over-year, buyer demand is slowing due to elevated interest rates and increased inventory in vacation-heavy markets.

⏱️ Days on Market: Sales Are Slowing

In 2025, the average Days on Market (DOM) for waterfront condos has reached its highest point in five years. Most listings are now sitting for over 130 days before going under contract—more than double the DOM from 2021.

Key Insight: Condos in excellent condition and well-marketed are still selling faster, but overall buyer urgency has slowed.

📉 Absorption Rate: Firmly a Buyer’s Market

The absorption rate, which shows how many months it would take to sell all current listings at the existing sales pace, has now climbed above 15 months in 2025. This is a significant increase from the more balanced 4–6 month rate we saw just a few years ago.

Market Absorption for Waterfront Condos – Jan 2021 – May 2025

This means the Gulf Shores and Orange Beach condo market is now clearly in buyer’s territory, especially for second homes and vacation rentals.

🧭 What the National Data Says

According to the latest NAR Generational Trends Report, Millennials and Gen X are increasingly interested in vacation and investment condos, but they are price- and rate-sensitive. At the same time, the share of cash buyers—especially Baby Boomers—has risen, which is reflected in coastal markets like Orange Beach.

Key National Condo Trends (NAR 2025):

• Condo prices are up 4.6% nationally year-over-year.
• Sales volume is down due to affordability concerns and rising inventory.
• Coastal and resort markets are seeing more days on market and greater seller concessions.

🏖️ What This Means for You

If You’re Buying a Waterfront Condo:

• More inventory gives you greater selection and leverage.
• Be cautious, but don’t wait too long—values are still holding strong in premium locations.
• Consider a long-term hold, especially if purchasing for investment or rental income.

If You’re Selling a Waterfront Condo:

• Pricing and presentation are critical in a competitive market.
• Professional photos, staging, and experienced condo marketing can shorten DOM.
• Partner with a knowledgeable Gulf Shores realtor or Orange Beach realtor who specializes in condos.

Work With a Waterfront Condo Specialist

At Lake & Coast Real Estate Co., we help buyers and sellers navigate the unique nuances of the Orange Beach and Gulf Shores condo market. From beachfront high-rises to bayfront escapes, we understand the pricing, rental dynamics, HOA considerations, and seasonal selling patterns that impact waterfront condos.

📍 Looking for expert advice on Orange Beach condos for sale or Gulf Shores condos for sale?
📞 Contact us today for a free consultation or property analysis.