Alabama’s Gulf Coast, a gleaming gem nestled along the Gulf of Mexico, beckons with its easy access via I-65, captivating beaches, serene lifestyle, and premier opportunities for fishing and golfing. This allure is increasingly drawing individuals to explore the coastal living options Alabama offers. With an impressive array of over 150 waterfront condominium complexes scattered across beaches, bays, bayous, lagoons, and rivers, Alabama’s coast presents a diverse portfolio of waterfront residences catering to the nuanced preferences of discerning buyers. At Lake & Coast, our expertise in the waterfront condo market equips us with a deep understanding of the nuances involved in buying or selling these prized properties along Alabama’s Gulf Coast. Begin your journey with Lake & Coast Real Estate Co….to start your search or sale contact us today.

Alabama Gulf Coast Condo Market Analysis:

Reflecting on my year-end report for 2023, we have transitioned into a buyer’s market for waterfront condominiums along the Alabama Gulf Coast. The absorption rate, which reflects how quickly properties are sold, saw a steady increase from an average of 4 months in 2022 to 7.5 months in 2023, concluding the year with a 10-month supply of condos. The trend continued into the first quarter of 2024, with the absorption rate reaching an average of 12 months and culminating in March with a 14-month supply of waterfront condos on the market.

Despite the relatively swift sale of condos within an average of 82 days, for sold listings, in the first quarter of this year, the market has seen a consistent rise in the average days on the market over the past two years. This trend is anticipated to persist as new listings significantly outnumber sales. With 602 active listings and only 171 properties sold in the first quarter, it would require the remainder of the year to deplete the current inventory, assuming no additional condos are listed and all other market conditions remain stable. Given these dynamics, I project that inventory levels will remain elevated for the foreseeable future, with sellers increasingly willing to negotiate prices as properties linger on the market.

2024 Q1 Waterfront Condo Market Insights

• Trend in Listing Prices: Witness a notable shift in the real estate landscape as the average listing price for waterfront condos sold in the first quarter of 2024 dips to $736,779 from $843,661 in Q4 2023. Despite the larger inventory, sellers maintain a strong position with sale prices closely aligning with listing prices at an impressive 97%.

• Sales Performance: The market shows 171 properties finding new owners in Q1 2024. The period also saw an uptick in listing activity with 334 new listings, marking a significant jump from 221new listings in the preceding quarter.

• Inventory Overview: Starting the year with 335 listings, the market expanded to 602 active listings by end of March 2024. This influx of new listings outpacing sales suggests a stabilization in prices for the near term, offering potential buyers and investors insightful data for the shifting market.

• Market Activity: The average duration listings spent on the market before sale extended from 70 days in Q4 last year to 82 days in Q1 2024, indicating a 17% increase. This metric offers a window into the evolving change in the market created by the increasing number of listings and lower sales in the waterfront condo market.

Factors Influencing Sales – The pace of sales is shaped by current interest and inflation rates, which, though lower than the previous year, alongside electoral anticipation, have led buyers to adopt a cautious stance. This wait-and-see approach could influence buying decisions and market momentum for the remainder of 2024.

2024 Market Forecast: Expectations point to a leveling off in condo pricing through 2024, with value increases potentially lagging behind inflation rates in the short term. However, the coming year promises a rebound, with condo values anticipated to surpass inflation, highlighting a golden window for buyers. Procrastinators risk missing out on prime buying opportunities before an anticipated price ascent.

Selling or buying a Condo? Partner with Lake & Coast Real Estate Co. for unmatched expertise in the waterfront condo market. Our knowledge and marketing acumen stand ready to guide you through the sale process with confidence. Start your search or sale with Lake & Coast, the waterfront property experts.