2024 Orange Beach and Gulf Shores Condo Market Report and 2025 Outlook 2024 Market Overview The Orange Beach and Gulf Shores condo market experienced a mixed year in 2024. While sales volume decreased significantly, prices continued to rise, reflecting a complex dynamic between buyers and sellers.

• Sales Volume:
  • 712 condos were sold in 2024, marking a 22% decline compared to the 909 units sold in 2023. This sharp drop indicates a cooling in buyer demand or a hesitancy due to market conditions.
• Pricing Trends:
  • The average sales price for condos rose by 1% from 2023 levels, despite the drop in sales. This suggests that sellers are holding firm on pricing, even as the market slows.
• Market Activity:
  • A total of 1,308 new listings entered the market in 2024, with an average list price of $784,002.
  • Active listings at the end of 2024 show an average of 160 days on the market, significantly higher than the 97-day average for sold listings. This disparity highlights that many properties are lingering on the market, likely due to mismatched pricing expectations between buyers and sellers.

AL Gulf Coast Condo Listing & Sales 2024

• Days on Market:
  • Sold listings in 2024 took an average of 97 days to close, a 61% increase from 2023. This trend reflects the slowing pace of transactions and a more deliberate decision-making process by buyers.

Key Observations:

• The combination of rising prices and falling sales indicates a disconnect between buyer and seller expectations.
• Properties that are priced competitively and meet buyer expectations are still moving, but the increasing days on market suggest that many sellers are struggling to attract offers at their desired price points.

2025 Market Predictions Looking ahead to 2025, several trends are likely to shape the Orange Beach and Gulf Shores condo market:

1. Continued Buyer’s Market:
   • The extended days on market and increasing inventory suggest that 2025 will continue to be a buyer’s market. Buyers are expected to have stronger negotiating power, particularly for properties that have been listed for an extended period.
2. National Market Influences:
   • Insights from the National Association of Realtors (NAR) indicate that affordability challenges, driven by high mortgage rates and elevated property prices, could suppress buyer activity. However, areas with strong tourism appeal, like Orange Beach and Gulf Shores, may see sustained interest from second-home buyers.
3. Focus on Competitive Pricing:
   • Sellers who prioritize realistic pricing and understand current market conditions will likely find success. Overpriced listings will continue to linger, impacting overall market averages.
4. Economic and Interest Rate Impact:
   • Broader economic conditions, including employment trends and interest rate policies, will significantly influence buyer behavior. The NAR projects that while rates may stabilize, they are unlikely to drop drastically in 2025, which could keep buyer activity cautious.
5. Increased Demand for Amenities and Quality:
   • Buyers will continue to seek condos with modern amenities, proximity to attractions, and high-quality finishes. Listings that meet these criteria will remain competitive.
6. Inventory Challenges:
   • NAR’s forecasts suggest that inventory may remain tight in some markets, which could balance out some of the downward pressure on prices. However, the extended days on market in this area indicate that proper pricing will still be key.
7. Optimism from New Administration:
   • A new administration may boost buyer optimism, potentially encouraging increased market activity. Additionally, 2025 could be the year when inventory adjusts enough for the buyer’s market to dissipate by year-end, leading to a more balanced market.

Conclusion The Orange Beach and Gulf Shores condo market in 2025 is poised for a year of gradual adjustment. Sellers should remain mindful of market trends and focus on strategic pricing and presentation to attract buyers. Meanwhile, buyers may find opportunities to negotiate and secure properties at more favorable terms, especially in a market where some inventory is sitting longer. National trends, such as interest rate stability and inventory constraints, will also play a significant role in shaping the market’s trajectory. Keeping an eye on economic factors and local market data will be crucial for all parties navigating this evolving landscape. If you’ve been considering selling, our team at Lake & Coast Real Estate is here to guide you through the listing process, ensuring your property gets the visibility and offers it deserves. Contact us at 251.980.7550 or by email at sales@lakeandcoast.com to discuss your goals, and let’s start the journey to a successful sale together. Start your search or sale with Lake & Coast.