Alabama Gulf Coast Condo Market Report: June 2024

As we delve into the Alabama Gulf Coast condo market for June 2024, significant shifts have occurred over the past year. Analyzing the data from May 2023 to May 2024, we observe trends that highlight the dynamic nature of this real estate market.

Market Transition: From May 2023 to May 2024

Reflecting on last year’s trends, the market has seen a clear transition. In May 2023, the absorption rate for waterfront condos was at 7 months, which ended with a 10-month supply at the beginning of June 2024. The absorption rate peaked in March of this year reaching a 14 month supply. Although the absorption rate has fallen by 4 months from earlier this year, we are still at a much higher supply of condos available than last year. This indicates a move towards a more buyer-friendly market as inventory levels continue to rise.

Key Metrics Comparison: May 2023 vs. May 2024

• Number of Condos Sold: In May 2024, 79 condos were sold, marking a 5% increase from the 75 condos sold in May 2023. This uptick in sales indicates a slight improvement in market activity compared to the same period last year.
• Average Days on Market (DOM): The average days on the market in May 2024 for sold listings reached 80 days, compared to 65 days in May 2023, reflecting a 23% increase. The average days on the market for all active condos was much higher, reaching over 120 days at the end of May. This suggests that while more condos are selling, they are taking slightly longer to do so.
• New Listings: May 2024 saw 147 new listings, which was on par with the number of new listings in May of 2023. This long term influx of new listings outpacing sales contributes to the growing inventory and the extended DOM.
• Average List Price: The average list price for condos in May 2024 is $835,091. This is indicative of a robust market where sellers are confident in setting higher asking prices.
• Average Sales Price: The average sales price in May 2024 was $679,249, up 7.5% from $630,755 in May 2023. This rise in average sales price demonstrates a healthy appreciation in property values.
• Total Number of Listings: By the end of May 2024, the total number of listed condos reached 658, up from 410 units at the end of May 2023. This 60.5% increase underscores the growing inventory and the shift towards a buyer’s market.

Market Trends and Insights

• Pricing Trends: Sellers are adjusting their expectations, with the average listing price for waterfront condos stabilizing. The close alignment of sale prices to listing prices at 96% indicates a well-balanced negotiation field between buyers and sellers.
• Inventory Insights: With 658 active listings by the end of May 2024 and a steady stream of new listings each month, buyers have more options than ever. This expanded inventory is contributing to longer DOM and increased bargaining power for buyers.

Factors Influencing the Market

Several factors are influencing the Alabama Gulf Coast condo market, including:

• Interest Rates and Inflation: While interest rates have slightly decreased compared to the previous year, inflation remains a concern for many buyers. This economic backdrop is causing some potential buyers to adopt a cautious approach, delaying their purchasing decisions.
• Market Sentiment: The upcoming elections are adding to the uncertainty, as buyers prefer to wait and see the economic policies that will be introduced. This cautious sentiment is impacting the overall market momentum.

Market Forecast for 2024

Looking ahead, we expect the condo market to maintain its current trajectory of increased inventory and longer sales cycles through the remainder of 2024. However, this presents a unique opportunity for savvy buyers to enter the market before prices potentially rise again in the following year.

As the market stabilizes, now is an ideal time to negotiate favorable terms and secure a waterfront condo at competitive prices.

Partner with Lake & Coast Real Estate Co.

Whether you are buying or selling, partnering with Lake & Coast Real Estate Co. ensures you receive unparalleled expertise in the waterfront condo market. Our team is ready to guide you through every step of the process with confidence and ease.

Start your search or sale today with Lake & Coast, the waterfront property experts.

Contact Lake & Coast Real Estate Co. for more information on the latest market trends and to explore your options in the Alabama Gulf Coast condo market.