Whether you’re a homeowner thinking of selling or a buyer searching for your dream property, understanding the current real estate market in Gulf Shores and Orange Beach is key. With 2025 well underway, we’ve analyzed key trends across all residential property types—not just waterfront homes—to give you the full picture.

From inventory to prices to absorption rate, here’s how the first four months of 2025 compare to the same timeframe over the past four years—and what it means if you’re navigating the Gulf Shores real estate or Orange Beach real estate market today.

📊 Market Overview: All Homes in Gulf Shores & Orange Beach

The first thing that jumps out in 2025 is rising inventory. Active listings have surged across all home types, while the number of homes sold remains moderate. Buyers now have more choices, but sellers are facing increased competition and longer time on the market.

Active Detached Housing Listings in OBA & Gulf Shores – May 2025

💰 Home Prices: Median and Average Sold Prices Hold Strong

Even with more homes on the market, both median and average sold prices have remained relatively steady in 2025. This signals that buyer demand is still strong—especially for updated homes in prime locations.

Key takeaway: Price your home competitively, and buyers will still show up.

⏱️ Days on Market: Homes Are Taking Longer to Sell

The average Days on Market has climbed year over year, and 2025 continues that trend. While homes are still selling, they’re doing so at a slower pace compared to the fast-moving market of 2021–2022.

Sellers: Prepare for longer timelines and factor this into your move-out plans.

📉 Absorption Rate: Balanced but Shifting Toward Buyers

The absorption rate—which measures how quickly current inventory would sell at the current pace—has been steadily climbing. With levels reaching around 8–10 months, we’re now in a market that leans toward buyers, especially compared to the low-inventory conditions of early 2021.

Month of Inventory – May 2025

What This Means for Buyers & Sellers in 2025

🏡 For Buyers:

• More inventory = more choice
• Less urgency and more time to negotiate
• Interest rates may still impact purchasing power, but price stability is a positive sign

🏠 For Sellers:

• The days of lightning-fast sales are behind us—for now
• Pricing your home correctly is essential
• Partner with a local Gulf Shores realtor or Orange Beach realtor who knows how to market strategically in a more competitive landscape

Thinking About Buying or Selling in Gulf Shores or Orange Beach?

At Lake & Coast Real Estate Co., we help buyers and sellers succeed in every kind of market—from booming years to shifting conditions. Whether you’re listing your home or starting a home search, our local experts are here to guide you every step of the way.

🔍 Browse the latest Gulf Shores homes for sale and Orange Beach homes for sale, or
📞 Contact us today for a personalized market evaluation.