I've been a licensed Real Estate Agent since January of 2012 and over the last 6 years, the prices of AL Gulf Coast Real Estate has been on a consistent climb with no topping out foreseen.
The graph of Inventory Levels* are the lowest since 2006 with ~650 units for sale in December 2017 compared to an astounding 2,904 in December of 2006!
With the low inventory environment, this brings about reduced days on market as buyers are ready and waiting to pounce when the condo hits the market fitting their personal criteria.
The Average Days On Market(DOM)* for AL Coastal condos is nearly half from one year ago; around 87 days.
With the above factors unfolding before our eyes, this is the breeding grounds for a tremendous spike in prices at some point. Buyer's frustration will come into play waiting for the perfect unit at yesterday's prices and they will "bite the bullet" to get in this market.
At first glance at this graph of Average Sales Price*, you may ascertain we are stabling off and potentially going to see a reduction in prices when seeing the 2013 average prices of ~$404,000. However, the underlying outlier in the climb from January 2012-December 2013 was a BP incentive when purchasing a Turquoise Place Resorts Condominium in the price range of $725,000+ after incentives of $200,000 for 3 BR and $300,000 for 4 BR condos. Between 2012 and 2013, roughly 160 of these units sold with an average price of $1,128,009.
Now wait..... That does not make sense... Ahhh, what isn't taken into account is when these condos were recorded, they were recorded at the pre-incentive prices of $925,000+!
Also, this was the only new project at the time and buyers were anxious to buy the nicest and newest development on the AL Gulf Coast! This yielded a windfall of purchases pushing the average price upwards.
With current pre-construction projects hindered by rising construction costs and just plain lack of interest, I see the current buildings becoming more valuable.
The only successful company building new condo projects is Brett-Robinson, currently. With 30+ years of building the strongest buildings in the area, they have the pre-construction sales ability and the funds to bring new towers into existence.
If you are a buyer, then buy. If you are a seller, sell and buy something nicer! With prices trending from the lower left of the graph to the upper right and a ~38% discount from December 2008 highs, I see no hesitation in recommending a purchase at this time.
Contact Matthew J. Welch to discuss AL Coastal Real Estate and/or Perdido Key/Pensacola FL Real Estate:
- Matthew J. Welch
- (251) 979-1098
*Graphs and information provided by the AL Center For Real Estate-link below*