As promised last month, here is a summary of the beachfront condominium sales in the area for 2009, as compared with 2008 and 2007. As you would expect, while volume saw considerable increases in Gulf Shores and Orange Beach, prices came down accordingly. As the old adage goes: “Everything will sell….at the right price.”
* and ** data obtained from Baldwin County MLS and while deemed reliable, are not warranted.
The interesting news is that beach condo sales in Ft. Morgan, while decreasing in volume by over a third, seem to have achieved a plateau in pricing…what we may hope could be a “bottom” if we were so bold: $288/sq ft in 2008, and $288.14/sq ft in 2009. In looking at sales, it appears this is the result of two main variables: 1) Beach Club and Plantation have “held tough” on their pricing. 2) the ‘mix’ of sales at GSP was enriched by an decrease in lower-priced (foreclosure) sales, and an increase in higher priced units.
Here are those mixes:
Complex 2008 Sales 2009 Sales
GSP 27 3
RGBRC 2 5
RCC 13 6
Palms 2 6
It is our hope that 2010 will not see any further erosion in pricing, but credit has become increasingly difficult, and numerous short-sales and foreclosures have been priced for “cash” sales. This will play a significant role in property values if credit becomes unavailable. Keep your fingers crossed!