Gulf Condo Sales up 38% compared to last year.
For the month of March, Gulf Coast condo sales increased 37.9%. Our market also saw a 7.7% increase for the first quarter of last year. Our trough was in March 2007, and since then the condo market has jumped 60%.
It’s all about Supply and Demand
This year our supply of condos for sale has decreased by 17.8%. Historically, we have seen an increase in supply from February to March, but for the last two years this has been the opposite. The demand for Gulf Coast condos were up 34.9% from the prior month. This follows the traditional 35% increase from the month of February.
Are prices up?
Yes. The median condo in Baldwin County this March was $239,600. That’s up 31.3% from last last March. However, the median condo price is still 16.5% below it’s March 2007 peak. Going into the 2nd quarter of 2012, the Gulf Shores and Orange Beach Condo markets should continue to rise, as is traditionally the case as we go into our peak summer/sales months.
We’ll continue to see an increase in prices as we simply have less condos to sale, especially Gulf Front condos. With rental income being better than ever, many owners who were considering selling have instead decided to gain the rental income and likely sell at the end of our peak season. Prices will continue to rise, also, because of incredibly low interest rates and ever increasing demand.