Orange Beach Condo Market Report – Last 90 Days
By Meredith Amon, Licensed in Alabama and Florida
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Market Overview: March – May 2025
Active Listings
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Total: 623 condo listings currently active in Orange Beach
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List Price Range: $195,000 to $4,750,000
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Average List Price: $878,563
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Median List Price: $739,000
Sold Listings (Past 90 Days)
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Sales Price Range: $230,000 to $3,350,000
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Average Sales Price: $860,527
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Median Sales Price: $702,500
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Average Days on Market: ~89 days
Price Per Square Foot (PPSF):
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High-end Sales: $800–$860/sq ft (Phoenix OB II, Turquoise Place, and Tidewater units)
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Mid-range Units: $450–$600/sq ft (Phoenix V, Seachase, The Pass)
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Low-range Units: $300–$425/sq ft (older units, off-beach, or less renovated)
Key Insights
Luxury Market Still Strong
Luxury condos in prime buildings like Phoenix OB II, Phoenix Gulf Towers, Turquoise Place, and The Yacht Club are maintaining high prices per square foot – often exceeding $750/sq ft, with a few topping $850/sq ft. For example:
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Phoenix OB II Unit 233C3: Sold for $1,225,000 | $818.85/sq ft
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PhxGTower2 Unit 33307: Closed at $1,575,000 | $858.31/sq ft
Insight for Buyers: If you're purchasing for appreciation and rental performance, these newer, high-demand buildings continue to deliver long-term value. But be ready to compete or pay close to ask if turnkey.
Mid-Market Cooling Slightly
Condos between $500K–$800K remain a large and active segment, but days on market are increasing. Examples include:
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Phoenix V Unit 22304: $599,000 | 66 DOM
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Summerchase Unit 32203: $819,900 | 94 DOM
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Caribe Units: Multiple sales in the $775K–$950K range, with PPSF between $480–$560
Tip for Sellers: Units in this segment should highlight updated interiors and strong rental performance. Buyers have options, and presentation is key.
Entry-Level & Investment Units Under $400K
Smaller condos such as Sugar Beach, Palmetto, Lei Lani, and Seaside Beach continue to move quickly, particularly for buyers prioritizing short-term rental ROI or affordability:
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Sugar Beach Unit 01120: $195,000 | $497.45/sq ft
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Lei Lani Unit 01206: $279,500 | $698.75/sq ft
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Palmetto Units: Around $300K–$360K | ~400–430/sq ft
Investor Insight: These are often cash purchases and offer some of the highest cap rates, though they require management and may face more wear-and-tear from turnover.
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Buyer Trends & Demand Sources
Buyers are largely:
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From Alabama, Louisiana, Tennessee, Georgia, and the Midwest (especially Indiana, Missouri, and Illinois).
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Looking for short-term rental investments or second homes.
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Often paying cash, especially in the <$400K or $1M+ segments. Conventional financing is more common in the $400K–$800K range.
Quote from a recent neighbor:
"We’ve had more Midwest traffic this spring than ever before. They’re looking to escape the cold and own something they can enjoy and rent out too."
Absorption Rate & Inventory Pressure
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Total Active Condo Listings in Orange Beach: 623
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Estimated Absorption Rate: ~25–30 condos/month
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Inventory Supply: ~20–25 months at current pace
This shows a significant buyer’s market with abundant inventory, giving buyers more negotiating power and room for price adjustments.
Tip for Sellers: Price precisely from day one. Overpricing = extended DOM = stale listing.
Predictions for Summer 2025
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Rental Season Will Drive Interest: Summer is peak showing and income season. I expect activity to rise in June–August, especially in Gulf-front and income-producing properties.
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Buyers Will Seek Turnkey: Updated interiors, newer furnishings, and modern finishes are outperforming dated listings.
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Interest Rates Holding Steady: With mortgage rates hovering around 6.5%–7% for second homes, I don’t expect a surge in financed purchases unless we see significant rate drops.
My Suggestions
For Sellers:
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Consider a pre-summer price adjustment if your unit has sat 60+ days.
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Showcase rental potential, recent upgrades, and HOA financials in marketing.
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Invest in professional photography and refresh staging for renewed visibility.
For Buyers:
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Leverage this wide inventory – negotiate upgrades or furnishings into the deal.
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Focus on HOA stability, rental history, and view quality.
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Take your time – this is a patient buyer’s market.
The Orange Beach condo market is transitioning, but it’s full of opportunity. If you're thinking about buying, selling, or investing on the Gulf Coast, I’d love to help you navigate the process. You can explore all current listings at:
SEARCH ORANGE BEACH CONDOS FOR SALE
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