WHAT'S SHAPING BALDWIN COUNTY'S REAL ESTATE MARKET IN OCTOBER 2024
I’ve curated a comprehensive snapshot of the Baldwin County real estate market for October 2024, designed to provide valuable insights into the trends currently shaping our vibrant and dynamic coastal region.
Resort/Island-Based Market Insights
The Resort/Island-Based market, which includes Orange Beach, Fort Morgan, and the Gulf Shores area south of AL-180, saw the average sales price rise to $772,927, an 8.6% increase year-over-year. This mirrors what I’ve observed with luxury homes and waterfront properties—demand remains high, especially for homes with boating amenities or those in communities like Ono Island. However, listings are staying on the market longer, with the average days on market (DOM) jumping to 128 days from 66 days last year.
This shift doesn’t surprise me. I've noticed that while high-end buyers are active, they're being more selective. Homes that incorporate cutting-edge features, like sustainable building products, smart home systems, and outdoor entertaining spaces, tend to sell faster. But those without these upgrades are taking longer to move, and sellers need to price competitively to attract attention.
Closed sales in this market dropped from 149 properties last October to 133 properties, but that's still a solid number considering the national trends. This slowdown might reflect buyer hesitation due to rising interest rates, but I predict we'll see a resurgence as more buyers recognize the long-term value of Gulf Coast real estate.
Traditional Residential Market Insights
In the Traditional Residential market, which includes areas outside the resort market, the average sales price increased by 6.1%, reaching $433,085. Properties in this market are spending an average of 68 days on market, which is 19 days longer than last year. Interestingly, despite the longer selling times, closed sales increased by 8%, with 29 more properties sold than in October 2023.
This aligns with what I’ve experienced when working with buyers seeking primary residences or investment properties inland. Many clients are drawn to Baldwin County for its affordability compared to other coastal areas, but they’re cautious about overpaying. I often counsel my clients to focus on the value they’re getting for the price—whether that’s proximity to schools, updated features, or potential rental income for investment properties.
The following snapshot provided highlights key metrics for Coastal Condos and Coastal Homes in Orange Beach, Gulf Shores, and Fort Morgan, Alabama, for October 2024. Here’s my professional analysis:
Coastal Condos
- Residential Properties Sold: 79
- Average Sales Price: $634,255
- Average Days on Market: 112
- Sales Price Change from October 2023: Increased by 7.6%
Analysis:
The coastal condo market reflects steady demand, with a 7.6% increase in average sales price compared to last year. This growth underscores the sustained appeal of condos as investment properties or second homes in Gulf Coast communities. However, the average days on market (112 days) suggests buyers are taking more time to commit. This could be attributed to factors like higher interest rates, inflation, and the pre-presidential election environment, which often contributes to buyer hesitation. Sellers may need to remain patient while ensuring their properties are competitively priced and well-maintained to attract serious buyers.
Coastal Homes
- Residential Properties Sold: 77
- Average Sales Price: $863,620
- Average Days on Market: 139
- Sales Price Change from October 2023: Increased by 17.4%
Analysis:
The coastal home market has shown remarkable growth, with the average sales price rising 17.4% year-over-year. This increase reflects the high value placed on single-family homes, particularly those offering luxury amenities or waterfront access. However, the longer days on market (139 days) signal buyer caution. Like condos, this delay in decision-making is likely linked to economic uncertainty, interest rate pressures, and the election cycle. Buyers are carefully weighing their options in this higher-priced segment. Sellers with unique or upgraded features, such as outdoor entertaining spaces, energy-efficient systems, or premium locations, are likely to see more traction in this environment.
Market Context and Trends
The extended days on market for both condos and homes highlight current economic conditions, including higher interest rates and inflation, which naturally impact affordability and decision timelines. The pre-election period also historically slows the market as buyers take a more conservative approach.
Adding to this, November, December, and January are historically the slowest months in Baldwin County’s real estate market. However, by February, we typically see a shift. Buyers will either begin purchasing at the current price levels, or, if demand remains slow, we will start to see price adjustments. This period will set the tone for the rest of 2024, and I advise clients to keep a close eye on market activity in the new year.
My Perspective as a Real Estate Advisor
Having worked closely with buyers and sellers in Orange Beach, Gulf Shores, and Fort Morgan, I’ve seen firsthand how these trends play out. For sellers, patience and preparation are key. Strategic updates, pricing aligned with market expectations, and thoughtful marketing can help properties stand out, even during slower months. For buyers, now is the time to evaluate opportunities and negotiate favorable terms, especially for properties that have been on the market longer.
Looking ahead, February will likely bring clarity to the market. As activity picks up, buyers and sellers will have a better sense of whether current pricing will hold or adjust. Until then, it’s important to remain informed and prepared for any shifts.
If you’d like to explore how these trends impact your real estate goals, I’d love to help. As always, I’m here to guide you through every step of the process.
My Personal Thoughts and Predictions
In my conversations with sellers, I emphasize the importance of pricing correctly, particularly in the resort market where DOM has increased. I've seen sellers achieve success by investing in strategic updates, such as modern kitchens, outdoor living spaces, and energy-efficient features. Buyers are becoming more educated, and these updates often seal the deal.
For buyers, the longer DOM in both markets presents an opportunity. There’s more room to negotiate, especially for properties that have been sitting for a while. I’ve been helping several clients navigate these negotiations recently, and their ability to secure favorable terms has been a key factor in their decisions to move forward.
Looking ahead, I expect demand to remain steady, particularly for well-priced properties that meet today’s buyers' expectations. As a local expert, I can’t stress enough the value of working with a knowledgeable advisor to navigate these complexities—whether it’s understanding market dynamics or finding the perfect home on Ono Island.
For more information on the latest market trends or to explore homes in Orange Beach, Gulf Shores, or Ono Island, feel free to reach out. Meredith Amon is a local real estate advisor, licensed in Alabama and Florida. She specializes in helping buyers and sellers navigate the buying and selling of homes along the Gulf Coast.
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