IMPROVING REAL ESTATE MARKET ALONG THE ALABAMA GULF COAST
Condos in Gulf Shores and Orange Beach are growing in value and in sale prices, and as a result, the inventory is the lowest it’s been in years. As the inventory decreases, prices are naturally going to increase as the demand does. In many of the newer buildings, prices have increased by up to $50,000 in some cases. As a result, sellers who were waiting to recover equity in their units, are now beginning to consider selling and we’re beginning to see some of those units come onto the active market listings.
VACATION RENTALS AT THE BEACH
Rental revenues for condo owners have had double digit increases year after year since the Deep Horizon Oil Spill in 2010. As part of the restitution along the Gulf Coast, BP spent hundreds of millions of dollars in the past three years in advertising the area. We’re seeing tourists from all over the country, who are visiting the area and making it a yearly tradition. Condo investors are experiencing positive cash flow in many cases, and that has spurred condo sales as buyers see their investment pay for themselves, while also experiencing growth in equity as prices rise.
NEW HOMES BEING BUILT THROUGHOUT SOUTH BALDWIN COUNTY
Off the beaches, builders are buying up lots throughout Baldwin County and new housing starts are at an all time high, compared to the last 7 years. Homes are available in nice subdivisions in all price ranges, from the mid $100,000’s and up. Investors are also buying up many of these homes, as the long term rental market remains strong. Long term rental properties are a great investment. They’re difficult to find and there are many renters for the few available properties.
GROWTH IN BUSINESSES ALONG THE BEACH
After several years of stagnant growth in new businesses, the area is beginning to see growth in all sectors. Many new restaurants are opening throughout Gulf Shores and Orange Beach, with retail and tourist operations opening on a reguar basis to serve the growing tourist market.
Interest rates still remain some of the lowest we’ve seen since the Real Estate bubble burst. Experts believe that 2015 will bring about rising interest rates, up to 5%, growing to 6% in 2016. Now is a great time to buy while interest rates are low, and we’re in a slowly appreciating market. Call or text me at 251-989-5966 for more information.