Recent Real Estate Trends

Posted by Aaron Pugh on Tuesday, August 27th, 2013 at 11:53am.

Real Estate sales have been on a significant upswing in 2013.  Our local beach communities including Gulf Shores & Orange Beach, AL and Perdido Key, FL have had a 3.1% increase in sales and neighboring Mobile, AL has seen a 4.7% increase.  Nationally, prices has risen 12.6% when compared to May of last year.  New construction is up 7.4% according to Mike Cranston of Re/Max in Orange Beach, AL.  A contributing factor, according to Mike, is the considerable jump in prices of finished lots which is up 30 to 50 percent.  People who owned larger homes are downsizing to smaller homes.  The availability of foreclosed properties is down and now is a great time to buy considering the aforementioned areas (primarily a resort area) have not experienced large price increases like many larger metropolitan areas.  According to Cranston that great deals are few and far becoming between and prices will not remain where they currently are as values are rising as the transition back to historical standards is taking place with both prices and interest rates.

New construction retes are also the highest they have been in years.  Cranston notes the beach market has been hot as investors and end users grab rental properties as investments.  Much of this activity is due to interest rates sitting at a 30 year low.  Cranston said he expects this trend to continue as consumer confidence is even higher with the beach communities.  These beach communities is even higher than many adjacent larger markets such as Mobile, AL and Pensacola, FL.  This confidence is directed to a higher quality of life and the sheer beauty of the areas around the Gulf of Mexico.  "We are truly blessed to reside or visit an area with so many activities and things to do year round because of the climate proximity to the gulf.  For complete real estate information on Baldwin County or Perdido Key, FL.

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