Our year end summary of real estate news for Baldwin County using data from Metro Market Trends is a mixture of good news and bad news. Let’s start with Gulf Coast commercial real estate. The good news is that the number of transactions increased by just under 11%. The bad news is that the dollar volume was only a 3% increase. Translation, you must do more deals to keep the same volume. It reminds me of a comment from an agent the other day that went like this, “I am working twice as hard and making half as much.” Well it isn’t quite that bad but it does have that same feel. Total single family residential sales for Baldwin County were down just under 4% but the total volume was down 13.5%. The downward slide in prices still occurred in 2011 but not as drastic.
Condo sales in Gulf Shores and Orange Beach supported an increase of almost 3% in the number of units sold but the market was down about 2% in total dollar volume. In 2010 there were 133 new units sold and in 2011 there were 106 new units sold. The new units sold were in the higher price range this past year. Some very nice condos are no longer on the market and many buyers got outstanding deals on condos in Orange Beach and Gulf Shores.
Improving news is also present in the foreclosure world. Market dollar volume of foreclosure sales dropped more than 52% and notices of defaults dropped 21%. The bad news is that the financial pain for many Americans is still prevalent in the market place. Confidence is still very low in our financial markets but I will not get on my soap box at this time.
Most of us Americans have learned very valuable lessons in our financial lives. The sad thing is that the “Government” didn’t learn much at all. Some people, probably not me or you, can still get a 100% government insured loan on a primary residence. Wait a minute, didn’t loans to people that weren’t credit worthy get us in this mess?  100% financing causes properties to go under water with even the slightest market downturns. Oh well, that’s another soap box story for another day.
All of us here at Realty Executives Gulf Coast would like to thank our clients for a great 2011. After the BP Oil Spill in 2010 our area has made a great recovery and we plan on being here to assist our clients with all of their real estate needs in Orange Beach, Gulf Shores, Foley and the surrounding communities for years to come. With a record number of visitors to Gulf Shores and Orange Beach this year, according to this article, and condo inventory decreasing we hope to start seeing an increase in market values. Don’t wait for the Spring season to start looking for that perfect property. Contact one of our experienced executives today.
The numbers once again show some interesting movement in Baldwin real estate. According to data provided by Metro Market Trends, single family new home sales were flat over November 2010 to November 2011 from 38 up to 39 units sold. Resales were down a few units and a few million dollars in value. Total dollar decline in single family homes was a mere 1.83%.
Alabama Gulf Coast condo sales took it on the chin. It had a decline of almost 10% in units sold but a 15% decline in dollar volume. Ouch! A little more slide in some values but not a disaster.
The Baldwin County commercial market increased 5% in number of units sold but had a hefty 17% increase in dollar volume. The banks are getting rid of their problem properties in an attempt to get out of the real estate business and back in to the banking business.
The new temporary norm (until it changes again) is interesting and painful. However, adjustments can be made to survive this market. Just remember what they always say in business class, “if you are losing $10 on each deal, you can not make it up on volume!” Until next time.
Congratulations to our top Executives for the month of November. Lacie Maynard was the top Executive for the number of transactions and Melissa White was top for total dollar volume.
The Alabama Gulf Coast Chamber of Commerce will be celebrating the upcoming holiday season by hosting the 26th Annual Nautical Night of Lights boat parade. This is a great event for the entire family. The parade begins in Gulf Shores at Lulu’s at Homeport Marina. The Parade then travels East down the Intercoastal Waterway past The Wharf, around Bear Point in Orange Beach and South to the Perdido Bridge in Orange Beach. For more information about this annual event contact the Alabama Gulf Coast Chamber of Commerce.
Well the glass still has water. Is it half full or half empty? Time will tell. Looking at data supplied by Metro Market Trends comparing September 2010 t0 September 2011 the total single family sales are down just under 11%. The residential lot market is still saturated beyond demand but 222 units were purchased in September. Foreclosure notices dropped from 335 in September 2010 to 212 in September 2011. That is a 37% decrease. Does this mean that the slide is taking a pause based on market conditions? Hopefully it does but it could also be an intentional effort from the banks to slow the process where the damage will be less severe. The good news is that where the properties are priced correctly…..we have buyers.
According to the National Association of Realtors pending homes sales declined from August to September but is higher than it was one year ago. The pending home sales index fell 4.6% to 84.5 in September from 88.6 in August but is 6.4% higher than September if 2010 when it was at 79.4.
NAR’s chied economist Lawrence Yun said that the housing market is being excessively constrained by weak consumer confidence and continuing tight lending. He emphasized the need to reinstate higher loan limits in 42 states. Stating that leaving excessing casy sitting in banks is becoming a drag on the recovery overall.
Realty Executives Gulf Coast’s website makes it easy to view foreclosed properties along the Alabama Gulf Coast. When visiting our office website simply click on the FORECLOSURES tab to the right of the home page to the city where you want to see the most recent foreclosures and bank owned properties to hit the market. After you find a foreclosure or bank owned property that you are interested in one of our experience agents can assist you in the transaction. It is a good idea to have a professional experienced Gulf Coast Real Estate agent assist you in purchasing a foreclosed or bank owned property in Alabama and along the Alabama Gulf Coast. Search tabs that are currently set up on our home page are for foreclosures and bank owned properties in Foley, Gulf Shores and Orange Beach, Alabama. If you are interested in searching for foreclosed and bank owned properties in other cities and areas of the Alabama Gulf Coast such as Daphne, Fairhope and Loxley please contact one of our Executives today.
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