We've wrapped up another summer season on the beaches of Alabama and we are deep into the the "locals summer". The weather is still nice and the beaches and restaurants are less crowded. Locals truly love this time of year. If you are not a local full time or part time, you should be and I can help you make that happen.
The ongoing story for 2024 is interest rates and their affect on sales volume. In South Baldwin County all markets are showing lower units sold except for Eastern Shore markets of Fairhope, Daphne and Spanish Fort.
With this slow down in sales one would expect prices to come down or at least flatten out. This has been the case throughout most of South Baldwin with the exception of Gulf Shores Single Family Homes. This category has seen an increase in both median price (27%) and Price Per Sq Ft (12%) over Q3 of 2023 due in part to new construction in the luxury sector.
What is the outlook going into Q4 and 2025? Mortgage rates are projected to dip down below 6% providing and actual and psychological boost in purchasing power and sentiment for buyers. According to Bankrate 35% of homeowners would be motivated to move if rates fall under 6%. With rates heading in the right direction, although very slowly, and pent up pressure from those waiting on sidelines. the expectation for 2025 is for sales volume to begin increasing again. The good news for both buyers and sellers is they can get what they want with patience, diligence and the right agent working for them.
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