The Covid-19 pandemic keeps affecting the lives of Americans along with the rest of the world. The process of searching, showing and buying homes for sale became more complex to accommodate all the new safety procedures. Nonetheless, the Gulf Shores real estate market keeps attracting buyers from all over the country and home sales remain strong for the third quarter of 2020.
Apart from the pandemic, the Alabama coast has been also struggling with an unusually active hurricane season. There have been several named storms which affected our local area this year with Hurricane Sally being the most devastating yet. However, the city of Gulf Shores, along with local contractors, has been working relentlessly to clean up the beaches and have them ready for visitors and residents. There has been over 250,000 cubic yards of storm debris collected so far from Hurricane Sally which is nearly 70% of the estimated yards of debris within the city. The city hired over 30 crews to work 12-hour shifts seven days a week to finish the clean up as fast as possible. Most beach access points, waterway and boat landings, as well as nature trails in Gulf State Park are open.
Gulf Shores Real Estate Market Report
The Orange Beach and Gulf Shores real estate markets have always attracted home buyers searching for fine coastal properties in an all-time, pleasant climate. The stay-at-home order brought upon by the pandemic kept many prospective home buyers from searching for their dream home. When the mandatory quarantine ended many buyers flocked to the market causing the real estate industry to explode. Home buyers have also been highly motivated by the historically low mortgage rates and stimulus packages from the government.
According to data from the Alabama Center for Real Estate, 2,355 residential properties were sold in the third quarter of 2020 in Baldwin County. When compared to the same time last year there were 1,955 units sold which is 380 properties more this year than last. Moreover, looking at the numbers from the past years, the residential sales in the third quarter of 2020 are 19.5% higher than the 3-year quarterly average, and 36.3% above the 5-year quarterly average.
The median sales price, which is the price in the middle of the data set when you organize all the residential sale prices from low to high, for the third quarter of 2020 in Baldwin County was $262,727. The median sales price in the third quarter of 2019 was $245,500 which is 7.0% lower. Furthermore, comparing to the average 3rd quarter median sales prices from the last three years the third quarter median price in 2020 is 9.7% higher.
The average selling price in Baldwin County has also seen a substantial increase. The average price for the third quarter of 2020 was $345,831 which is 9,1% higher than it was in the third quarter of 2019. The average selling price in the third quarter of 2020 was 13.1% higher than the 3-year quarterly average, and 20.5% higher than the 5-year quarterly average.
According to the data, on average in the third quarter of 2020, residential properties stayed on the market in Baldwin County for 80 days. In, 2019 that number was 83 days. Between 2015 and 2019 properties would stay on the market for an average of 125 days in the third quarter.
The number of residential units listed for sale in the third quarter of 2020 in the Baldwin County real estate market decreased by 1,017 properties when comparing to the same period in 2019. Between 2015 and 2019 there were 2,963 residential properties listed for sale on average in the third quarter which is 1,143 higher than 2020 data.
The Inventory-to-Sales-Ratio for a quarter of a year is obtained by dividing the quarterly average of inventory of properties for sale by the current quarterly sales average. According to data from the Alabama Center for Real Estate, for the Baldwin County market, the inventory-to-sales ratio was 46.7% lower in 2020 than it was the same time a year ago. When comparing to the 5-year quarterly average the numbers are lower by 54.7%.
The data from the University of Alabama clearly shows the Gulf Shores real estate market is in high demand but supply is running low. If you’re in the market for a Baldwin County property make sure you work with an agent who knows the area and is an expert negotiator with the home buyers’ best interest in mind.
Where to Start Looking for your Dream Home in Gulf Shores
The Fort Morgan area in Gulf Shores offers some of the most beautiful homes for sale located by the ocean, a bay or an inlet. It is not a densely populated area with wide spaces between lots. The quiet and safe community of Fort Morgan is a perfect choice for prospective home buyers thinking about retiring in Gulf Shores or work-from-home professionals who wish to live near the beach. Apart from white sandy beaches, Fort Morgan offers a plethora of activities for residents and visitors such as walking, bird watching and golfing at some of the most prestigious golf courses.
One of the most sought after neighborhoods in the Fort Morgan area is Morgantown. Morgantown is a beachfront community located only 20 minutes from downtown Gulf Shores. Most properties here are single family homes built on stilts. Some of the neighborhood amenities include two pools and a tennis court.
Take a look at some of the Fort Morgan area properties for sale:
If you wish to live closer to fine dining, shopping and entertainment, consider the Gulf Shores City Center area. The City Center offers a vast choice of properties from small, studio apartments to three or four bedroom estates.
The Peninsula is one of the neighborhoods in the City Center area which attracts a great number of buyers. This large, gated, golf course community offers some impressive amenities such as a pier on it’s private beach. The Peninsula covers over 800 acres of beautifully maintained landscape and protected nature preserves. It is bordered by Bon Secour Bay to the north and the Bon Secour National Wildlife Refuge to the east.
Take a closer look at some of the properties in The Peninsula community available for sale now:
If you have questions or concerns about the Gulf Shores real estate market as well as housing markets in the surrounding area please contact us today at 1-866-981-4378 or send us an email.