Finally! Since Hurricane Katrina, our area has been missing something: INVESTORS! However, every month this year gulf front condo sales are up while prices are down. As of one month ago, sales volume for gulf front units in Orange Beach, Gulf Shores, and Fort Morgan, AL and Perdido Key, FL were up 30% over 2007 sales volume!! This is according to my research in the Baldwin MLS.
This is the first time in 4 years that we have seen an increase in overall sale volume of gulf front condo units. The recipe of increased sales volume + decreased values tells me one thing: THEY'RE BACK! Investors, that is! If priced correctly, based on recent sales, several gulf front condo units have the potential for two things: Good appreciation potential over time (3 - 5 years); and a nearing cash flow situation, with 10% to 20% down on units priced right with strong rentals income! This is very exciting because it has been a very long time since both of those factors could be considered by investors when contemplating a gulf front purchase in our area. A few years ago, our market was 'super hot' and jumped from (on average) $350/SF +/- to $550/SF +/- in just one year (2004 to 2005). During this time period, the motivation for buying was super fast appreciation potential. Buyers in our market from just before the surge of sales and during realized amazing profits in a very short time.
Prior to 2004, real estate was different in our area (a lot like it is now) - we all had our pro forma worksheets out and we were crunching numbers along side our clients - using real numbers and data to help them make big decisions about tangible investments along the Alabama Gulf Coast and in Perdido Key, Florida. With pre-2004 prices back in sight, the potential for a reasonable and substantiated investment in our area exists again. It is a good feeling to provide my clients with Pro Formas again that make sense, and talk with them about the long term potential each property may or may not have. This is back to the basics for me - the way my father taught me the real estate business from the time I began working with him in 1999! I am happy to have the opportunity to make buyers feel comfortable again! It is also great to be working with investors again who also want to be a part of what our area has to offer: investments that you can sink your feet into! The buyers I am working with now embrace the opportunity to spend a few weeks+ here a year with their families and friends. This to me is responsible real estate buying where everyone wins: the investor (and his family and friends if they get to enjoy our gorgeous beaches and island fun), SELLERS, lenders, local business owners, and way beyond! Nice to see a good domino effect in the works (hopefully) for the next several years!
Please contact me by email (firstname.lastname@example.org) or phone (251.609.2210) for more information about exciting investment opportunities and the latest market data for the Alabama Gulf Coast and Perdido Key, FL! Visit my website to see monthly sales stats and read more about me! http://www.buy-the-beach.com