I enjoyed talking with Dawn Kent to provide information for for this story. I’m also glad to begin to have a bit more positive view on alt least one of our markets. Still a lot to work though but progress is beginning to be evident. See my summary of last month here.
The second-home market, particularly along the Gulf Coast, still has a way to go, although there are “delicate signs of a bottom,” said real estate analyst Tom Brander, publisher of the Rudulph/Brander Monthly Birmingham Area Real Estate Report.
Brander also tracks coastal Alabama with a monthly report on the Baldwin County Multiple Listing Service area. He notes that while the number of homes on the market is coming down, there are still multiple years’ worth of inventory for higher-priced used homes, which tend to be vacation homes.
For example, 310 used homes for sale in the Baldwin County area are priced at more than $900,000. In the past year, 32 have been sold, leading to Brander’s estimate of 116 months of inventory still on the market. For homes priced in the $500,000 to $600,000 range, about 40 months of inventory remains.
While such numbers mean it’s a good time to find bargains, Brander said some developments are virtually toxic. That’s because the number of sold units is too low to generate adequate maintenance fees for the property.
“There are buildings in Florida that have basically been shut down, mothballed. You cannot get a mortgage on a unit because banks are aware of the situation and refuse to finance it,” he said.
Well I’ve been saying that we are beginning to see the signs of a bottom. Hope it is real. See the reports for the last few months. Last month here.
And an index to all of my more recent articles about Baldwin County Alabama coastal property here.