2024 Perdido Key/Orange Beach Condo Market Trends

As we enter 2025, here's a look at the market trends for condos in the Perdido Key and Orange Beach markets.

The information below was compiled from the MLS, Florida REALTORS SunStats, and Baldwin REALTORS InfoSparks relating to condos and townhomes in Perdido Key, FL and Orange Beach, AL.

SALES VOLUME

2024 continued a downward trend in place since the post-pandemic boom and below the average annual volume over the previous 7 years. This 3-year trend is easily seen in both Perdido Key and Orange Beach markets.

The last time sales volume hit similar lows was 2018 when the average 30-yr fixed rate was 4.7%, a level not seen since 2010. The Federal Reserve was gradually increasing the federal funds rate on the back of positive economic outlook, low unemployment, and near target level inflation.

2024 new listings remained steady, helping to explain the increase in months supply of inventory to above pre-pandemic levels.

Months Supply of Inventory is the number of months it will take a market to absorb the inventory that's available at the end of the month and is a popular gauge of the health of a market.

SALES PRICE AND DAYS ON MARKET

As expected with softer demand, days on market increased but average sales price per square foot has remained steady. I prefer to look at the trailing twelve-month (TTM) average to reduce some of the variability in the quarterly data points.

It's always worth noting that Orange Beach is a larger market than Perdido Key, showing less volatility and perhaps a better indicator of the overall market. Although data is not provided, the neighboring communities of Gulf Shores and Pensacola Beach produce similar results.

WHERE DO WE GO FROM HERE?

It's hard to dispute the market shift towards buyers. Compared to a few years ago when sellers received multiple offers within days of hitting the market, buyers today have more options and greater leverage. While there's no shortage of market predictions for the upcoming year, most expect mortgage rates to stabilize and demand to remain suppressed. However, I'm always reluctant to quickly associate national forecasts with a second home and vacation rental market such as ours that relies heavily on discretionary income and cash buyers.

Ready to make your move in this evolving market? Let's discuss how these changes could benefit you. Contact me for a personalized consultation and if you'd like to receive future market updates, please drop me a note, follow my business page, or you can subscribe to my website.