Alabama Gulf Coast Condo Market Update: May 2025

Hi friends,

If you know me, you know I’m not one to sound alarms or dwell on doom and gloom. I’ve always believed in looking on the bright side and focusing on possibility over panic. That said, after 32 years in the real estate business, I’ve also learned to recognize patterns—and right now, our local condo market is showing signs worth paying attention to.

 What's Happening in the Beach Condo Market?

Right now, along the Alabama Gulf Coast, we’re seeing several trends that mirror parts of the 2008 market. While it’s not identical, the similarities are enough to warrant a thoughtful approach—especially for condo owners considering a sale.

Here’s what we’re seeing:

• Inventory has reached a 12-month supply.
  That means if no new listings came on the market starting today, it would still take a full year to sell everything that’s currently listed.

• The days of multiple offers are behind us.
  Buyers are more cautious and selective, and serious interest is now reserved for well-priced properties.

• Cost of ownership is rising.
  Insurance premiums, HOA fees, special assessments, and property taxes are all trending upward.
  At the same time, rental income—while still present—is down from the highs of the past three years.

When rental revenue softens and expenses rise, it puts pressure on net returns. For many investors and second-home owners, the only remaining lever to pull is price.

 So What Can Sellers Do?

The good news? If you purchased before 2020, you likely have significant equity in your property. This is your opportunity to exit on top—before more listings flood the market this summer and prices potentially soften further.

Here are three smart strategies for sellers right now:

1. Price your property at or slightly below market value to stand out.

2. Don’t wait until late summer when inventory is likely to increase even more.

3. Focus on net gain, not squeezing every last dollar—today’s serious buyers are value-driven and strategic.

 Want to Know What’s Selling?

Every week, I publish updated blog reports on what’s selling along the coast. Here are the most recent:

 Orange Beach Market Report – May 19, 2025
 Gulf Shores Market Report – May 19, 2025
 Perdido Key Market Report – May 19, 2025

If you’d like a custom analysis on your building or specific unit, I’m happy to provide one—no pressure, just the facts.

 We’re Here to Help

My team and I are committed to marketing your property with skill, care, and professionalism. We’ll handle the exposure and outreach—but ultimately, the market determines when your condo sells and at what price.

Let’s work together to make sure you’re positioned for success. Contact Leigh McPherson for more information.

Warm regards,
Leigh McPherson
REALTOR® | Broker Associate | RE/MAX of Orange Beach