Condos in Gulf Shores Blog » 2008 » January

Since May of 2006, one of the most popular places for owners and guests of homes and condos in Gulf Shores, Orange Beach condos and Fort Morgan Beach condos has been The Wharf in Orange Beach

Just a week or so ago I was talking with Wally and Dave on my weekly show on WTBC Radio and the subject of the Amphitheater at The Wharf came up.  We often talk about the positive influence that The Wharf has made on our area and upcoming events and the entertainers that are scheduled.

I just checked the web site and the first three acts of 2008 are posted!

Now, I’m a country music fan so I think the first event of the year is great.  Alan Jackson will kick off the year on March 1st.  Alan has been a pure country music writer and performer for two decades with numerous smash hits including A Lot About Livin’ (And a Little ‘Bout Love) and Where Were You (When the World Stopped Turning).

The very next night on March 2nd the headliner is a band called Three Days Grace.  Wikipedia describes their genre as Alternative Metal and Post Grunge.  Uh, Okay.  I really can’t add to that.

Corey Smith comes up on March 15th.  Corey is an up and coming country/southern rock artist that looks to have promise.

I’ve been very impressed with the entertainers that The Wharf has attracted in the last two years.  Their grand opening in 2006 featured Hank Williams, Jr., followed by Kansas, Three Dog Night and Montgomery Gentry.

2007 was action packed with ZZ Top, Widespread Panic, Lorrie Morgan, Brad Paisley and Willie Nelson just to name a few.

So if you are an owner or a guest in a condo in Gulf Shores, an Orange Beach condo or a Fort Morgan beach condo you will want to keep an eye on what’s going on at The Wharf.  You might just be able to catch a super show by one of your favorite performers!

I drove down to the “T” the other day, right in the midst of all of our condos in Gulf Shores.  That’s where State Highway 59 (also called Gulf Shores Parkway) meets the beach road called Beach Boulevard.  I was really happy to see construction activity going on!

Years ago there was a dive bar there called The Hangout.  It was very aptly named because for as long as I can remember people that came to the area and stayed in homes or condos in Gulf Shores, Orange Beach condos or Fort Morgan beach condos would come to…well…hang out.  It was the perfect place to sit around, have a hamburger or some fried shrimp and the cold drink of your choice.

A developer bought the whole city block a few years ago and had ambitious plans of building a mixed use array of condos, restaurants, hidden parking and a walking mall.  When the sales spigot got turned off in 2005 he very prudently decided to shelve those plans and sit on it for a while.

Now comes the home run part.  He has now decided to build a restaurant on part of the property and call it – you guessed it – The Hangout!  This is not going to be just any old restaurant.  This is going to be a 250 seat restaurant and outdoor beach club.  The plans that he has put before the Gulf Shores City Council call for a beach volley ball area, a sandy play area for the kids, an outdoor stage and a wading area surrounded by cabana.

OK, here is what I don’t understand.  The developer has asked the city to erect a $250,000 (you read that right) sign on the corner.  It would measure 42 feet tall and 20 feet wide.  He would also install a 10 ft. by 17 ft. electronic sign below the main sign and allow the city to broadcast things such as emergency messages, municipal events and water conditions.  Now I am the first to admit that I know absolutely nothing about the restaurant business but I think I would drive a 2X4 into the ground and nail a piece of cardboard on it that says “BEACH BAR!”.  But what do I know?

I do know that people who rent and own homes or condos in Gulf Shores, AL, Orange Beach condos and Fort Morgan Beach condos are always looking for a good place to eat.  Every eating establishment in the area goes on an hour or two wait by 6:30PM on any given night in the summer.

This will be a welcome addition to an area with an extreme shortage of places to eat and will most certainly be a home run if done right!

I ask this question in the spirit of the New Year and Auld Lang Syne…Should our activity in real estate in Baldwin County, AL for 2007 be forgot and never brought to mind?  The answer is a resounding “YES”!  Whew, I’m glad that one’s over.

I thought it would be enlightening to take a look at the numbers for 2007 and a few years previous.  I have used basically the same format as I use on my Market Watch page, so this will be somewhat familiar to you.

County Numbers

There are a few interesting things to note here.  The number of homes and condos sold in Baldwin County Real Estate both dropped by about a third from 2005 to 2007.  The dollar volume almost followed the trend of the numbers.  Single family homes were down by $493 million, about 30 percent.  Condos were off by $326 million which is about 25 percent.

The eye popper of the numbers above is the number and dollar volume of foreclosures that Baldwin County Real Estate has experienced in the last year.  The number of foreclosures in Baldwin County has increased by over 2 ½ times from 2005 to 2007.  The dollar volume grew by seven times.  Whoa!

But wait, let’s put that into perspective.  There were 505 foreclosures last year.  Yes that is a lot when you compare it to years past, but the number of foreclosures was still only 3½% of the total number of properties sold (14,416).  So the foreclosures are out there but not in the numbers that the media would have you believe.

Now let’s look at condo sales on Pleasure Island.  These are sales that are posted on our Multiple Listing Service and contain some Pre-Construction listings.

Sales of Condos in Gulf Shores

Orange Beach Condo Sales

Fort Morgan Beach Condo Sales

The days of flipping and 50% appreciation are gone.  The sales numbers for Baldwin County Real Estate during the last few years have been gruesome.  If you believe the newspapers and the television, you’ll want to go hide under a rock.

It has been a tough time for sellers, especially the ones that purchased property in the last few years expecting to make a quick profit.  Buyers have the upper hand. And here’s why:

• There is a lot of inventory on the market to choose from and the prices are coming down.
• This area will continue to grow.  Many Baby Boomers want to retire within 50 miles of the coast.
• Money is still available.  I don’t deny the sub-prime fiasco but lenders are in business to lend money. 
• Interest rates are at historical lows.

There are opportunities out there for all of us in Baldwin County real estate!  Let’s find them together.  I invite you to give me a call at 251-978-7118 or drop me an e-mail to John@CondosinGulfShores.com.  

John Ricks
RE/MAX of Gulf Shores
Gulf Shores, Alabama
www.CondosinGulfShores.com
John@CondosinGulfShores.com
251-978-7118