3 Reasons To Buy a Home Before Spring
Let’s face it — buying a home can feel like a challenge with today’s mortgage rates. You might even be thinking, “Should I just wait until spring when more homes hit the market and rates might be lower?” But here’s the thing, no one knows for sure where mortgage rates will go from here, and waiting could mean facing more competition, higher prices, and a lot more stress. What if buying now — before the spring rush — might actually give you the upper hand? Here are three reasons why that just might be the case. 1. Less Competition from Other Buyers The winter months tend to be quieter in the real estate market. Fewer people are actively looking for homes, which means you’ll likely face less competition when you make an offer. This makes the process feel less rushed and less stressful. According to the National Association of Realtors (NAR), homes sit on the market longer in winter compared to spring and summer (see graph below): Fewer buyers in the market means you’ll likely have more time to make thoughtful decisions. It also means you may have more negotiating power. According to the Alabama Association of Realtors: “A significant benefit of buying a home in winter is the reduced competition. Because of the perceived benefits of spring, many buyers delay the start of their house hunt. As a result, you will find fewer people competing for the same properties during winter. Less demand can translate into more negotiating power as sellers may be more willing to entertain offers or agree to concessions to get a deal closed quickly.” 2. More Negotiating Power With homes staying on the market longer, sellers may be more willing to negotiate. This can lead to better deals for you as a buyer, whether that means a lower price or added incentives, like sellers covering closing costs or making repairs. As Chen Zhao, an Economist at Redfin, points out: “. . . buying during the off season means less competition from other buyers. That means potentially negotiating a better deal.” Plus, when demand is lower, sellers often feel more pressure to work with serious buyers. This could give you an edge to negotiate terms that work best for your situation. 3. Lock in Today’s Prices Before They Rise Historically, home prices tend to be at their lowest point in the winter months, too. According to data from NAR, home prices last year were at their lowest in January, February, and March — right before the spring buying season kicked in (see graph below): This trend isn’t new — Bright MLS shows between 2010 and 2024, home prices in January and February were, on average, 15% lower than during the month of peak home prices (typically June). Buying in the off-season means you’re more likely to avoid paying the premium prices that come with the high demand of spring. On top of that, home prices generally appreciate over time, meaning they tend to go up year after year. That means if you’re ready to buy and you can make it happen, you’re not only taking advantage of what might be the lowest prices of the year, but you’re also locking in today’s price before it increases in the future. Bottom Line While spring may seem like the obvious time to buy, moving before the peak season can give you significant advantages, like less competition, more negotiation power, and lower prices. If you’re ready to explore your options, let’s connect.
Soaring Opportunities: How New Commercial Flights to Gulf Shores Boost Local Real Estate and Businesses
The Gulf Shores and Orange Beach areas are on the cusp of a transformative shift, thanks to Allegiant Airlines’ announcement of six new direct flights to Gulf Shores International Airport beginning in May 2025. These flights will connect Gulf Shores to Knoxville, TN; Cincinnati, OH; Houston, TX; Bentonville/Fayetteville, AR; Belleville, IL; and Kansas City, MO. As accessibility improves, real estate investors, developers, and residents alike are preparing for significant changes in this vibrant coastal community. Coupled with Baldwin County’s ongoing population growth and the Mobile Bay region’s emergence as a major shipping hub, these new flight routes are set to enhance the area’s economic and residential appeal. Increased Tourism and Short-Term Rental Demand Direct flights from cities like Houston, Cincinnati, and Kansas City will significantly expand the pool of tourists visiting Gulf Shores and Orange Beach. More convenient access for travelers means an inevitable boost to the local short-term rental market. Vacation properties are likely to see increased demand, prompting higher occupancy rates and rental incomes. Investors should expect a surge in interest for properties that can be converted into vacation rentals. Waterfront homes, condos with beach access, and properties near popular attractions will likely see the highest demand. With the increased visibility of Gulf Shores as a destination, real estate prices for these properties may climb as the market adjusts to the influx of visitors. Baldwin County’s Population Boom Baldwin County, already recognized as one of Alabama’s fastest-growing regions, is experiencing sustained growth due to its attractive quality of life, economic opportunities, and natural beauty. The new flight routes will only amplify this trend, making it easier for out-of-state buyers to consider the area for second homes, retirement, or relocation. The county’s population growth is driving demand for single-family homes, townhouses, and planned communities. Developers are responding with new housing projects to accommodate the influx of residents. The improved connectivity offered by Allegiant Airlines is likely to further accelerate these developments, particularly in areas with convenient access to Gulf Shores and Orange Beach. The Rise of Mobile Bay as a Shipping Hub The growth of Mobile Bay as a major shipping port is another key factor influencing South Baldwin County real estate. As the port expands, it brings increased economic activity and job opportunities to the region, particularly in logistics, manufacturing, and trade. This economic vitality spills over into surrounding communities, including Gulf Shores and Orange Beach, creating a ripple effect that bolsters the housing market. Additionally, businesses relocating to or expanding in the Mobile Bay area will likely attract new residents, further increasing demand for housing. Professionals seeking proximity to both work and leisure are likely to be drawn to Gulf Shores for its unique combination of coastal living and economic opportunity. Long-Term Impacts on Real Estate The convergence of these factors positions Gulf Shores and Orange Beach as prime targets for real estate growth over the next decade. Here are some anticipated long-term effects: Rising Property Values: As demand grows, property values across Gulf Shores and Orange Beach are expected to increase, particularly for homes near the beach or in high-demand neighborhoods. Luxury Market Expansion: Affluent buyers seeking second homes or investment properties will likely drive growth in the luxury real estate market, with high-end condos and custom-built homes becoming even more desirable. Increased Infrastructure Investment: The influx of visitors and residents will necessitate improvements in local infrastructure, including roads, schools, and public amenities, further enhancing the area’s appeal. Diverse Housing Options: Developers will likely diversify housing stock to meet the needs of a growing and varied population, from young professionals to retirees. Opportunities for Local Business: Increase in new visitors and residents means increased demand for goods and services, presenting significant growth opportunities for entrepreneurs and established businesses alike. For investors, the timing couldn’t be better to explore opportunities in Gulf Shores and Baldwin County. The new flights provide a clear signal that the region is becoming a more prominent destination, both for leisure and for living. Whether focusing on short-term rentals, residential developments, or commercial properties to support the growing economy, there are opportunities to capitalize on this growth trajectory. The Bottom Line Allegiant Airlines’ new direct flights, combined with Baldwin County’s population growth and the rise of Mobile Bay as a shipping hub, are set to reshape the real estate landscape in Gulf Shores and Orange Beach. These changes will bring a wealth of opportunities for investors, developers, and residents, solidifying the region’s status as a premier destination for both tourism and coastal living. By staying ahead of these trends, stakeholders can position themselves to benefit from Gulf Shores’ promising future. With its pristine beaches, vibrant community, and now even greater accessibility, Gulf Shores is truly soaring into the future. Interested in learning more about Gulf Shores real estate opportunities? Contact Byron Taylor at REAL today!
2024 SOUTH BALDWIN Q3 MARKET UPDATE
We've wrapped up another summer season on the beaches of Alabama and we are deep into the the "locals summer". The weather is still nice and the beaches and restaurants are less crowded. Locals truly love this time of year. If you are not a local full time or part time, you should be and I can help you make that happen. The ongoing story for 2024 is interest rates and their affect on sales volume. In South Baldwin County all markets are showing lower units sold except for Eastern Shore markets of Fairhope, Daphne and Spanish Fort. With this slow down in sales one would expect prices to come down or at least flatten out. This has been the case throughout most of South Baldwin with the exception of Gulf Shores Single Family Homes. This category has seen an increase in both median price (27%) and Price Per Sq Ft (12%) over Q3 of 2023 due in part to new construction in the luxury sector. What is the outlook going into Q4 and 2025? Mortgage rates are projected to dip down below 6% providing and actual and psychological boost in purchasing power and sentiment for buyers. According to Bankrate 35% of homeowners would be motivated to move if rates fall under 6%. With rates heading in the right direction, although very slowly, and pent up pressure from those waiting on sidelines. the expectation for 2025 is for sales volume to begin increasing again. The good news for both buyers and sellers is they can get what they want with patience, diligence and the right agent working for them.
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