Today’s market opens improving, as absorption dropped from yesterday and continues to trend better than this time last year.
Absorption Rates (Months of Inventory)
- Orange Beach: 13.1 (↓ from 14.4)
- Gulf Shores: 10.9 (↓ from 11.0)
- Ft. Morgan: 7.3 (↓ from 9.2)
Overall Market: 11.1 months
Yesterday: 12.3 months
Daily Change: Market improved (absorption down 1.2 months)
Yesterday: 12.3 months
Daily Change: Market improved (absorption down 1.2 months)
Core Markets: 12.3 months
This Time Last Year: 17.3 months
This Time Last Year: 17.3 months
Market Interpretation
The market improved today as absorption decreased, meaning inventory is being absorbed faster than yesterday. While the market is still considered slow, the overall trend compared to last year shows a significantly healthier market, with the core markets improving from 17.3 months of inventory last year to 12.3 months today.
Trend Direction: Improving
What This Means
For Sellers:
The market is not fast, but it is improving. Properties that are priced correctly are the ones selling, and as absorption continues to trend downward, sellers who position themselves ahead of the market will be the ones who sell first.
The market is not fast, but it is improving. Properties that are priced correctly are the ones selling, and as absorption continues to trend downward, sellers who position themselves ahead of the market will be the ones who sell first.
For Buyers:
Buyers still have negotiating power due to overall inventory levels, but the market is showing signs of improvement, which means the best opportunities tend to be the properties that have been on the market longer.
Buyers still have negotiating power due to overall inventory levels, but the market is showing signs of improvement, which means the best opportunities tend to be the properties that have been on the market longer.
Understanding Absorption Rate
The absorption rate measures how quickly the current inventory of properties is selling. For this report, we review the prior 30 days of closed sales and compare that pace to the number of active listings today.
In practical terms:
- A lower absorption rate (fewer months of supply) indicates a stronger, more competitive market.
- A higher absorption rate (more months of supply) suggests slower activity and increased inventory levels.
Traditionally:
- Around six months of supply reflects a balanced market.
- Below six months favors sellers.
- Above six months favors buyers.
The absorption rate can apply to a city, neighborhood, subdivision, or a single condominium complex. This report specifically reflects Gulf-front condominiums within Orange Beach, Gulf Shores, and Fort Morgan.
