Welcome to the latest snapshot of the real estate market along Alabama’s Gulf Coast. Whether you’re considering buying, selling, investing, or simply staying informed, understanding current trends helps you make the best decisions for your lifestyle and financial goals. In this edition, we’ll cover statewide patterns, local specifics for the coast (especially areas like Gulf Shores, AL), and what you should watch going into the remainder of 2025.

Statewide & Regional Trends

• Across Alabama, the median home sale price in September 2025 was approximately $293,600, showing a +4.5% year-over-year increase.
• Inventory is rising: active listings in Alabama have grown significantly — one report cited nearly a +30% year-over-year increase in active listings.
• In coastal and resort-areas (e.g., Baldwin County, AL), new listings are rising and sales volumes have increased in certain months.

Takeaway: Alabama remains relatively affordable compared to many coastal markets. For buyers, rising inventory means more choice. For sellers, it’s a reminder to be strategic on pricing and market timing.

Gulf Coast Specifics (Gulf Shores / Baldwin County)

Let’s zoom in on the Gulf Coast — especially Gulf Shores and nearby Baldwin County, which tend to behave differently from non-resort markets.

• In Gulf Shores, the average home value is around $458,000, down about 3.3% over the past year.
• For August 2025, the median listing price in Gulf Shores was about $540,000, and the median sold price around $465,000.
• Homes in the 36542 ZIP (Gulf Shores area) now average ~121 days on market.

Key Trends:

• Luxury, waterfront, and short-term rental-friendly properties remain strong drivers of buyer interest.
• As inventory increases and competition eases, pricing strategy, condition of property, and appeal to rental/second-home market matter more than ever.
• Sellers of non-premium properties may face more pressure; buyers may have more leverage than in the peak years.

What This Means for You

If You’re a Buyer

• Great time to shop: More inventory + less frenzied competition = negotiating power.
• Prioritize: location (waterfront vs inland), ability to rent (if second home), condition of home.
• Expect a slightly longer timeline: properties may sit on the market for 3-4+ months in some Gulf Shores segments.
• Align financing and inspections early so when you find a strong property, you’re ready.

If You’re a Seller

• Pricing is key: Over-pricing may result in the property sitting on market and selling for less.
• Condition and presentation matter even more in this slower-than-2021 market.
• Highlight strengths: rental history, waterfront/lifestyle features, turnkey condition.
• Be realistic on timing — allow for a longer marketing period and budget accordingly.

If You’re an Investor / Second-Home Buyer

• Gulf-Coast appeal remains strong: short-term rental potential, lifestyle factors, vacation-home demand.
• But with more inventory and slower absorption, the best deals now go to those who act and execute smartly.
• Consider property management, carry costs, and how rental demand may fluctuate (seasonality matters).

Looking Ahead: What to Watch

• Interest Rates: Any further declines could boost affordability and buyer activity.
• Inventory Trends: If listings continue to rise, buyer leverage will strengthen further.
• Economic & Tourism Drivers: Tourism, coastal-lifestyle demand, infrastructure (roads, bridges) influence demand in places like Gulf Shores.
• Second-Home & Rental Market: The strength of vacation/rental demand will impact waterfront and resort-area properties.
• Local Zoning/Regulations: Especially for short-term rentals or waterfront properties, regulatory shifts can matter.

Final Thoughts

The Gulf Coast Alabama real estate market is evolving. For those who remember the rapid-pace of pandemic-era buys, things are a bit more measured — but opportunity remains. Whether you’re buying, selling, or investing, the story is: balance is returning, and being informed + prepared gives you the edge.

If you’d like a personalized market snapshot for a specific neighborhood (e.g., Foley, Orange Beach, Fairhope) or property type (condo, waterfront, investment), contact us and we’ll pull the data together for you.