Q2 2017 MARKET REVIEW | GULFSHORE BOULEVARD MARKET AREA
This report is intended to give a broad view of market activity and trends among waterfront condominiums on Gulf Shore Boulevard. Buildings on the beach and bay vary significantly in size, condition, age and amenities, and this can impact average sales price and average price per square foot. Buyers and sellers are advised to seek the help of a John R. Wood Properties sales professional for information regarding any property in which there is specific interest.
The second quarter is historically the most active for condominium closings on Gulf Shore Boulevard. This year is no exception, and although no new second-quarter records were set for the number of closings, the year-over-year increase on the beachfront for the period was an impressive 39%!
Available inventory on both the bay and the beach is approximately the same as this time last year, but months-of-supply has decreased. At the end of Q2 2016, months-of-supply on the bay stood at 8.6 months and this year at 4.3 months. The decline on the beach is even more impressive – from a 12-month supply last year to 5.9 months at the end of Q2 2017.
Average sales price on the beach for the quarter remained fairly consistent with prior year, down less than 3%, while the bay posted an increase of 18.5%.
Remember that average sales price can be substantially impacted by one or two large sales, and it is possible that this is what happened to the quarterly average on the bay, where there were two closings at Charleston Square this year and none (through MLS) in the second quarter of 2016.
At the end of the second quarter there were 25 condominiums available for sale on the bay at an average list price of $583,492, or $437 per-square-foot. There were 90 residences on the beach with an average list price of $2,100,542, or $762 per-square-foot. This represents 4.3 months-of-supply on the bay and 5.9 months on the beach based on the current sales pace.
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Quarterly Number of Closed Sales (Exhibit 1a & 1b)
The number of closed condominium sales on the beach during the second quarter increased 39% over Q2 2016 with 75 closings vs. 54 in the prior year. Sales on the bay were static with 22 sales during Q2 2017 vs. 23 last year.
The beachfront buildings with the most activity were Lausanne and Meridian Club with five sales in each building, followed by Bayshore Place, Gulf View and Westgate, each of which had four sales. On the bayfront, Bordeaux Club, Boulevard Club, Charleston Square and Executive Club recorded two sales in each building.
Average Sales Price - Closed Sales
Quarterly Average Sales Price (Exhibits 2a & 2b)
The average price paid for condominiums on the beach in Q2 2017 was $1,487,602, a slight drop from $1,531,359 posted in the same quarter a year earlier. There were 12 sales over $2M and 2 sales above $6M during the quarter, which is the same as Q2 2016.
The average price on the bay was $630,745, up 18.5% over the same quarter in 2016.
Average Price Per Square Foot - Closed Sales
Average Price Per Square Foot (Exhibits 3a & 3b)
The average price-per-square-foot for beachfront units dropped to $642 in the current quarter, down from $697 psf for the same period in 2016.
The average price-per-square-foot on the bayfront declined from $412 psf in 2016 to $372 in the current quarter.