Mandoki Realty

Real Estate Corner
by Joe Savage, Associate Broker


2014 REAL ESTATE SALES SUMMARY
GULF SHORES PLANTATION

In this issue we review the real estate sales stats for 2014. Below is a table showing the key statistics of units sold for 2013 and 2014. The “price per square foot” metric is used as the median of all units sold in each year.

#	METRIC	2013	2014	% INC/DEC
1	TOTAL CONDOS SOLD	38	41	7.89%
	MED PRICE/SQ FT - ALL CONDOS	$176.00	$193.00	9.94%
2	TOTAL 2BR SOLD	29	29	0.00%
	MED PRICE/SQ FT - ALL 2BR CONDOS	$171.97	$181.53	5.56%
3	# SOLD - EAST 2 BR	13	17	30.77%
	MED PRICE/SQ FT	$162.76	$159.24	-2.16%
4	# SOLD - DUNES 2 BR	7	2	-71.43%
	MED PRICE/SQ FT	$210.00	$218.00	3.81%
5	# SOLD - PALMS 2 BR	3	6	100.00%
	MED PRICE/SQ FT	$224.04	$226.00	0.87%
6	# SOLD - WEST 2 BR	6	4	-33.33%
	MED PRICE/SQ FT	$167.50	$191.00	14.03%

Number 1:  These two rows display data for all condos sold here at Plantation, regardless of floor plan, square feet, location and HOA. As can be seen, we seemed to be “flattening out” in the volume sold. It is still well above the 28 sold in 2012, though. We see a notable increase in the price per square foot, but we may need to look further into “the mix” to tease out the source(s) of this increase. For example, if more 1-bedroom sales are in the mix, their price per square foot is always higher than 2-bedroom units. This is because they have fewer square feet over which to spread the value of the land which they all sit.

Number 2:  These rows apply these same statistics to the sales of 2-bedroom units only. These are the predominant floor plan at Plantation, and so the predominant seller. It is good to see the price per square foot go up in 2BRs, but as we look at the mix across HOA’s, it becomes apparent that this increase was not equally shared by all.

Number 3:  Represent 2BR sales in Plantation East. While we saw a continued increase in volume sold (there were only 10, 2-bedroom units sold in 2012!) that came at the cost of pricing. While 2014’s price per square foot is still up from 2012’s $149, it is still pretty flat relative to 2013.

Number 4:  Represent 2BR sales in Plantation Dunes We see a pretty dramatic drop in volume sold here. The pricing increase in 2013 was notable in that 4 of the 7 sales in 2013 were west-facing units with notable updates and upgrades to their interiors and occurred in the last 4-5 months of the year.  Once those prices were publicized, many Dunes units came to market at ramped up pricing and sadly, the units appear to have just sat there as buyers went next door to shop for newer, larger units with competitive prices…they went to Palms.

Number 5: These rows represent 2BR sales in Plantation Palms. Sales volume doubled in Palms in 2014, while their price per square foot was almost flat…and very, very near the pricing in Dunes as evidenced by their respective price per square foot.

Number 6:  These rows represent Plantation West, which suffered from a Fall season under construction. The volume of units sold went down, but the pricing increase was largely the benefit of a sale of a Deluxe 2-bedroom unit. The impending repair assessment played a role in sales in 2014, as it had to be disclosed. However, we can only hope that the very work which created this assessment will turn around the values in West in the future.

In summary, 2014 showed some weaknesses in some places, but overall, it was pretty flat from year-to-year. Mandoki Realty is pleased to have continued to play its significant role in sales at The Plantation, brokering more sales than any other single brokerage in 2014. As demonstrated by this contribution, if you are considering the sale of your Plantation property, you can do no better than to list with Mandoki Realty.