0:06
alabama's Gulf Coast with its sugar
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white sands and laid-back atmosphere
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continues to attract visitors and
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potential property owners However the
0:15
condo market in this picturesque region
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is facing significant challenges that
0:19
are reshaping the real estate landscape
0:22
The condo market along Alabama's Gulf
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Coast has experienced a sharp decline
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Sales have dropped by 17% in the past
0:29
year alone now standing at barely half
0:31
of what they were during the peak in
0:33
2021 This downturn is primarily
0:35
attributed to three interconnected
0:37
factors Skyrocketing insurance premiums
0:40
tougher lending guidelines and a Fanny
0:42
May blacklist After the tragic Surfside
0:46
building collapse in Florida in 2021
0:48
Fanny May tightened its standards for
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condos This resulted in nearly 70
0:53
Alabama condo complexes many in Gulf
0:55
Shores and Orange Beach being deemed
0:57
ineligible for federally backed loans
1:00
This ineligibility means buyers cannot
1:02
access loans with attractive rates or
1:04
low down payments for these properties
1:06
Insurance has become a major hurdle in
1:08
the coastal condo market Premiums have
1:10
tripled in many cases and some insurers
1:13
are refusing to cover the full
1:14
replacement value of buildings This has
1:17
forced condo owners to piece together
1:19
multiple insurance policies to meet
1:21
lender demands adding complexity and
1:23
cost to ownership The impact of these
1:25
challenges is felt across the market
1:28
Real estate agents are seeing deals fall
1:30
apart due to insurance issues or Fanny
1:32
May's strict rules Sellers are facing a
1:35
tough market with buyers now
1:36
scrutinizing not just location and
1:38
amenities but also insurance policies
1:40
and homeowners association reserves Some
1:43
sellers are lowering prices or choosing
1:45
to wait out the market Despite these
1:48
challenges there is still interest in
1:50
the Alabama GF Coast condo market Buyers
1:53
are particularly drawn to newer
1:55
well-maintained properties that meet
1:56
updated safety standards and are more
1:59
likely to have favorable insurance terms
2:01
Cash buyers and those with access to
2:03
flexible financing are still active in
2:05
the market Looking ahead the
2:07
fundamentals of the region remain strong
2:10
Baldwin County continues to grow
2:12
attracting new residents with its strong
2:14
schools and economy While the current
2:16
market presents challenges local real
2:19
estate professionals believe the area
2:20
will find a way through these tough
2:22
times as it has in the past For
2:24
potential buyers interested in Alabama
2:26
GF Coast condos experts recommend
2:29
working with local lenders who
2:30
understand the nuances of financing in
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this market Focusing on newer buildings
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despite potentially higher costs can
2:38
often lead to fewer complications in the
2:39
long run The allure of owning a piece of
2:42
paradise on Alabama's Gulf Coast remains
2:44
strong While the market may be
2:46
experiencing turbulence now the enduring
2:49
appeal of the region suggests that
2:51
clearer skies may be on the horizon for
2:53
the condo market Thanks for following
2:55
the latest insurance news Share your
2:58
thoughts on real estate trends and
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