Gulf Shore Getaway

There is an old saying in investments, "Never sell sin short." This little four word rule is a reminder to investors that although near term prices will fluctuate, the prices for things people simply want will always trend upward.

Dauphin Island is one of those sinful things. Despite the risks, people want to own and invest in Dauphin Island real estate; and this means prices for vacation rental condos and homes will always trend upward.

As evidence, look no further than the story in today's Mobile Register, which points out that Dauphin Island real estate prices are firm and climbing despite a supply that is nearly four times what it was this time last year.

There are 113 lots listed for sale on [Dauphin Island], compared with 29 lots last May, and 139 homes, where only 41 homes were available in May.

But prices remain similar to pre-Katrina numbers, agents said. The lots range from $98,500 for an inland lot to $1.2 million for a beach front lot in DeSoto Landing. The homes and condo units are priced from $179,000 to $1.8 million.

Despite the upward pressure on real estate prices, however, Dauphin Island real estate remains a comparative bargain. According to the article Dauphin Island real estate prices were about $8,000 per foot for beach front property last spring. As a comparison, prices in Gulf Shores averaged $10,000 to $12,000 per foot.

With the Dauphin Island condo construction currently underway, it won't be long until these price differentials disappear.

Link