Located on the eastern shoreline of Mobile Bay sits the town of Daphne, a charming, family-oriented community with Southern hospitality and breathtaking natural beauty. This Eastern Shore city has a rich history, dating back to early Native American hunter-gatherer tribes and early settlement by Europeans.
Daphne is known as the “Jubilee City,” thanks to a natural phenomenon bringing many fish, shrimp, and crabs to the shallow waters of the Mobile Bay shoreline that runs along the city. Life in this coastal gem is idyllic, and Daphne has become one of Alabama’s most highly sought-after cities.
The Daphne housing market is unique, spanning everything from bayside cottages to sprawling estates. And thanks to the moderate cost of living in Daphne, high quality of life ratings, and favorable market forecasts, the 2023 real estate market forecast is strong.
Daphne’s dynamic market
Daphne’s real estate market is ever-evolving based on interest rates, housing inventory, and net migration movement. As the market moves towards equilibrium, the real estate outlook for Daphne for the rest of the year is unfolding with positive prospects. The National Association of Realtors (NAR) named the Daphne-Fairhope-Farley one of the nation’s top 10 “hidden gem” markets, signaling that homes in this area will see solid appreciation rates.
As of May 2023, the average sales price in Baldwin County was about $350,000. Statewide, homes are spending less time on the market than earlier this year, which is a positive for sellers. The average days on the market for January 2023 was 78, compared to just 53 in April. Meanwhile, Baldwin County homes are spending 58 days on the market. Expect the market to heat up even more as we progress through summer 2023.
Supply and demand
Home inventory in the Daphne area continues to fall slightly behind the pace of buyer demand, seeing small but steady increases each month. As of May 2023, the average sales price in Baldwin County was up about 18% year-over-year. There are also more homes on the market. Together, these trends suggest Daphne is eliciting high demand among prospective buyers.
The above statement also fits statewide trends, as the housing supply shows slight monthly growth. By way of background, supply is measured by how many months it would take to sell all the homes on the market. This number hit lows between late 2020 and throughout 2021. Supply began increasing steadily through 2022. As of May 2023, the Alabama Association of Realtors predicts that the state housing supply will be 2.6 months.
Demand in the Daphne market looks to grow as the area is predicted to experience steady population growth over the next 15 years. Thanks to its ideal location, the moderate overall cost of living, and great local schools, Daphne continues to be an in-demand community on Mobile Bay’s Eastern Shore. Would-be investors can expect long-term growth and persistent demand in Daphne.
With a low supply, the Daphne market is currently favorable to sellers but is moving towards a more neutral market space. We could see slowing appreciation rates and houses linger on the market. Buyers will enjoy more leverage, while macroeconomic conditions (especially interest rates) will remain significant in all transactions.
Housing trends in Daphne
Prospective homebuyers in Daphne have signaled that they are willing to be selective about their dream home and have specific wants for a property. Some of the most important factors for prospective buyers include location, condition, price, and future growth. With an eye towards these conditions, buyers are careful in selecting their future Daphne home.
Modern homebuyers have a new set of standards for a property. Some of the most important things for young professionals and families with children are excellent local schools, modern appliances, easy-to-maintain interior and exterior spaces, and low-maintenance landscaping. And as more people move to remote or hybrid working conditions, homebuyers are looking for homes with dedicated office space and high-speed internet connections.
Those looking to sell their Daphne home should consider these demands to make their home marketable for modern buyers. Well-maintained, easy-to-care-for outdoor spaces are an excellent investment for those looking to put their home on the market in the coming year. A staging strategy highlighting usable office space and marketing tools highlighting remote work capability would be wise. And showcasing features like a large lot or bayside access will set your Daphne home apart from others on the market.
Key takeaways
- High median home sale prices will persist in Daphne
- Supply is catching up with buyer demand but has not reached an equilibrium
- The overall market will be neutral into late 2023
- Homebuyers are favoring location, predicted growth, and amenities
An experienced real estate team
An experienced local agent can help you navigate the Daphne market. As Daphne’s housing market responds to national factors like interest rates and inflation, successful buyers and sellers rely on expert realtors to help them navigate the complicated real estate process. With a proven record, knowledge of micro-market conditions, and insight into real estate trends, an expert local agent can best advise buyers and sellers on the overall Daphne real estate market forecast for the coming year.
If you are looking to buy or sell in Daphne, an expert local agent is the most essential member of your team. Bo Nichols has nearly 20 years of experience in the Mobile Bay and Eastern Shore real estate market. His expert knowledge of the Daphne real estate market will make your real estate transaction easy and seamless.
Bo and his team have proven marketing strategies, strong connections to market professionals, and a proven record of success. As you are considering buying or selling your Mobile Bay and Eastern Shore area home, contact Bo for superior customer connection, market knowledge, and concierge-level service.
*Header photo courtesy of Bo Nichols
