GULF SHORES, Ala. - One is left to wonder if demand for Gulf property is rebounding or if people are in search of a bargain, following what took place at last Saturday’s absolute auction of select Crystal Tower condominiums located at 1010 West Beach Blvd.

  Nonetheless, 44 units, owned by Pensacola based developer Collier Merrill were sold on Saturday within 59 minutes, totaling $13,026,100 in sales. The highest sale brought $352,000 while the lowest still drew an impressive $275,000 considering the recent slump in real estate sales felt along the Gulf Coast.

  William Bone, president of the National Auction Group which conducted the auction, doesn’t think demand has been a problem at all. He tends to think that the selling methods developers have been using are to blame for the decline in sales.

  “I think from Saturday’s results we’ve learned that the demand for these types of properties has been there all along among regular people, but until now regular people haven’t had the opportunity to buy these kind of properties in the way an absolute auction allows,” Bone said during a telephone interview from his Gadsden, Ala. office.

  “The auction on Saturday provided that avenue for regular people and it was evident in the response we had as opposed to what retail sales has been able to do,” he said.

  While there were a whopping 396 registered bidders, who were required to bring $10,000 in certified funds for each condo, it’s believed that as many as 1,000 people may have attended the event.

  Bone said that in addition to the overwhelming showing of interest he was most fascinated that nearly everyone who showed up, stood through heavy rain and wind for the bidding to begin.

  “We wondered several times whether or not we should reschedule the event due to the weather. “ But the people who were there kept telling us they’d come to take part in an auction and had no plans of leaving until it took place.”

  “One gentleman told me he had flown from Indiana specifically for this auction and he’d be highly upset if something kept it from happening,” Bone said.

  He added that Merrill had originally only planned to sell 30 units, while giving high bidders first choice from a limited selection. He said Merrill then decided to sell the additional 14 units because of the huge response and strong bids the condos brought.

  “Obviously, our client was satisfied with the outcome or he wouldn’t have continued to add more units,” Bone said.

  “Every developer on the Gulf Coast was a winner from this auction, as it clearly demonstrates the pent-up demand and shows that there’s no reason for condo developers to sit on unsold inventory when it can be sold efficiently and quickly by auction even in a tough real estate market.”

  Bob Shallow, owner of Remax Paradise in Orange Beach, agrees the auction demonstrates pent-up demand, but specifically for condos within the $275,000 to $350,000 range, a price range that usually results in properties being used by the buyer rather than resold.

  “I have a lot of respect for the National Auction Group and think they do a really great job, but I think if people work to lower their prices to reality they can sell a lot more,” Shallow said. “These units were originally listed in the $400,000 range and had they been sold in the spring at Saturday’s prices they would have sold like hotcakes.”

  “The method of an absolute auction scares a lot of people and throughout history it’s been proven that greater return is achieved using a realtor. “I don’t think having an auction right now is a terrible thing, because it moves inventory, it’s when people do nothing that we have major problems.”