Mobile July home prices steady, total sales down from 2016

Mobile July home prices steady, total sales down from 2016
Sales have reduced Mobile's housing inventory 50 percent from the July peak in 2010, which is good news for those trying to sell a home. (iStock)

Click here to view or print the entire monthly report compliments of the ACRE Corporate Cabinet.

Sales: According to the Gulf Coast Multiple Listing Service, Mobile-area residential sales totaled 399 units during July, a decrease of 16.9 percent from the same month last year. Total 2016 home sales in July were 419. Year-to-date sales in the area through July are down 1.9 percent from 2016. Two more resources to review: Quarterly Report and Annual Report.

For all of Mobile’s area housing data, click here.

Forecast: July sales were 12 units, or 3 percent, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s 2017 sales forecast through July projected 2,619 closed transactions, while the actual sales were 2,623 units.

Supply: The Mobile-area housing inventory in July was 1,855 units, a decrease of 14.1 percent from July 2016. Inventory has declined 50 percent from the July peak (3,711 units) reached in 2010. There were 4.6 months of housing supply last month (6 months represents a balanced market for this time of year), down from 5.2 months in July 2016.

Demand: July sales decreased 81 units from June. This direction contrasts with historical data, which indicate July sales, on average (2012-16), increase from June by 3.4 percent.

Pricing: The Mobile-area median sales price in July was $139,900, the same median sales price from last July. The July median sales price dropped 5 percent when compared to June. Historical data indicate the July median sales prices decreased 3 percent from the month of June from 2012 through 2016. Pricing can fluctuate from month to month as the sample size of data is subject to seasonal buying patterns. ACRE highly recommends consulting with a local real estate professional to discuss prices, which can vary from neighborhood to neighborhood.

Industry perspective: “We are keeping our full-year economic growth outlook at 2 percent as risks to our forecast are roughly balanced,” said Fannie Mae Chief Economist Doug Duncan. “On the upside, consumer spending growth might not moderate as much as we have accounted for in our forecast. A build-up in inventory also should be positive for growth this quarter, and nonresidential investment in structures will likely continue to improve as oil prices stabilize.”

Click here to generate more graphs from the Mobile July Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply. 

The Mobile Area Residential Monthly Report is developed in conjunction with the Mobile Area Association of Realtors to better serve Gulf Coast consumers.

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