Baldwin condo sales slip in October, up strongly for 2017 so far

Baldwin condo sales slip in October, up strongly for 2017 so far
The Baldwin County condo median sales price in October was $313,000, up 11.2 percent from last October. (iStock)

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

Sales: According to the Baldwin County Association of Realtors Multiple Listing Service, Baldwin County condo sales, which include condos along the Gulf Coast, totaled 113 units during October, a 10.3 percent decrease from October 2016’s 126 units. For 2017 so far, condo sales have increased 63.5 percent from the same period of 2016.

For all of Baldwin County’s condo sales data, click here.

Forecast: October sales were one unit above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s 2017 sales forecast through October projected 1,447 closed transactions. Actual sales were 1,557 units.

Supply: Baldwin County condo inventory totaled 721 units, a decrease of 11.3 percent from October 2016. The inventory was down 0.8 percent from the prior month. Historical patterns indicate that October inventory on average (2012-16) increases 1.7 percent from September. Condo inventory during October peaked in 2011 at 1,173 units. The inventory is down 38.5 percent from that peak. During October, the condo supply stood at 6.4 months, down from 6.5 months during October 2016.

Demand: Condo sales decreased 2.6 percent from September. Seasonal buying patterns and historical data trends reflect October condo sales on average (2012-16) decrease from September by 1.7 percent.

Pricing: The Baldwin County condo median sales price in October was $313,000, up 11.2 percent from last October. The median sales price increased 4.4 percent from the prior month.

Industry analysis: “The first print of third-quarter economic growth showed surprising resiliency. The expected economic hit from the recent natural disasters either failed to materialize or was drowned out by business optimism,” said Fannie Mae Chief Economist Doug Duncan. “Recent data showed a stronger pickup in domestic demand than anticipated, leading us to increase our growth forecast for the final quarter of this year and coming quarters. We also revised higher our 2018 growth forecast to 2 percent. Tax cuts, if enacted, present upside risk to our growth forecast for next year but could also lead to more aggressive Fed action. Housing still remains a drag on the economy, as shortages of labor and available lots, coupled with rising building material prices, further complicate existing inventory, affordability and sales challenges.”

The Baldwin County Condo Monthly Report is developed in conjunction with the Baldwin County Association of Realtors to better serve both local and worldwide consumers interested in the beaches along Alabama’s Gulf Coast.

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