Sales: According to the Mobile Area Association of Realtors, Mobile-area residential sales totaled 444 units during April, an increase of 14.1 percent from the same month in 2017, when there were 389 residential sales. Current results are 18.4 percent above the five-year monthly average of 375 closed transactions. Two more resources to review: Quarterly Report and Annual Report.
Forecast: April sales in the Mobile area were 37 units or 9.1 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 407 total sales during April, while there were 444 actual sales during the month. ACRE’s year-to-date forecast projected 1,436 sales in the area through April, while there were 1,374 actual year-to-date sales.
Supply: The Mobile-area housing inventory in April was 1,548 units, a decrease of 18.1 percent from April 2017. Inventory has declined 56.9 percent from the 10-year April peak of 3,594 units reached in 2010.
Demand: April sales increased 16.5 percent from March. Homes selling in the area during April averaged 78 days on the market, a decrease of 23 days from the days-on-market average from the same month in 2017. Homes sold 29 days faster than the five-year April average of 107 days on the market.
Seeking balance: The inventory of homes for sale divided by the current monthly sales volume equals the number of months of housing supply. Most real estate professionals consider the market to be in balance at approximately 6 months of housing supply. The Mobile area has 3.5 months of housing supply, down from 4.9 months during the same period in 2017. The five-year average for the month of April is 6.6 months of housing supply.
Pricing: The Mobile-area median sales price in April was $148,250, an increase of 11.9 percent from this time last year. The April median sales price increased 6.7 percent from the previous month. Median sales prices 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: Statewide, residential real estate sales continued to show growth during the first quarter of 2018 as they grew 2.4 percent from the first quarter of 2017. Low inventory levels, however, played a large role in driving prices upward. During the first quarter of the year, the statewide median sales price increased 7.1 percent from one year ago. Although good news for sellers, this price growth, combined with rising interest rates, could lead to affordability issues for buyers in today’s markets.