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 287 units during November, an increase of 6.3 percent from the same period last year (270 units). Year-to-date sales through November were up 14.2 percent from 2014. Two more resources to review: Quarterly Report and Annual Report.

Forecast: November sales were 12 units, or 4 percent, below our monthly forecast. The Alabama Center for Real Estate’s (ACRE) year-to-date sales forecast through November projected 3,811 closed transactions, while the actual sales were 3,962 units, an increase of 3.9 percent.

November home sales in Mobile rose 6.3 percent over the same period last year.

Supply: The Mobile-area housing inventory in November was 2,293 units, a decrease of 14 percent from November 2014. Inventory has now declined 33 percent from the November peak (3,429 units) reached in 2009. There was 8 months of housing supply in November 2015 (6 months represents a balanced market for this time of year) versus 9.9 months of supply in November 2014, a favorable decline of 19 percent. The market continues to move toward equilibrium, where buyer and seller have equal bargaining power, which is encouraging news.

November inventory in the Mobile area also decreased 1.1 percent from the prior month. As seller confidence in the housing market continues to gradually strengthen, more listings for sale can be anticipated in the future, including more new home construction. This is important because the “quality” of inventory has become a market impediment, according to recent surveys.

Demand: November sales decreased 19.2 percent from the prior month. This direction is consistent with historical data, which indicate sales, on average (2010-14), decrease from October by 7.1 percent.

Existing single-family home sales accounted for 91 percent (unchanged from November 2014) of total sales, while 6 percent (down from 7 percent in November 2014) were new home sales and 3 percent (up from 1 percent in November 2014) were condo transactions.

Pricing: The Mobile area median sales price in November was $124,000, up 3.4 percent from last November. The November median sales price increased 1.6 percent when compared to the prior month. This month-over-month direction is consistent with historical data (2010-14) indicating, on average, November median sales prices increase from October by 7.2 percent. Pricing can fluctuate from month to month as the sample size of data (closed transactions) is subject to seasonal buying patterns. ACRE highly recommends consulting with a local real estate professional to discuss prices, which can and will vary from neighborhood to neighborhood. The 2014 Mobile-area median sales price improved 5.7 percent from 2013.

Industry Perspective: Industry Perspective: “Despite mixed housing and mortgage market data, our forecast for housing activity is little changed over the past several months,” said Fannie Mae Chief Economist  Dave Duncan. “The supply of existing homes remains lean amid slowing new single-family construction, putting significant upward pressure on home prices. While this helps boost home equity, it hurts affordability, especially for potential first-time homebuyers. Meanwhile, we expect mortgage rates to rise only gradually through next year, and an improving income trend should help support affordability. We foresee total home sales improving further in 2016, albeit at less than half of the 8.0 percent increase expected this year.” For full report click here.

The average sales price during November in Mobile rose 4 percent over the same period last year.

On average, homes spent 102 days on the market in Mobile.

Inventory has been on the decline in Mobile during November since 2008.

The Mobile market continues toward equilibrium.

Year-to-date sales in Mobile are up 14.2 percent compared to the same period last year.

Since peaking at 593 sales during November 2005, sales have held steady near the 300 mark.

Bryan Davis is the research/media coordinator for the Alabama Center for Real Estate housed within the Culverhouse College of Commerce at the University of Alabama. He can be reached at 205-348-5416 or at bkdavis@culverhouse.ua.edu. The Mobile Area Residential Monthly Report is work product developed in conjunction with the Mobile Area Association of Realtors to better serve gulf coast consumers. The ACRE monthly report is provided to illustrate the “general” market direction & trends when comparing prior periods with the most current residential data available. Real estate is local and statistics will fluctuate between areas within an area including subdivisions, and ACRE recommends that you consult a local real estate professional for “specific” advice associated with your market. The Alabama Center for Real Estate‘s core purpose is to advance the real estate industry in Alabama by providing relevant resources in the areas of research, education and outreach.