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 322 units during December, an increase of 3.5 percent from the same period last year (11 units). Year-to-date sales through December were up 13.4 percent from 2014. Two more resources to review: Quarterly Report and Annual Report.

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

Home sales in Mobile rose by 3.5 percent year-over-year during December.

Forecast: December sales were 21 units, or 7 percent, above our monthly forecast. The Alabama Center for Real Estate’s (ACRE) year-to-date sales forecast through December projected 4,112 closed transactions, while the actual sales were 4,284 units, an increase of 4 percent.

Supply: The Mobile-area housing inventory in December was 2,184 units, a decrease of 13 percent from December 2014. Inventory has now declined 35.5 percent from the December peak (3,330 units) reached in 2009. There was 6.7 months of housing supply in December 2015 (6 months represents a balanced market for this time of year) versus 8 months of supply in December 2014, a favorable decline of 16 percent. The market continues to move toward equilibrium, where buyer and seller have equal bargaining power, which is encouraging news.

December inventory in the Mobile area also decreased 6.3 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: December sales increased 12 percent from the prior month. This direction is consistent with historical data, which indicate sales, on average (2010-14), increase from November by 3.5 percent.

Existing single-family home sales accounted for 88 percent (down from 92 percent in December 2014) of total sales, while 11 percent (up from 7 percent in December 2014) were new home sales and 1 percent (unchanged from December 2014) were condo transactions.

Pricing: The Mobile area median sales price in December was $130,100, up 23 percent from last December. The December median sales price increased 5 percent when compared to the prior month. This month-over-month direction contrasts with historical data (2010-14) indicating, on average, December median sales prices decrease from November by 3.6 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: “Consumers ended the year on an improved note with regard to their income, job security, and overall economic outlook. This more positive consumer sentiment brought the HPSI up a few points, moving the index up for all of 2015,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Brightening economic prospects, if sustained, should stimulate demand for homeownership. However, continuing upward pressure on rental prices and constrained housing supply, particularly for starter homes, may mean prospective first-time homebuyers could face affordability constraints.” For full report click here.

The average sales price for a home sold in Mobile during December was $149,490.

On average, homes sold in Mobile during December spent 104 days on the market.

Inventory during December in Mobile decreased by 13 percent from 2014.

The median sales price during December in Mobile increased 23 percent to $130,100.

Mobile was one of Alabama’s most balanced markets during December with 6.7 months of supply.

Year-to-date sales in December in Mobile rose 13 percent over last year.

Home sales in December rose 12 percent in Mobile over November numbers.

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.