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 276 units during February, an increase of 4.5 percent from the same period last year (12 units). Two more resources to review: Quarterly Report and Annual Report.

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

Forecast: February sales were 34 units, or 11 percent, below our monthly forecast. The Alabama Center for Real Estate’s (ACRE) year-to-date sales forecast through February projected 585 closed transactions, while the actual sales were 543 units, an unfavorable difference of 7 percent.

Home sales in Mobile were up 4.5 percent during February compared to 2015.

Supply: The Mobile-area housing inventory in February was 2,184 units, a decrease of 15 percent from February 2015. Inventory has now declined 37 percent from the February peak (3,457 units) reached in 2010. There was 7.9 months of housing supply in February 2016 (6 months represents a balanced market for this time of year) versus 9.7 months of supply in February 2015, a favorable decline of 18.6 percent. The market continues to move toward equilibrium, where buyer and seller have equal bargaining power, which is encouraging news.

February inventory in the Mobile area also increased 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: February sales increased 3.4 percent from the prior month. This direction is consistent with historical data, which indicate sales, on average (2011-15), increased from January by 6.9 percent.
Existing single-family home sales accounted for 92 percent (unchanged from February 2015) of total sales, while 7 percent (up from 6 percent in February 2015) were new home sales and 1 percent (down from 2 percent in February 2015) were condo transactions.

Pricing: The Mobile area median sales price in January was $116,450, down 9.3 percent from last February. The February median sales price decreased 8.3 percent when compared to the prior month. This month-over-month direction contrasts with historical data (2011-15) indicating, on average, February median sales prices increase from January by 11.5 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.

Industry Perspective: “Our February results show the most modest consumer home price expectations since late 2012,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “For consumers who think it’s a bad time to buy a home, whose share has trended up from its recent low last November, high home prices have been an increasingly contributing factor. A slower pace of home price appreciation may provide some relief for potential homebuyers, especially first-time buyers who couldn’t reap the benefits of selling a home at high prices to buy another one.” For the full story, click here.

Home sold in Mobile during the month of February sold for an average of $133,149.

On average, homes sold in Mobile during the month of February spent 112 days on the market.

Inventory for the month of February in Mobile stood at 2,184 units.

The median sales price for Mobile during February was $116,450.

There were 7.9 months of supply on the market in Mobile during February.

Inventory continued to decline for the month of February in Mobile.

Home sales rose from January and from last February.

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.