Published On: 06.29.16 | 

By: Bryan Davis

Baldwin County May home sales hold steady compared to prior year

Home sales in Baldwin County so far in 2016 have been about the same as in the same period of 2015. (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, May residential sales in Baldwin County totaled 489 units, down 4.9 percent from last May. Year-to-date sales are 0.5 percent or 10 units below the same period last year. Two more resources to review: Quarterly Report and Annual Report.

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

Forecast: May results were 33 units or 6 percent below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s year-to-date sales forecast through May projected 2,108 closed transactions, while the actual sales were 2,134 units, a favorable difference of 1.2 percent.

Year-to-date home sales dipped slightly by 0.5 percent through May in Baldwin County.

Year-to-date home sales dipped slightly by 0.5 percent through May in Baldwin County.

Supply: The Baldwin County housing inventory in May was 2,939 units, a decrease of 6.1 percent from May 2015. The area’s housing inventory has declined by 55 percent from the May peak in 2007 (6,501 units). There was 6 months of housing supply in May (with 6 months considered equilibrium for May) vs. 6.3 months of supply in May 2015. This is up from April’s 5.9 months of supply.

Demand: Baldwin County residential sales decreased 0.2 percent from April. This direction contrasts with local historical data indicating that May sales, on average (2011-15), increase from April by 14.2 percent.

Existing single-family home sales accounted for 64 percent of total sales (up from 60 percent during May 2015), while 11 percent (up from 9 percent during May 2015) were new home sales and 35 percent (up from 29 percent during May 2015) were condo sales.

Pricing: The Baldwin County median sales price in May was $215,700, a decrease of 2 percent from last May ($220,000). The median sales price decreased 2 percent from the prior month. The data contrasts with historical data that indicate on average (2011-15) the May median sales price increases from April by 0.3 percent. ACRE highly recommends consulting with a real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood.

Industry perspective: “Continued home price appreciation has been squeezing housing affordability, driving a two-year downward trend in the share of consumers who think it’s a good time to buy a home,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “The current low mortgage rate environment has helped ease this pressure, and fewer than half of consumers expect rates to go up in the next year. While the May increase in income growth perceptions could provide further support to prospective home buyers as the spring/summer home-buying season gains momentum, the effect may be muted by May’s discouraging jobs report.” For the full report on home purchase sentiment, click here.

The Baldwin County Residential Monthly Report is developed in conjunction with the Baldwin County Association of Realtors to better serve gulf coast consumers.