Year-to-date home sales in Mobile up 7 percent from last year
Mobile home sales for the first half of the year are up from the same period of 2015, and sales increased from May to June as well. (iStock)
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Sales: According to the Gulf Coast Multiple Listing Service, Mobile-area residential sales totaled 437 units during June, a decrease of 0.9 percent from the same period last year (four units). Two more resources to review: Quarterly Report and Annual Report.
For all of Mobile’s area housing data, click here.
Home sales in Mobile during June were just slightly lower (four units) than the same period in 2015.
Forecast: June sales were 10 units, or 2 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s year-to-date sales forecast through June projected 2,218 closed transactions, while the actual sales were 2,255 units, a favorable difference of 1.6 percent.
Supply: The Mobile-area housing inventory in June was 2,194 units, a decrease of 16 percent from June 2015. Inventory has now declined 41.6 percent from the June peak (3,757 units) reached in 2010. There was 5 months of housing supply in June 2016 (6 months represents a balanced market for this time of year) vs. 5.9 months of supply in June 2015, a favorable decline of 15.3 percent.
June inventory in the Mobile area increased 0.9 percent from May. As seller confidence in the housing market continues to strengthen gradually, more listings for sale can be anticipated, including more home construction. This is important because the quality of inventory has become a market impediment, according to recent surveys.
Demand: June sales increased 1.2 percent from May. This direction contrasts with historical data, which indicate sales, on average (2011-15), decreased from May by 3.5 percent. Year-to-date, sales increased 6.6 percent from the first half of 2015.
Existing single-family home sales accounted for 88 percent of total sales, down from 89 percent in June 2015, while 9 percent were new home sales (unchanged from last June) and 2 percent were condo transactions (unchanged from June 2015).
Pricing: The Mobile-area median sale price in June was $138,900, up 6 percent from last June. The May median sale price increased 5 percent when compared to May. This month-over-month direction is consistent with historical data (2011-15) indicating, on average, the June median sale prices increase from May by 2.1 percent. Pricing 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: “Housing activity is gaining strength heading into the summer, with pending home sales rising to a decade high. In addition, new home sales surged to an expansion best, a positive for single-family homebuilding, especially since only a small share of new homes for sale are completed and ready to occupy,” said Fannie Mae Chief Economist Doug Duncan in the organization’s June Economic Outlook. “However, recent pullbacks in construction hiring, likely due to a shortage of skilled workers, could weigh on the outlook for the sector. With little improvement in the current housing supply picture so far, we expect only moderate housing expansion this year.” For the full report, click here
The Mobile Area Residential Monthly Report is developed in conjunction with the Mobile Area Association of Realtors to better serve Gulf Coast consumers.
