Sales: According to the Gulf Coast Multiple Listing Service, Mobile-area residential sales totaled 329 units during October, a decrease of 7.3 percent from the same month last year (26 units). Year-to-date home sales through October rose 4.6 percent over last year. Two more resources to review: Quarterly Report and Annual Report.
For all of Mobile’s area housing data, click here.
Forecast: October sales were 28 units, or 8 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s year-to-date sales forecast through October projected 3,733 closed transactions, while the actual sales were 3,843 units, a favorable difference of 3 percent.
Supply: The Mobile-area housing inventory in October was 2,002 units, a decrease of 17 percent from October 2015. Inventory has now declined 43 percent from the October peak (3,485 units) reached in 2009. There were 6.1 months of housing supply in October 2016 (6 months represents a balanced market for this time of year) vs. 6.8 months of supply in October 2015, a favorable decline of 10 percent.
Demand: October sales decreased 19 percent from September. This direction contrasts with historical data, which indicate sales, on average (2011-15), increased from September by 1.7 percent.
Existing single-family home sales accounted for 91 percent of total sales, up from 90 percent in October 2015, while 8 percent were new home sales (up from 7 percent last October) and 1 percent were condo transactions (down from 3 percent).
Pricing: The Mobile-area median sales price in October was $135,000, up 11 percent from last October. The October median sales price decreased 2 percent when compared to September. This month-over-month direction contrasts with historical data (2011-15) indicating, on average, the October median sales prices increase from September by 0.7 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: “Since July, more consumers, on net, have steadily expected mortgage rates to rise and home price appreciation to moderate,” said Doug Duncan of Fannie Mae. “Furthermore, consumers’ perception of their income over the past year deteriorated sharply in October to the worst showing since early 2013, weighing on the index. However, this component of the HPSI (home purchase sentiment index) is volatile from month to month, and the firming trend in wage gains from the October jobs report, if sustained, may foreshadow an improving view in the near future.”
Click here to generate more graphs from the Mobile October Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.