Sales: According to the Gulf Coast Multiple Listing Service, Mobile-area residential sales totaled 463 units during August, an increase of 6.2 percent from the same month last year. Total 2016 home sales in August were 436. Year-to-date sales in the area through August are down 0.8 percent from 2016. Two more resources to review: Quarterly Report and Annual Report.
For all of Mobile’s area housing data, click here.
Forecast: August sales were 77 units or 19.95 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s 2017 sales forecast through August projected 3,005 closed transactions, while the actual sales were 3,086 units.
Supply: The Mobile-area housing inventory in August was 1,939 units, a decrease of 9.4 percent from August 2016. Inventory has declined 47.7 percent from the August peak (3,709 units) reached in 2010. There were 4.2 months of housing supply last month (6 months represents a balanced market for this time of year), down from 4.9 months in August 2016.
Demand: August sales increased 64 units from July. This direction contrasts with historical data, which indicate August sales, on average (2012-16), decrease from July by 5.6 percent.
Pricing: The Mobile-area median sales price in August was $141,819, an increase of 6.2 percent when compared to the median sales price from last August. The August median sales price increased 16 percent when compared to July. Historical data indicate the August median sales prices typically decreased 3.9 percent from the month of July from 2012 through 2016. 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: “For the first time in 2017, we have increased our full-year growth outlook. The upgrade reflects economic activity gaining momentum at the end of the second quarter, though we see a great deal of uncertainty surrounding the forecast,” said Fannie Mae Chief Economist Doug Duncan. “The list of uncertainties now extends beyond the geopolitical and legislative, as the effects of Hurricanes Harvey and Irma will require time to untangle. Historically, natural disasters that hit heavily populated areas led to substantial near-term declines in economic activity but meaningful rebounds in subsequent quarters due to rebuilding efforts. Thus, economic growth in the second half of 2017 could still average a slightly stronger pace than the first half. Unfortunately, we continue to expect home sales to be flat during the second half of the year compared to the first half due to strong home price appreciation and lean inventories.”
Click here to generate more graphs from the Mobile August Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.
The Mobile Area Residential Monthly Report is developed in conjunction with the Mobile Area Association of Realtors to better serve Gulf Coast consumers.