Sales: According to the Baldwin County Association of Realtors Multiple Listing Service, Baldwin County condo sales, which include condos along the Gulf Coast, totaled 133 units during July, down 35.7 percent from 207 sales in the same month a year earlier. July sales were down 4.3 percent compared to 139 sales in June. Results were 11.3 percent below the five-year July average of 150 sales. Two more resources to review: Quarterly Report and Annual Report.
For all of Baldwin County’s condo sales data, click here.
Inventory: Baldwin County condo inventory totaled 693 units, a decrease of 7.1 percent from July 2017’s 746 units, and a decrease of 1.3 percent from June 2018’s 702 units. Baldwin County condos experienced an increase in months of supply. July months of supply totaled 5.2 months, an increase of 44.6 percent from July 2017’s 3.6 months of supply. Similarly, July’s months of supply increased slightly from June’s 5.1 months of supply.
Pricing: The Baldwin County condo median sales price in July was $263,000, a decrease of 35.1 percent from one year ago and a decrease of 22 percent from the prior month. This direction is inconsistent with historical data (2013-17) indicating that the July median sales price on average increases from June by 8.3 percent. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood. The average number of days on the market (DOM) for condos sold during July was 72 days, a decrease of 52.3 percent from 151 days in July 2017 and a decrease of 21.7 percent from 92 days in June.
Forecast: July sales were 15 units, or 10.1 percent, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 148 sales for the month, while actual sales were 133 units. ACRE forecast a total of 947 residential sales for Baldwin County condos year-to-date, while there were 952 actual sales through July.
ACRE’s statewide perspective: Residential sales in Alabama continued to grow during the second quarter of 2018. Total residential sales increased 10.4 percent year-over-year from 16,450 to 18,157 closed transactions. Home price appreciation in the state also continues its upward trajectory, as the median sales price during the second quarter increased 4.3 percent year-over-year from $155,278 to $161,975. Mirroring national trends, statewide inventory decreased 9.4 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices during the second quarter. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during the second quarter of 2018 spent an average of 98 days on the market, an improvement of 24 days from 2017.
NAR’s national perspective: During June, nationwide sales volume for existing homes decreased 5 percent year-over-year from 600,000 to 570,000 closed transactions. According to Lawrence Yun, chief economist for the National Association of Realtors, “there continues to be a mismatch since the spring between the growing level of home buyer demand in most of the country in relation to the actual pace of home sales, which are declining. The root cause is without a doubt the severe housing shortage that is not releasing its grip on the nation’s housing market. What is for sale in most areas is going under contract very fast, and in many cases has multiple offers. This dynamic is keeping home price growth elevated, pricing out would-be buyers and ultimately slowing sales.”
Click here to view the entire monthly report.
The Baldwin County Condo Monthly Report is developed in conjunction with the Baldwin County Association of Realtors to better serve both local and worldwide consumers interested in the beaches along Alabama’s Gulf Coast.