Sales: According to the Mobile Area Association of Realtors, Mobile-area residential sales totaled 428 units during July, up 7.3 percent from 399 sales in the same month a year earlier. July sales were down 10.1 percent compared to 476 sales in June. Results were 5.9 percent above the five-year July average of 404 sales. Two more resources to review: Quarterly Report and Annual Report.
For all Mobile-area home sales data, click here.
Inventory: Total homes listed for sale in the Mobile area during July were 1,573 units, a decrease of 15.2 percent from July 2017’s 1,855 units and an increase of 2.9 percent from June 2018’s 1,528 units. Mobile also experienced a year-over-year decline in months of supply. July months of supply totaled 3.7 months, a decrease of 20.9 percent from July 2017’s 4.6 months of supply. July’s months of supply slightly increased from June’s 3.2 months of supply.
Pricing: The Mobile median sales price in July was $141,188, an increase of 5.9 percent from one year ago and an increase of 4.8 percent from the prior month. This direction is inconsistent with historical data (2013-17) indicating that the July median sales price on average decreases from June by 4.9 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 homes sold during July was 70 days, a decrease of 10.3 percent from 78 days in July 2017 and an increase of 4.5 percent from 67 days in June.
Forecast: July sales were four units, or .9 percent, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 432 sales for the month, while actual sales were 428 units. ACRE forecast 2,762 residential sales in the Mobile area year-to-date, while there were 2,760 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 Mobile Area Residential Monthly Report is developed in conjunction with the Mobile Area Association of Realtors to better serve Gulf Coast consumers.