Sales: According to the Mobile Area Association of Realtors, Mobile-area residential sales totaled 350 units during October, up 3.6 percent from 338 sales in the same month a year earlier. October sales were down 8.6 percent compared to 383 sales in September. Results were 8.4 percent above the five-year October average of 323 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 October were 1,536 units, a decrease of 11.2 percent from October 2017’s 1,730 units and a decrease of 4 percent from September 2018’s 1,600 units. Mobile also experienced a year-over-year decline in months of supply. October months of supply totaled 4.4 months, a decrease of 14.3 percent from October 2017’s 5.1 months of supply. October’s months of supply increased from September’s 4.2 months of supply.
Pricing: The Mobile median sales price in October was $145,000, an increase of 2.5 percent from one year ago and unchanged from the prior month. This direction is inconsistent with historical data (2013-17) indicating that the October median sales price on average decreases from September by 10.4 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 October was 60 days, a decrease of 14.3 percent from 70 days in October 2017 and a decrease of 3.2 percent from 62 days in September.
Forecast: October sales were 20 units, or 5.4 percent, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 370 sales for the month, while actual sales were 350 units. ACRE forecast 3,927 residential sales in the Mobile area year-to-date, while there were 3,935 actual sales through October.
ACRE’s statewide perspective: While nationwide sales declined 2.6 percent during October, residential sales in Alabama continued to grow during the fall of 2018. Total residential sales in Alabama increased 9.1 percent year-over-year from 4,473 to 4,880 closed transactions. Year-to-date through October, statewide residential sales are up 7 percent from 48,745 one year ago to 52,163 currently. Home price appreciation in the state continued to grow as the median sales price in October increased 7.1 percent year-over-year from $146,458 to $156,872. The year-to-date median sales price is up 4.8 percent from 2017. Although nationwide inventory levels increased 2.8 percent in October, Alabama’s residential inventory decreased 9.2 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices throughout 2018. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during October spent an average of 98 days on the market, an improvement of 15 days from 2017.
NAR’s national perspective: During October, nationwide inventory for existing homes increased 2.8 percent year-over-year from 1.8 million to 1.85 million residential listings. According to Lawrence Yun, chief economist for the National Association of Realtors, “As more inventory enters the market and we head into the winter season, home price growth has begun to slow more meaningfully. This allows for much more manageable, less frenzied buying conditions.”
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.