Sales: According to the Baldwin County Association of Realtors Multiple Listing Service, Baldwin County condo sales, which include condos along the Gulf Coast, totaled 97 units during December, down 14.2 percent from 113 sales in the same month a year earlier. December sales were down 13.4 percent compared to 112 sales in November. Results were 21.8 percent below the five-year average of 124 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 694 units, an increase of 3.9 percent from December 2017’s 668 units and a decrease of 3.3 percent from November 2018’s 718 units. December months of supply totaled 7.2 months, up 21 percent from December 2017’s 5.9 months of supply. December’s months of supply also increased 11.6 percent from November’s 6.4 months of supply.
Pricing: The Baldwin County condo median sales price in December was $323,000, a decrease of 4.7 percent from one year ago and a decrease of 17.8 percent from the prior month. This direction is inconsistent with historical data (2013-17) indicating that the December median sales price on average increases from November by 13.6 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 December was 94 days, an increase of 8 percent from 87 days in December 2017 and a decrease of 6.9 percent from 101 days in November.
Forecast: December sales were 28 units, or 22.4 percent, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 125 sales for the month, and actual sales were 97 units. ACRE forecast a total of 1,556 residential sales for Baldwin County condos year-to-date, while there were 1,549 actual sales through December.
ACRE’s statewide perspective: After 10 consecutive months of gains, statewide residential sales in December decreased 1.6 percent year-over-year from 4,371 to 4,303 closed transactions. For the entire year, statewide residential sales increased 6.3 percent from 57,427 in 2017 to 61,062 in 2018. Home price appreciation in the state continued to climb as the median sales price in December increased 4.7 percent year-over-year from $151,667 to $158,772. The median sales price for all of 2018 was up 4.6 percent from 2017. Although nationwide inventory levels are trending upwards, Alabama’s residential inventory decreased 6.9 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices throughout 2018. With low inventory, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during December spent an average of 102 days on the market, an improvement of 11 days from 2017.
NAR’s national perspective: During December, total existing-home sales nationwide declined 11.7 percent from approximately 427,000 one year ago to 377,000 currently. Lawrence Yun, chief economist for the National Association of Realtors, says current housing numbers are partially due to higher interest rates during most of 2018. “The housing market is obviously very sensitive to mortgage rates. Softer sales in December reflected consumer search processes and contract signing activity in previous months when mortgage rates were higher than today. Now, with mortgage rates lower, some revival in home sales is expected going into spring.”
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.