Mobile-area homes sell much faster in February compared to one year ago

Mobile-area homes sell much faster in February compared to one year ago
The Mobile median home sales price in February was $143,500. (iStock)

Sales: According to the Mobile Area Association of Realtors, Mobile-area residential sales totaled 343 units during February, up 12.1 percent from 306 sales in the same month a year earlier. Sales were up 47.2 percent compared to 233 sales in January. Results were 24.5 percent above the five-year February average of 276 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 February were 1,352 units, a decrease of 14.6 percent from February 2018’s 1,583 units and a decrease of 3 percent from January 2019’s 1,394 units. Mobile also experienced a year-over-year decline in months of supply. February months of supply totaled 3.9 months, a decrease of 23.8 percent from February 2018’s 5.2 months. February’s months of supply decreased 34.1 percent from January’s 6 months.

Pricing: The Mobile median sales price in February was $143,500, a decrease of 1 percent from one year ago and also a decrease of 1 percent from the prior month. This direction is inconsistent with historical data (2014-18) indicating that the February median sales price on average increases from January by 9.7 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 February was 70 days, a decrease of 30 percent from 100 days in February 2018 and a decrease of 1.4 percent from 71 days in January.

Forecast: February sales were 27 units, or 8.5 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 316 sales for the month, while actual sales were 343 units. ACRE projected 599 sales in the area year-to-date, while 576 units were actually sold through February.

ACRE’s statewide perspective: Statewide residential sales in February increased 10.9 percent year-over-year from 3,807 to 4,222 closed transactions. Year-to-date sales increased 6.4 percent from 2018. Home price appreciation in the state continued to climb, but at a slower pace, as the median sales price in February increased 3 percent year-over-year from $152,771 to $157,319. The statewide median sales price is also up 4.2 percent year-to-date. Although nationwide inventory levels are trending upward, Alabama’s residential listings decreased 8.9 percent from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and in the early months of 2019. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during February spent an average of 99 days on the market, an improvement of 27 days from February 2018.

NAR’s national perspective: During February, total existing-home sales nationwide declined 2.2 percent from approximately 319,000 closed transactions one year ago to 312,000 currently. The nationwide median existing-home price increased 3.6 percent in February, marking 84 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “It is very welcoming to see more inventory showing up in the market. For sustained growth, significant construction of moderately priced homes is still needed. More construction will help boost local economies and more home sales will help lessen wealth inequality as more households can enjoy in housing wealth gains.”

 

 

 

 

 

 

 

 

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.

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