Sales: According to the Mobile Area Association of Realtors, Mobile-area residential sales totaled 423 units during April, down 4.7 percent from 444 sales in the same month a year earlier. Sales were up 0.7 percent compared to 420 sales in March. Results were 7.5 percent above the five-year April average of 393 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 April were 1,447 units, a decrease of 6.5 percent from April 2018’s 1,548 units and an increase of 5.8 percent from March 2019’s 1,368 units. Mobile also experienced a year-over-year decline in months of supply. April months of supply totaled 3.4 months, a decrease of 1.9 percent from April 2018’s 3.5 months. April’s months of supply was equivalent to March’s 3.4 months of supply.
Pricing: The Mobile median sales price in April was $151,900, an increase of 2.5 percent from one year ago and an increase of 2 percent from the prior month. This direction is consistent with historical data (2014-18) indicating that the April median sales price on average increases from March by 4.1 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 April was 57 days, a decrease of 26.9 percent from 78 days in April 2018 and a decrease of 14.9 percent from 67 days in March.
Forecast: March sales were 16 units, or 3.9 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 407 sales for the month, while actual sales were 423 units. ACRE projected 1,424 sales in the area year-to-date, while 1,419 units were actually sold through April.
ACRE’s statewide perspective: While nationwide residential sales dropped 1 percent in April, demand for housing in Alabama remained strong. Statewide residential sales increased 4.4 percent from 5,574 closed transactions in April 2018 to 5,820 in April 2019. Year-to-date, sales increased 3.8 percent from 2018. Home price appreciation in the state continued to climb as the median sales price in April increased 3.2 percent year-over-year from $155,250 to $160,283. The statewide median sales price is also up 3.2 percent year-to-date. Although nationwide inventory levels are trending upward, Alabama’s residential listings decreased 10.7 percent from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and in the spring buying season 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 April spent an average of 93 days on the market, an improvement of three days from April 2018.
NAR’s national perspective: During April, total existing-home sales nationwide declined 1.1 percent from approximately 460,000 closed transactions one year ago to 455,000 currently. The nationwide median existing-home price increased 3.6 percent in April, marking 86 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “First, we are seeing historically low mortgage rates combined with a pent-up demand to buy, so buyers will look to take advantage of these conditions. Also, job creation is improving, causing wage growth to align with home price growth, which helps affordability and will help spur more home 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.