Median home sales price up 4% in Mobile area from one year ago

Median home sales price up 4% in Mobile area from one year ago
The number of Mobile-area homes sold in May increased slightly from one year ago and was 18% above the five-year May average. (file)

Sales: According to the Mobile Area Association of Realtors, Mobile-area residential sales totaled 484 units during May, up 0.4% from 482 sales in the same month a year earlier. Sales were up 14.4% compared to 423 sales in April. Results were 18% above the five-year May average of 410 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 May were 1,471 units, a decrease of 3.5% from May 2018’s 1,524 units and an increase of 1.7% from April 2019’s 1,447 units. Mobile also experienced a year-over-year decline in months of supply. May months of supply totaled 3 months, a decrease of 3.9% from May 2018’s 3.2 months. May’s months of supply was down 12% from April’s 3.4 months of supply.

Pricing: The Mobile median sales price in May was $155,000, an increase of 3.9% from one year ago and an increase of 2% from the prior month. This direction is inconsistent with historical data (2014-18) indicating that the May median sales price on average decreases from April by 0.8%. 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 May was 55 days, a decrease of 22.5% from 71 days in May 2018 and a decrease of 3.5% from 57 days in April.

Forecast: May sales were 43 units, or 9.8%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 441 sales for the month, while actual sales were 484 units. ACRE projected 1,865 sales in the area year-to-date, while 1,903 units were actually sold through May.

ACRE’s statewide perspective: Statewide residential sales increased slightly in May, extending the streak to five consecutive months of year-over-year sales gains. Statewide residential sales increased 1.4% from 6,306 closed transactions in May 2018 to 6,392 in May 2019. Year-to-date, sales are up 3.2% from 2018. Home price appreciation in the state continued to climb as the median sales price in May increased 4.3% year-over-year from $165,688 to $172,864. The statewide median sales price is also up 3.4% year-to-date. Although nationwide inventory levels are trending upward, Alabama’s residential listings decreased 11.6% 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 May spent an average of 88 days on the market, an improvement of 12 days from May 2018.

NAR’s national perspective: Existing home sales rebounded in May, posting their first year-over-year gain since August 2018. Nationwide sales increased 0.9% from approximately 535,000 closed transactions one year ago to 540,000 currently. The nationwide median existing-home price increased 4.8% in May, marking 87 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “The purchasing power to buy a home has been bolstered by falling mortgage rates, and buyers are responding.”

 

 

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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