Sales: According to the Mobile Area Association of Realtors, Mobile-area residential sales totaled 487 units during July, up 13.8% from 428 sales in the same month a year earlier. Sales were up 4.7% compared to 465 sales in June. Results were 17.7% above the five-year July average of 414 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 July were 1,405 units, a decrease of 10.7% from July 2018’s 1,573 units and an increase of 1.2% from June 2019’s 1,389 units. Mobile also experienced a year-over-year decline in months of supply. July’s months of supply totaled 3 months, a decrease of 21.5% from July 2018’s 3.7 months. July’s months of supply remained unchanged from last month.
Pricing: The Mobile median sales price in July was $160,000, an increase of 8% from one year ago and an increase of 0.6% from the prior month. This direction is inconsistent with historical data (2014-18) indicating that the July median sales price on average decreases from June by 4%. 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 July was 59 days, a decrease of 15.7% from 70 days in July 2018 and an increase of 3.5% from 57 days in June.
Forecast: July sales were 57 units, or 13.3%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 430 sales for the month, while actual sales were 487 units. ACRE projected 2,747 sales in the area year-to-date, while 2,855 units were actually sold through July.
ACRE’s statewide perspective: After a slight decline in June, statewide residential sales rebounded in July, increasing 10.2% from 5,722 closed transactions in July 2018 to 6,307 in July 2019. Year-to-date, sales are up 3.1% from 2018, a record year for residential sales. Home price appreciation in the state continued to climb as the median sales price in July increased 4.6% year-over-year from $169,178 to $176,926. The statewide median sales price is up 4.2% year-to-date. While nationwide inventory levels (active listings) decreased 1.6% year-over-year, Alabama’s residential listings continue to tighten, decreasing 9.9% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and in the summer buying season of 2019. With low inventory levels, it is surprising to see homes selling at a slightly slower pace than one year ago. Homes selling in Alabama during July spent an average of 89 days on the market, an increase of three days from July 2018.
NAR’s national perspective: After a 7.4% drop in June, existing home sales strengthened in July. Nationwide residential sales increased 3.3% from approximately 523,000 closed transactions one year ago to 540,000 currently. The nationwide median existing-home price increased 4.3% in July, marking 89 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “Falling mortgage rates are improving housing affordability and nudging buyers into the market.” However, he added that the supply of affordable housing is low across the nation. “The shortage of lower-priced homes has markedly pushed up home prices.”
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.