Sales: According to the Baldwin County Association of Realtors/Multiple Listing Service, Baldwin County residential sales totaled 681 units during August, up 0.7% from 676 sales in the same month a year earlier. August sales were up 4.9% compared to 649 sales in July. Results were 23.2% above the five-year August average of 553 sales. Two more resources to review: Quarterly Report and Annual Report.
For all of Baldwin County’s housing data, click here.
Inventory: Total homes listed for sale in the Baldwin County area during August were 2,879 units, an increase of 0.9% from August 2018’s 2,853 units and an increase of 0.1% from July 2019’s 2,875 units. August’s months of supply totaled 4.2 months, up 0.2% from August 2018’s months of supply. August’s months of supply decreased 4.6% when compared to July 2019’s 4.4 months of supply. August’s months of supply was 26.8% lower than the five-year average of 5.8 months of supply.
Pricing: The Baldwin County median sales price in August was $245,000, a decrease of 0.4% from one year ago and a decrease of 2% from the prior month. This direction is inconsistent with historical data (2014-18) indicating that the August median sales price on average increases from July by 4.8%. 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 August was 81 days, down 12.9% from 93 days one year ago, and down 10% from 90 days in July 2019.
Forecast: August sales were 13 units, or 2%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 668 sales for the month, while actual sales were 681 units. ACRE forecast 4,915 residential sales in the Baldwin County area year-to-date, while there were 4,851 actual sales through August.
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 Baldwin County Residential Monthly Report is developed in conjunction with the Baldwin County Association of Realtors to better serve Gulf Coast consumers.