Mobile-area home sales up sharply in January from one year ago

Mobile-area home sales up sharply in January from one year ago
The Mobile median home sales price in January was $151,900, an increase of 4.8% from the same month last year. (iStock)

Sales: According to the Mobile Area Association of Realtors, Mobile-area residential sales totaled 312 units during January, up 33.9% from 233 sales in the same month a year earlier. Following seasonal trends, sales were down 23.3% compared to 407 sales in December. Results were 22.3% above the five-year January average of 255 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 January were 1,194 units, a decrease of 14.3% from January 2019’s 1,394 units and a decrease of 1.6% from December 2019’s 1,213 units. Mobile also experienced a year-over-year decline in months of supply. January’s months of supply totaled 3.8 months, a decrease of 36.5% from January 2019’s 6 months. January’s months of supply increased 27.5% from December.

Pricing: The Mobile median sales price in January was $151,900, an increase of 4.8% from one year ago and a decrease of 7.4% from the prior month. This direction is consistent with historical data (2015-19) indicating that the January median sales price on average decreases from December by 0.7%. 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 January was 66 days, a decrease of 7% from 71 days in January 2019 and an increase of 13.8% from 58 days in December.

Forecast: January sales were 18 units, or 6%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 299 sales for the month, while actual sales were 317 units.

ACRE’s statewide perspective: Residential sales growth was especially strong in January as total residential sales increased 23.2% year-over-year from 3,347 to 4,122 closed transactions. Markets across the state have plenty of momentum as 2019 was a record year for residential sales in Alabama. Home price appreciation continued to climb as the median sales price in January increased 11.8% year-over-year, marking 27 consecutive months of gains. While properties listed for sale nationwide decreased 10.7% year-over-year, Alabama’s residential listings continued to tighten, decreasing 17% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2019 and continued into January. With low inventory levels, it is not surprising to see homes selling at a slightly quicker pace. Homes selling in Alabama during January spent an average of 92 days on the market, a decrease of 15 days from January 2019.

NAR’s national perspective: Existing home sales increased significantly in January, rising 11.6% year-over-year from approximately 285,000 closed transactions one year ago to 318,000 currently. The nationwide median existing-home price increased 6.8% in January, marking 95 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “The trend line for housing starts is increasing and showing steady improvement, which should ultimately lead to more home sales. Mortgage rates have helped with affordability, but it is supply conditions that have driven price growth.” Properties listed for sale nationwide declined 10.7% in January from approximately 1.59 million listings one year ago to 1.42 million currently.

 

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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