Sales: According to the Mobile Area Association of REALTORS, November home sales in the area increased 25.6% year-over-year (Y/Y) from 332 to 417 closed transactions. Following seasonal trends, sales decreased 17.8% from October. Home sales in the area are now up 12.8% year-to-date. Two more resources to review: Quarterly Report and Annual Report.

For all Mobile-area housing data, click here.

Inventory: Homes listed for sale decreased 55.5% from 1,313 listings one year ago to 585 in November. Months of supply dropped from 4 months to 1.4, reflecting a market where sellers generally have elevated bargaining power.

Pricing: The median sales price in November was $180,300, an increase of 13.1% from one year ago and an increase of 2.4% from October. 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.

Homes sold in November averaged 38 days on the market (DOM), selling 18 days faster than in November 2019.

Forecast: November sales were 61 units, or 17.1%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 356 sales for the month, while actual sales were 417 units. ACRE forecast a total of 4,551 residential sales year-to-date, while there were 5,019 actual sales through November, a difference of 10.3%.

New construction: The 37 new homes sold represent 8.9% of all residential sales in the area in November. Total sales increased 37% year-over-year. The median sales price in November was $268,900, an increase of 21.2% from one year ago and an increase of 0.4% from October.

NAR commentary: According to the National Association of Realtors (NAR), existing home sales nationwide decreased 2.5% from October (seasonally adjusted annual rate), ending five consecutive months of gains. However, sales did increase significantly from one year ago, rising 25.8%. Sales prices continued to grow at higher rates than before the pandemic, rising almost 15% year-over-year.

Lawrence Yun, chief economist for NAR, said, “Home sales in November took a marginal step back, but sales for all of 2020 are already on pace to surpass last year’s levels. Given the COVID-19 pandemic, it’s amazing that the housing sector is outperforming expectations. Circumstances are far from being back to the pre-pandemic normal. However, the latest stimulus package and with the vaccine distribution underway, and a very strong demand for home ownership still prevalent, robust growth is forthcoming for 2021.”

ACRE commentary: Home sales in Alabama increased for the sixth consecutive month in November, rising 23.3% year-over-year. The strong rebound in sales activity during the summer months has extended into the fall, with many buyers looking for more housing space due to more time spent at home. Low mortgage rates also played a significant role as they helped offset rising home sales prices, which increased almost 15% Y/Y in November. Sales prices continue to grow at a faster rate than before the pandemic, which could motivate more potential sellers to list their homes going forward. Tight inventory has played a large role in driving sales prices upward, with total listings down 33.8% in November.

The Mobile Residential Monthly Report is developed in connection with the Mobile Area Association of Realtors to better serve area consumers.

Editor’s note: All information in this article reflects data provided to the Alabama Center for Real Estate for Nov. 1-30, 2020. Thus, the performance represented is historical and should not be used as an indicator of future results, particularly considering the impact of COVID-19 on the housing market.