May home sales in Mobile up 12 percent over same period last year
It was a positive spring for Mobile home sales, with increases in both year-to-date and monthly sales figures. (File)
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Sales: According to the Gulf Coast Multiple Listing Service, Mobile-area residential sales totaled 432 units during May, an increase of 12.2 percent from the same period last year (47 units). Two more resources to review: Quarterly Report and Annual Report.
For all of Mobile’s area housing data, click here.
Year-to-date home sales rose 8.6 percent in Mobile during May compared to last year.
Forecast: May sales were eight units, or 1.9 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s year-to-date sales forecast through May projected 1,791 closed transactions, while the actual sales were 1,818 units, a favorable difference of 1.5 percent.
Supply: The Mobile-area housing inventory in May was 2,175 units, a decrease of 16.2 percent from May 2015. Inventory has now declined 39.5 percent from the May peak (3,594 units) reached in 2010. There was 4.6 months of housing supply in May 2016 (6 months represents a balanced market for this time of year) vs. 6.7 months of supply in May 2015, a favorable decline of 31.8 percent. The market continues to move toward equilibrium, where buyer and seller have equal bargaining power, which is encouraging news.
May inventory in the Mobile area also increased 4 percent from April. As seller confidence in the housing market continues to strengthen gradually, more listings for sale can be anticipated, including more home construction. This is important because the quality of inventory has become a market impediment, according to recent surveys.
Demand: May sales increased 1.2 percent from April. This direction is consistent with historical data, which indicate sales, on average (2011-15), increased from April by 10.4 percent.
Existing single-family home sales accounted for 91 percent of total sales, down from 89 percent in May 2015, while 6 percent were new home sales (down from 7 percent) and 2 percent were condo transactions (unchanged from May 2015).
Pricing: The Mobile-area median sale price in May was $132,250, down 0.6 percent from last May. The May median sale price decreased 2 percent when compared to April. This month-over-month direction contrasts with historical data (2011-15) indicating, on average, the May median sale prices increase from April by 2.5 percent. Pricing can fluctuate from month to month as the sample size of data is subject to seasonal buying patterns. ACRE highly recommends consulting with a local real estate professional to discuss prices, which can vary from neighborhood to neighborhood.
Industry perspective: “Continued home price appreciation has been squeezing housing affordability, driving a two-year downward trend in the share of consumers who think it’s a good time to buy a home,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “The current low mortgage rate environment has helped ease this pressure, and fewer than half of consumers expect rates to go up in the next year. While the May increase in income growth perceptions could provide further support to prospective home buyers as the spring/summer home-buying season gains momentum, the effect may be muted by May’s discouraging jobs report.” For the full report on home purchase sentiment, click here.
The Mobile Area Residential Monthly Report is developed in conjunction with the Mobile Area Association of Realtors to better serve Gulf Coast consumers.
