Mobile Median Home Sales Price Up 5 Percent YTD
Sales: According to the Mobile Area Association of Realtors, Mobile-area residential sales totaled 338 units during November, down 2.9 percent from 348 sales in the same month a year earlier. November sales were down 3.4 percent compared to 350 sales in October. Results were 14.1 percent above the five-year November average of 296 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 November were 1,439 units, a decrease of 12.5 percent from November 2017’s 1,644 units and a decrease of 6.3 percent from October 2018’s 1,536 units. Mobile also experienced a year-over-year decline in months of supply. November months of supply totaled 4.3 months, a decrease of 9.9 percent from November 2017’s 4.7 months of supply. November’s months of supply also decreased from October’s 4.4 months of supply.
Pricing: The Mobile median sales price in November was $149,000, an increase of 5.2 percent from one year ago and an increase of 2.8 percent from the prior month. This direction is consistent with historical data (2013-17) indicating that the November median sales price on average increases from October by 8.8 percent. 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 November was 73 days, a decrease of 11 percent from 82 days in November 2017 and an increase of 21.7 percent from 60 days in October.
Forecast: November sales were four units, or 1.2 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 334 sales for the month, while actual sales were 338 units. ACRE forecast 4,261 residential sales in the Mobile area year-to-date, while there were 4,273 actual sales through November.
ACRE’s statewide perspective: While nationwide sales declined 4.5 percent during November, residential sales in Alabama continued to grow. Total residential sales in Alabama increased 6.9 percent year-over-year from 4,311 to 4,606 closed transactions. Year-to-date through November, statewide residential sales are up 7 percent from 53,056 one year ago to 56,769 currently. Home price appreciation in the state continued to climb as the median sales price in November increased 3.2 percent year-over-year from $151,667 to $156,587. The year-to-date median sales price is up 4.7 percent from 2017. Although nationwide inventory levels increased 4.2 percent in November, Alabama’s residential inventory decreased 8.8 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices throughout 2018. With low inventory, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during November spent an average of 93 days on the market, an improvement of 24 days from 2017.
NAR’s national perspective: During November, nationwide inventory for existing homes increased 4.2 percent year-over-year from 1.67 million to 1.74 million residential listings. According to Lawrence Yun, chief economist for the National Association of Realtors, “the market conditions in November were mixed, with good signs of stabilizing home sales compared to recent months, though down significantly from one year ago. Rising inventory is clearly taming home price appreciation.”
Source: Alabama Center for Real Estate