Mobile-area Median Home Sales Price up 8.3% YTD
The number of homes sold in Mobile during September increased slightly from the same month last year and was 5.4% above the five-year average. (file)
Sales: According to the Mobile Area Association of Realtors, Mobile-area residential sales totaled 385 units during September, up 0.5% from 383 sales in the same month a year earlier. Sales were down 20% compared to 481 sales in August. Results were 5.4% above the five-year September average of 365 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 September were 1,402 units, a decrease of 12.4% from September 2018’s 1,600 units and an increase of 0.7% from August 2019’s 1,392 units. Mobile also experienced a year-over-year decline in months of supply. September’s months of supply totaled 3.6 months, a decrease of 12.8% from September 2018’s 4.2 months. September’s months of supply increased 25.8% from last month.
Pricing: The Mobile median sales price in September was $157,000, an increase of 8.3% from one year ago and an increase of 1.4% from the prior month. This direction is consistent with historical data (2014-18) indicating that the September median sales price on average increases from August by 4.5%. 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 September was 56 days, a decrease of 9.7% from 62 days in September 2018 and a decrease of 11.1% from 63 days in August.
Forecast: September sales were five units, or 1.3%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 380 sales for the month, while actual sales were 385 units. ACRE projected 3,540 sales in the area year-to-date, while 3,721 units were actually sold through September.
ACRE’s statewide perspective: Residential sales growth continued in September as total residential sales increased 8.7% year-over-year from 5,069 to 5,510 closed transactions. Year-to-date, sales are up 4.3% from 2018, a record year for residential sales. Home price appreciation in the state continued to climb as the median sales price in September increased 7% year-over-year, marking 23 consecutive months of gains. The statewide median sales price is up 4.3% year-to-date. While nationwide inventory levels (active listings) decreased 2.7% year-over-year, Alabama’s residential listings continue to tighten, decreasing 9.7% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and continued into the third quarter of 2019. With low inventory levels, it is not surprising to see homes selling at a slightly quicker pace than one year ago. Homes selling in Alabama during September spent an average of 82 days on the market, a decrease of eight days from September 2018.
NAR’s national perspective: Existing home sales rebounded in September, increasing 7.4% year-over-year from approximately 421,000 closed transactions one year ago to 452,000 currently. The nationwide median existing-home price increased 5.9% in September, marking 91 consecutive months of year-over-year gains. John Smamby, president of the National Association of Realtors, said, “For families on the sidelines thinking about buying a home, current rates are making the climate extremely favorable in markets across the country. These traditionally low rates make it that much easier to qualify for a mortgage, and they also open up various housing selections to buyers everywhere.”
Source: Alabama Center of Real Estate