Sales: According to the Mobile Area Association of Realtors, Mobile-area residential sales totaled 465 units during June, down 2.3% from 476 sales in the same month a year earlier. Sales were down 3.9% compared to 484 sales in May. Results were 7.5% above the five-year June average of 433 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 June were 1,389 units, a decrease of 9.1% from June 2018’s 1,528 units and a decrease of 5.6% from May 2019’s 1,471 units. Mobile also experienced a year-over-year decline in months of supply. June months of supply totaled 3 months, a decrease of 6.9% from June 2018’s 3.2 months. June’s months of supply remained unchanged from last month.
Pricing: The Mobile median sales price in June was $159,000, an increase of 12.4% from one year ago and an increase of 2.6% from the prior month. This direction is consistent with historical data (2014-18) indicating that the June median sales price on average increases from May by 4.2%. 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 June was 57 days, a decrease of 14.9% from 67 days in June 2018 and an increase of 3.6% from 55 days in May.
Forecast: June sales were 13 units, or 2.9%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 452 sales for the month, while actual sales were 465 units. ACRE projected 2,317 sales in the area year-to-date, while 2,368 units were actually sold through June.
ACRE’s statewide perspective: Statewide residential sales decreased slightly in June, ending a five-month streak of year-over-year sales gains. This was the first such decline since December 2018 and only the fourth in the last two years. Statewide residential sales decreased 3.4% from 6,277 closed transactions in June 2018 to 6,063 in June 2019. Year-to-date, however, sales are up 1.8% from 2018, a record year for residential sales. Home price appreciation in the state continued to climb as the median sales price in June increased 7.3% year-over-year from $164,987 to $177,018. The statewide median sales price is up 4.1% year-to-date. While nationwide inventory levels (active listings) are stabilizing (equal to June 2018), Alabama’s residential listings decreased 9.7% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and in the summer buying season of 2019. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during June spent an average of 86 days on the market, an improvement of 14 days from June 2018.
NAR’s national perspective: After a small gain in May, existing home sales weakened in June. Nationwide residential sales decreased 7.5% from approximately 570,000 closed transactions one year ago to 527,000 currently. The nationwide median existing-home price increased 4.4% in June, marking 88 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of REALTORS, said, “Home sales are running at a pace similar to 2015 levels – even with exceptionally low mortgage rates, a record number of jobs and a record high net worth in the country.” Yun said there is a housing shortage across the country and more inventory is needed, especially in the entry-level price range. “Imbalance persists for mid- to lower-priced homes with solid demand and insufficient supply, which is consequently pushing up home prices,” he said.
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.