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Sales: According to the Mobile Area Association of Realtors, Mobile-area residential sales totaled 482 units during May, an increase of 32.1 percent from the same month in 2017, when there were 365 residential sales. Current results are 22.8 percent above the five-year monthly average of 393 closed transactions. Two more resources to review: Quarterly Report and Annual Report.
Forecast: May sales in the Mobile area were 41 units or 9.3 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 441 total sales during May, while there were 482 actual sales during the month. ACRE’s year-to-date forecast projected 1,877 sales in the area through May, while there were 1,856 actual year-to-date sales.
Supply: The Mobile-area housing inventory in May was 1,524 units, a decrease of 19.4 percent from May 2017. Inventory has declined 59.3 percent from the 10-year May peak of 3,749 units reached in 2010.
Demand: May sales increased 8.6 percent from April. Homes selling in the area during May averaged 71 days on the market, a decrease of 30 days from the days-on-market average from the same month in 2017. Homes sold 30 days faster than the five-year May average of 101 days on the market.
Seeking balance: The inventory of homes for sale divided by the current monthly sales volume equals the number of months of housing supply. Most real estate professionals consider the market to be in balance at approximately 6 months of housing supply. The Mobile area has 3.2 months of housing supply, down from 4.9 months during the same period in 2017. The five-year average for the month of May is 6.2 months of housing supply.
Pricing: The Mobile-area median sales price in May was $149,250, an increase of 12.6 percent from this time last year. The May median sales price increased .7 percent from the previous month. Median sales prices 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: In both Alabama and the United States, the spring home-buying season has been affected greatly by very low inventory levels. April residential listings decreased 10 percent in the state and decreased 6 percent nationwide from one year ago. Residential sales in Alabama, however, increased 16 percent from one year ago, which is impressive considering the 10 percent drop in inventory. Home price appreciation cooled off somewhat as the statewide median sales price increased 2 percent from one year ago, while it increased 7 percent during the first quarter of the year. Going forward, home sales prices are expected to continue their upward climb during the summer as inventory levels are likely to repeat the declines that were seen during the spring.