Sales: According to the Mobile Area Association of Realtors, Mobile-area residential sales totaled 398 units during October, up 13.7% from 350 sales in the same month a year earlier. Sales were up 3.4% compared to 385 sales in September. Results were 18.9% above the five-year October average of 335 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 October were 1,346 units, a decrease of 12.4% from October 2018’s 1,536 units and a decrease of 4% from September 2019’s 1,402 units. Mobile also experienced a year-over-year decline in months of supply. October’s months of supply totaled 3.4 months, a decrease of 22.9% from October 2018’s 4.4 months. October’s months of supply decreased 7.1% from September.
Pricing: The Mobile median sales price in October was $149,000, an increase of 2.8% from one year ago and a decrease of 5.1% from the prior month. This direction is consistent with historical data (2014-18) indicating that the October median sales price on average decreases from September by 9.4%. 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 October was 52 days, a decrease of 13.3% from 60 days in October 2018 and a decrease of 7.1% from 56 days in September.
Forecast: October sales were 31 units, or 8.5%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 367 sales for the month, while actual sales were 398 units. ACRE projected 3,907 sales in the area year-to-date, while 4,119 units were actually sold through October.
ACRE’s statewide perspective: Residential sales growth continued in October as total residential sales increased 6.7% year-over-year from 4,883 to 5,211 closed transactions. Year-to-date, sales are up 4.5% from 2018, a record year for residential sales. Home price appreciation in the state continued to climb as the median sales price in October increased 10.1% year-over-year, marking 24 consecutive months of gains. The statewide median sales price is up 5.5% year-to-date. While properties listed for sale nationwide decreased 4.3% year-over-year, Alabama’s residential listings continued to tighten, decreasing 10.7% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and continued into the fourth 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 October spent an average of 88 days on the market, a decrease of eight days from October 2018.
NAR’s national perspective: Existing home sales rebounded in October, increasing 3.8% year-over-year from approximately 446,000 closed transactions one year ago to 463,000 currently. The nationwide median existing-home price increased 6.2% in October, marking 92 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “Historically-low interest rates, continuing job expansion and higher weekly earnings are undoubtedly contributing to these higher numbers. We will likely continue to see sales climb as long as potential buyers are presented with an adequate supply of inventory.”
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.