Alabama Coastal Existing Home Sales Up in 1st Half!


Baldwin County MLS* Observations for the month of June 2009: Real Estate Statistics for the Baldwin County, Alabama Coastal Areas:

1st Half Total $ Sales Total Unit sales New Unit sales Used Unit sales
2008 429,001,613 1,745 293 1452
2009 370,761,488 1,666 187 1479
% difference -14% -5% -36% +2%

For the first half, unit sales for used homes was actually up!! Not a lot.

Sales in June improved by 6% to $83,399,350 from May’s $78,550,803 (see page A-2). We have now seen five months of increasing activity, a sign of a bottom. Since this pattern of increases is largely seasonal, it is certainly too early to declare a bottom, but there are signs. In particular, the 12 month moving average line of total dollar sales has “flattened” out and is no longer pointing straight down. Of the three areas we cover the coast is the only one to show this “flattening” of the downward curve.  The total number of active home listings has stopped climbing rapidly. New construction has slowed dramatically, and is no longer adding to the glut. There are still big risks ahead; but, there is also the possibility that things won’t be getting a lot worse from here.

Daphne/Montrose area and Orange beach have been showing nice increases in unit sales. There were some sales in the upper ranges for Used homes indicating that there are some bargain hunters in the market. But this is far better that the bottomless drop which has been the case for a while. On a unit basis, sales of all houses dropped by 1% to 342 vs. 347 last month. Used house unit sales were flat, 309 vs. 304 last month. New house unit sales decreased to 33 from 43 last month (Sect A P. 18).

New listings for new houses increased to 74 in June a much higher than the 39 in May. Used houses New listings decreased to 810 this month from 829 in May. Sellers are frustrated and are possibly relisting their homes with new agents since net Active listings were down and are trending down for both new and used houses. (See below).

Interestingly, and encouraging, the absolute number of Used Active homes on the market has generally declined since peaking at 6,284 in June 2007. In June, there were 5,133 used homes. The new house market which peaked out in September 2006 at 2,144 active, now sits at 473. There were 5,606 Used Active houses in June, a 6% decrease from 5,951 in May.

The Absorption rate for new houses was 10 months of inventory for June vs. 10 in May.  The Absorption rate for used houses was 22 months of inventory for June vs. 24 in May. (See Section A Page 17).

Average sales price for new units increased to $259,934 from $202,914 last month. Life is still very difficult for those trying to sell higher priced homes, and inventory continues to climb. See the tables for details. (See Page A-14). The average used house price increased to $242,141 from $229,689 in May.

TWB 7/11/2009

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2 thoughts on “Alabama Coastal Existing Home Sales Up in 1st Half!

  1. Ann Arbor guy

    Wow,

    22 months seems like an awful lot of used home inventory.

    In our market we expect that about 5 months is a balanced market. With 22 months in a given market segment I would expect prices to fall for a while longer.

    Reply

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