April A Good Month for Coastal Real Estate Sales- What’s next?

Baldwin County MLS* Observations for the month of April 2010: Real Estate Statistics for the Baldwin County, Alabama Coastal Areas:

We extend our sincerest sympathies to all those in the coastal regions who are once again facing a crisis of unprecedented proportion with the impact from the oil spill. The impact and fear from this disaster will likely color next months’ report.

Sales in April improved modestly 4% but on top of last months’ 54% to $82,313,143 from March’s $78,940,428. This is 19% above last year in April $69,309,655 (Sect A p.2). As a result the 12 month moving average line of sales is turning up. The inventory of Used homes remains at a high level.  The last few months’ sales improvement included upper end home sales which has been a very encouraging sign.

  • Our chart in Section A p.19, shows the historical trends for absolute units of inventory and months of inventory for New and Used units. This chart shows that there is a pronounced drop in inventory levels, which while still high, has recently leveled out.

Daphne/Montrose area and Orange Beach continue to show positive unit sales.

Baldwin April Number of Homes Sold

Baldwin April Number of Homes Sold

The 12 month moving average line of unit sales for Used homes has a pronounced upward slope. This is far better that the bottomless drop which has been the case for a while. On a unit basis, sales of all houses improved to 407 vs. 388 last month. Used house unit sales were up at 369 vs. 356 last month. This is the highest number of used sales since 2005 (other than last month). New home unit sales improved to 38 from 32 last month (Sect A p.18). The low sales of new homes reflect the intense competition from existing, and an extended slowdown of new construction.

New listings for New homes increased substantially to 80 in April from 65 in March, more than 2 times the number of sales. Used houses New listings decreased to 872 this month from 1,005 in March.

The absolute number of Used Active homes on the market, which had a slight peak mid-summer, has once again started to level out, or even decline slightly. In April, there were 4,960 Active Used homes, a 7% reduction from 5,357 in March. The New home market which peaked in April 2006 at 2,144 Active, now sits at 414.

The Absorption rate for New homes was 12 months of inventory for April vs. 14 in March.  The Absorption rate for Used houses was 17 months of inventory for April vs. 19 in March. (Sect A p.17).

Average sales price for New units decreased to $188,537 from $212,826 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 (Sect A p.14). Average Used home prices increased to $203,655 from $202,612 in March.

Average Days On Market for Sold properties in April were 295 this month vs. 296 last month for New. Days On Market for used was 162 this month vs 157 last month. (Note that we corrected a calculation for Days On Market so that these numbers are not directly comparable to prior reports.)

TWB 5/9/2010


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