October Slow Month For Real Estate on the Alabama Coast


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

October was a slow month with dollar sales declining 10% to $54,577,754 from September’s
$60,378,552. This is 7% below October last year at $58,633,681 (Sect A p.2). As a result, the 12 month moving average line of sales is once again trending down. The sales results varied widely by area with several coastal areas showing some improvement.

Our chart in Section A p.18 shows the historical trends for absolute units of inventory and months of inventory for New and Used units. This chart has been showing some inventory reduction for four months which is not so much from sales as people simply not putting properties on the market.

Inventories remain very high. However, the number of active listings is now at the lowest level since 2006, which is positive.

The 12 month moving average line of unit sales for Used homes had a pronounced upward slope
through six months ago. But with the spill, it now shows a downward trend due to the size and counter cyclical nature of the sales drop. On a unit basis, sales of all houses remained even at 273 vs. 275 last month, which is somewhat lower than last year’s 284.

Used house unit sales were up to 253 from 243 last month. New home unit sales declined to
20 from 32 last month (Sect A p.18). The low number of sales of new homes reflects the intense
competition from existing, and an extended slowdown of new construction.

New listings for New homes decreased to 24 in October from 39 in September, which is in line with sales. Used houses New listings decreased to 522 this month from 635 in September.
The absolute number of Used Active homes on the market, which had a slight peak mid-summer of ‘09, has once again started to decline slightly. In October, there were 4,536 Active Used homes, a 11% reduction from 5,075 in September. The New home market which peaked in October 2006 at 2,144 Active, now sits at 377.

The Absorption rate for New homes was 12 months of inventory for October vs. 13 in September.
The Absorption rate for Used homes was 16 months of inventory for October vs. 18 in September. (Sect A p.17).

Average sales price for all homes has been trending down. For New units prices decreased to
$187,083 from $210,403 last month. Life is still very difficult for those trying to sell higher priced homes, and inventory continues to climb. (Sect A p.14). Average Used home prices decreased to $200,993 from $220,764 in September.

Average Days On Market for New Sold properties in October was 168 this month vs. 231 last month. Days On Market for Used was 149 this month vs. 146 last month.

TWB 11/13/2010

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One thought on “October Slow Month For Real Estate on the Alabama Coast

  1. Cal Carter @ Orange Beach Condos

    Things did indeed slow down a bit in October. September was busier than expected by many following the May, June, July and August oil spill slump. We were in hopes we would continue to see increasing activity into the late part of the year. We are still in hopes November and December activity will surprise us as it did last year. Only time will tell. Thanks for the update Tom!

    Reply

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