Baldwin County MLS* & Alabama Coastal Areas: Observations for the month of November 2010
November was a slow month with dollar sales declining 12% to $49,104,256 from October’s $56,075,979. This is 14% below November last year at $57,288,930 (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 substantial inventory reduction for five 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 early 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 fairly even at 259 vs. 278 last month, which is somewhat lower than last year’s 289.
Used house unit sales were down to 259 from 278 last month. New home unit sales improved to 23 from 20 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 increased to 35 in November from 24 in October, which is a bit worse than sales. Used houses New listings decreased to 499 this month from 524 in October.
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 November, there were 4,388 Active Used homes, a 9% reduction from 4,816 in October. The New home market which peaked in November 2006 at 2,144 Active, now sits at 368.
The Absorption rate for New homes was 12 months of inventory for November vs. 13 in October. The Absorption rate for Used homes was 16 months of inventory for November vs. 17 in October. (Sect A p.17).
Average sales price for all homes has been trending down. But the new home average spiked this month. Since there are so few new homes sold lately the average prices can be quite volatile. For New units prices increased to $231,623 from $187,083 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 $189,592 from $202,846 in October.
Average Days On Market for New Sold properties in November was 234 this month vs. 168 last month. Days On Market for Used was 191 this month vs. 149 last month.