Baldwin County & Alabama Coastal MLS*: Observations for the Month of October 2011
Dollar sales this month decreased 11% to $68,050,461 from September’s $76,595744. This is 19% above October last year at $57,221,979 when sales were impacted by the oil spill and the tax credit expiration (Sect A p.2). The 12 month moving average line of sales is quite clearly on an upwards tilt as mentioned last month.
On a 9 month basis, only 2004 and 2005 exceeded this years’ unit volume. While inventories are high, unit sales have recovered to normal levels. Inventories in fact have declined quite dramatically. Dollar sales still lag reflecting fewer high end sales and lower prices. This situation is also reversing, with more high end homes selling. Still, given the inventory level, it is unlikely that prices will increase for a while.
On a unit basis, sales of all houses declined 9% to 335 this month vs. 370 last month, which is 17% up from last year’s 287.
Used Home sales declined 15% to 335 this month vs. 370 last month, which is up 17% from last year’s 287 (Sect A p.18). New Home sales were 28 this month vs 33 last month. Low sales of New homes reflects intense competition from existing, and the shutdown of new construction.
New listings for New homes increased to 59 from 45 in September. Used houses New listings increased to 559 from 549 in September with net inventory still down.
The absolute number of Used Active homes on the market, which had a slight peak mid-summer of ‘09, has once again been improving. In October, there were 3,795 Active Used homes, a reduction from 4,253 in September. The New home market, which peaked in October 2006 at 2,144 Active, now sits at 343.
The Absorption rate for New homes was 13 months of inventory for October vs. 14 in September. The Absorption rate for Used homes was 11 months of inventory for October vs. 13 in September. Over the last four years the drop in months of inventory for Used homes has been steady and impressive from 25 months plus in October 2008 to 11 months this October.
Average sales price for all homes has been stable for the past year. For New units, prices decreased to $177,908 from $179,069 last month. (Sect A p.14). Average Used home prices decreased to $205,437 from $209,752 in September.
Average Days On Market for New Sold properties in October was 291 this month vs. 188 last month. Days On Market for Used was 182 this month vs. 167 last month.