Baldwin County & Alabama Coastal MLS*: Observations for the Month of November 2011
Dollar sales this month decreased 18% to $57,418,263 from October’s $69,628,961. This is 10% above November last year at $52,326,531 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. 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 starting to reverse, with more high end homes selling. Still, it is unlikely that prices will increase for a while.
On a unit basis, sales of all houses declined 7% to 315 this month vs. 339 last month, which is 15% up from last year’s 273.
Used Home sales declined 5% to 296 this month vs. 311 last month, which is up 19% from last year’s 249 (Sect A p.18). New Home sales were 19 this month vs 28 last month. Low sales of New homes reflects intense competition from existing, and the shutdown of new construction.
New listings for New homes decreased to 56 from 60 in October. Used houses New listings decreased to 499 from 565 in October with net inventory 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 November, there were 3,663 Active Used homes, a reduction from 4,018 in October. The New home market, which peaked in November 2006 at 2,144 Active, now sits at 342.
The Absorption rate for New homes was 13 months of inventory for November vs. 14 in October. The Absorption rate for Used homes was 11 months of inventory for November vs. 12 in October. Over the last four years the drop in months of inventory for Used homes has been steady and impressive from 25 months plus in November 2008 to 11 months this November.
Average sales price for all homes has been stable for the past year. For New units, prices increased to $219,064 from $177,908 last month. (Sect A p.14). Average Used home prices decreased to $179,919 from $207,870 in October.
Average Days On Market for New Sold properties in November was 174 this month vs. 291 last month. Days On Market for Used was 190 this month vs. 182 last month.