Baldwin County & Alabama Coastal MLS*: Observations for the Month of June 2012
Sales Dollars decreased 10% in June to $109,690,517 from May’s $121,491,885. This is 29% above June last year at $85,099,513. This is still a healthy result. (Sect A p.2). The 12 month moving average line of sales is drifting up once again. Inventories are continuing to come down.
On a unit basis, sales of all houses declined 8% to 463 this month vs. 506 last month, which is 14% up from last year’s 407. This month’s sales reduction is a bit concerning but still the year to year comparison remains very healthy. The high end increase in over $900,000 sales continues, but at a slightly slower pace to 19 this month vs. 29 last month.
Used Home sales declined 8% to 421 this month vs. 459 last month, which is up 9% from last year’s 385 (Sect A p.18). The increase in sales in the under $200,000 range that we noted over the last several months, tailed off somewhat with 251 for June, accounting for 60% of all sales. New Home sales were 42 this month vs 47 last month which compares favorably with 22 last year. Increasing sales of new homes is very indicative of a recovering market.
New listings for New homes increased to 59 from 35 in May. Used houses New listings increased to 459 from 421 in May 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 June, there were 3,445 Active Used homes, a reduction from 3,997 in May. The New home market, which peaked in June 2006 at 2,144 Active, now sits at 252.
The Absorption rate for New homes was 8 months of inventory for June vs. 10 in May. The Absorption rate for Used homes was 10 months of inventory for June vs. 12 in May. Over the last four years the drop in months of inventory for Used homes has been steady and impressive from 25 months plus in June 2008 to 10 months this June.
Average sales price for all homes has been stable for the past year. For New units, prices increased to $212,070 from $192,155 last month. (Sect A p.14). Average Used home prices decreased to $239,391 from $245,012 in May.
Average Days On Market for New Sold properties in June was 260 this month vs. 231 last month. This indicates that older inventory is selling, which is a good sign. Days On Market for Used was 173 this month vs. 179 last month.
We are seeing a pick-up in both Birmingham and Huntsville residential sales. We now see that it is translating to strength in the second home market, which is needed for the coastal area to gain strength. I think the situation on the coast has turned quite positive.