Baldwin County & Alabama Coastal MLS*: Observations for the Month of July 2012
Sales Dollars decreased 10% in July to $101,434,369 from June’s $112,612,607. This is 30% above July last year at $77,984,985. 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 14% to 402 this month vs. 469 last month, which is 4% up from last year’s 387. 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 14 this month vs.19 last month.
Used Home sales declined 12% to 374 this month vs. 426 last month, which is up 4% from last year’s 358 (Sect A p.18). Sales in the under $200,000 range that we noted over the last several months, tailed off somewhat with 214 for July, accounting for 57% of all sales. New Home sales were 28 this month vs 43 last month which compares favorably with 29 last year. Increasing sales of new homes is indicative of a recovering market.
New listings for New homes increased to 71 from 60 in June. Used houses New listings decreased to 374 from 426 in June 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 July, there were 3,406 Active Used homes, a reduction from 3,825 in June. The New home market, which peaked in July 2006 at 2,144 Active, now sits at 272.
The Absorption rate for New homes was 8 months of inventory for July vs. 9 in June. The Absorption rate for Used homes was 10 months of inventory for July vs. 11 in June. Over the last four years the drop in months of inventory for Used homes has been steady and impressive from 25 months plus in July 2008 to 10 months this July.
Average sales price for all homes has been stable for the past year. For New units, prices increased to $222,471 from $211,268 last month. (Sect A p.14). Average Used home prices increased to $254,559 from $243,024 in June.
Average Days On Market for New Sold properties in July was 203 this month vs. 260 last month. This indicates that older inventory is selling, which is a good sign. Days On Market for Used was 165 this month vs. 173 last month.
We see 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.