Baldwin County & Alabama Coastal MLS*: Observations for the Month of August 2012
Sales dollars decreased 6% in August to $96,478,343 from July’s $102,213,294. This is 8% above August last year at $89,229,253. This is still a healthy result. (Sect A p.2). The 12 month moving average line of sales is continuing to point up. Inventories are continuing to come down.
On a unit basis, sales of all houses was unchanged at 407 this month vs. last month, which is 3% down from last year’s 421. The year to year comparison remains healthy. At the high end, the increase in over $900,000 sales continues, with 20 sales this month vs.14 last month.
Used Home sales declined 2% to 371 this month vs. 378 last month, which is down 5% from last year’s 392 (Sect A p.18). Sales in the under $200,000 range that we noted over the last several months accounted for 227 for August, accounted for 61% of all sales. New Home sales were 36 this month vs 29 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 decreased to 72 from 79 in July. Used homes New listings decreased to 567 from 612 in July 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 August, there were 3,349 Active Used homes, a reduction from 3,796 in July. The New home market, which peaked in August 2006 at 2,144 Active, now sits at 287.
The Absorption rate for New homes was 9 months of inventory for August vs. 9 in July. The Absorption rate for Used homes was 10 months of inventory for August vs. 11 in July. Over the last four years the drop in months of inventory for Used homes has been steady and impressive from 25 months plus in August 2008 to 10 months this August.
Average sales price for all homes has been stable for the past year. For New units, prices decreased to $191,414 from $221,523 last month. (Sect A p.14). Average Used home prices decreased to $241,476 from $253,410 in July.
Average Days On Market for New Sold properties in August was 164 this month vs. 203 last month. This indicates that older inventory is selling, which is a good sign. Days On Market for Used was 181 this month vs. 165 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.
By: Tom Brander 9/16/2012