Alabama Coastal Real Estate September Sales, Normal Seasonal Slow Down

Baldwin County & Alabama Coastal MLS*: Observations for the Month of September 2012

Sales dollars decreased 18% in September to $79,194,195 from August’s $96,833,343. This is 3% above September last year at $77,092,161. (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 declined 13% to 355 this month vs. last month at 408, which is 5% down from last year’s 373. The year to year comparison remains healthy.  At the high end, the increase in over $900,000 sales eased, with 11 sales this month vs. 20 last month.

Used Home sales declined 2% to 316 this month vs. 372 last month, which is down 5% from last year’s 340 (Sect A p.18). Sales in the under $200,000 range that we noted over the last several months accounted for 192 for September, accounted for 61% of all sales. New Home sales were 39 this month vs 36 last month which compares favorably with 33 last year. Increasing sales of New Homes is indicative of a recovering market.

New listings for New homes decreased to 58 from 80 in August. Used homes New listings decreased to 540 from 573 in August 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 September, there were 3,290 Active Used homes, a reduction from 3,692 in August. The New home market, which peaked in September 2006 at 2,144 Active, now sits at 282.

The Absorption rate for New homes was 8 months of inventory for September vs. 10 in August. The Absorption rate for Used homes was 10 months of inventory for September vs. 11 in August. Over the last four years the drop in months of inventory for Used homes has been steady and impressive from 25 months plus in September 2008 to 10 months this September.

Average sales price for all homes has been stable for the past year. For New units, prices decreased to $190,548 from $191,414 last month. (Sect A p.14). Average Used home prices decreased to $227,098 from $241,781 in August.

Average Days On Market for New Sold properties in September was 236 this month vs. 164 last month. This indicates that older inventory is selling, which is a good sign. Days On Market for Used was 172 this month vs. 181 last month.

We see strength in the second home market, which is needed for the coastal area to gain strength. While there is still a lot of inventory, I think the situation on the coast has turned quite positive.

TWB 10/13/2012



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