Baldwin County & Alabama Coastal MLS*: Observations for the Month of November 2012
Sales dollars decreased 22% in November to $72,269,421 from October’s $81,845,796. This is 23% above November last year at $58,976,063. (Sect A p.2). This is a solid performance in a normally seasonally slow month. 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 were down 9% to 324 this month vs. last month at 358, which is unchanged from last year’s 325. The year to year comparison remains reasonable. At the high end, the $900,000 and over sales were 7 this compared with 11 for the prior two month, compared with 4 last year.
Used Home sales declined 10% to 294 this month vs. 325 last month, which is down 4% from last year’s 306 (Sect A p.18). New Home sales were 30 this month vs 33 last month which compares favorably with 19 last year. Increasing sales of New Homes is indicative of a recovering market.
New listings for New homes remained about the same at 59 and 57 in October. Used homes New listings decreased to 496 from 667 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 3,283 Active Used homes, a reduction from 3,641 in October. The New home market, which peaked in November 2006 at 2,144 Active, now sits at 311.
The Absorption rate for New homes was 9 months of inventory for November vs. 9 in October. The Absorption rate for Used homes was 10 months of inventory for November vs. 11 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 9 months this November.
Average sales price for all homes has been stable for the past year. For New units, prices decreased to $234,678 from $247,980 last month. (Sect A p.14). Average Used home prices decreased to $221,868 from $226,654 in October.
Average Days On Market for New Sold properties in November was 136 this month vs. 216 last month. Days On Market for Used was 161 this month vs. 179 last month.
We see improvement 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.