Baldwin County & Alabama Coastal MLS*: Observations for the Month of May 2013
Sales dollars climbed 19% in May to $131,734,194 from April’s $110,343,519. This is a healthy 8% above May last year at $122,483,885. (Sect A p.2). This is the third highest May total after 2004 and 2005.This continues the great start to the main spring/summer selling season. The 12 month moving average line of sales has continued to point up steadily for two years now. Inventories are trending down.
On a unit basis, sales of all houses were up 15% at 568 this month vs. last month at 493, which is up 11% from last year’s 511. In spite of the substantially improved sales climate, it is important to point out that the inventories of homes over $300,000 remains at over a 12 month supply.
Used Home sales improved 12% to 511 this month vs. 456 last month, which is up 10% from last year’s 463 (Sect A p.18). New Home sales were 57 this month vs 37 last month compared with 48 last year. Increasing sales of New Homes is indicative of a recovering market.
New listings for New homes increased to 63 from 61 in April. Used homes New listings increased to 511 from 456 in April 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 May, there were 3,439 Active Used homes, a reduction from 3,994 in April. The New home market, which peaked in May 2006 at 2,144 Active, now sits at 322.
The Absorption rate for New homes was 9 months of inventory for May vs. 10 in April. The Absorption rate for Used homes was 9 months of inventory for May vs. 11 in April. Over the last four years the drop in months of inventory for Used homes has been steady and impressive from 25 months plus in May 2008 to 9 months this May. As I observe above though, the inventory for higher priced homes remains high.
Average sales price for all homes have been improving modestly for the past year. For New units, prices decreased to $222,465 from $245,923 last month. (Sect A p.14). Average Used home prices increased to $232,982 from $222,027 in April. The price trend is up for the year.
Average Days On Market for New Sold properties in May was 201 this month vs. 156 last month. Days On Market for Used was 168 this month vs. 166 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 particularly in the upper price ranges, sales are continuing to improve, I think the situation on the coast has turned quite positive.