Baldwin County & Alabama Coastal MLS*: Observations for the Month of November 2013
Sales dollars declined 17% in November to $85,937,943 from October’s $103,691,836. This is 17% above November last year at $73,463,221. (Sect A p.2). This is a strong showing for November and in the slower winter season. The 12 month moving average line of sales has continued to point up steadily for three years now. Inventories are slowly trending down.
On a unit basis, sales of all houses were down 15% at 367 this month vs. last month at 432, which is up 11% from last year’s 330. In spite of the substantially improved sales climate, it is important to point out that the inventories of homes over $400,000 while improving from really bad levels, remain at over a 12 month supply.
Used Home sales declined 17% to 305 this month vs. 368 last month, which is up 2% from last year’s 300 (Sect A p.18). New Home sales were 62 this month vs 64 last month compared with 30 last year.
Increasing year over year sales of New Homes is indicative of a recovering market.
New listings for New homes decreased to 84 from 97 in October. Used homes New listings decreased to 501 from 596 in October with net inventory down.
The absolute number of Used Active homes on the market, which had a slight peak midsummer of ‘09, has once again been improving. In November, there were 3,446 Active Used homes, a reduction from 3,764 in October. The New home market, which peaked in November 2006 at 2,144 Active, now sits at 413.
The Absorption rate for New homes was 8 months of inventory for November vs. 9 in October. The Absorption rate for Used homes was 9 months of inventory for November vs. 9 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. As I observe above though, the inventory of homes remains high.
Average sales price for all homes have been improving modestly for the past year. For New units, prices decreased to $297,708 from $405,259 last month. (Sect A p.14). Average Used home prices increased to $221,246 from $211,292 in October. The price trend is up for the year.
Average Days On Market for New Sold properties in November was 172 this month vs. 117 last month. Days On Market for Used was 165 this month vs. 172 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. The situation on the coast remains quite positive.