Alabama Coastal Real Estate Soars In December


Baldwin County & Alabama Coastal MLS*: Observations for the Month of December 2013

Sales dollars boomed 48% in December to $128,348,336 from November’s $86,977,943. This is 60% above December last year at $80,210,282. (Sect A p.2). This is an amazing showing for December and in the normally slower winter season. While a large chunk of the increase was due to 64 “new construction” unit sales for Phoenix West 11 (149 sales for the full year), re-sales were also substantially up. The 12 month moving average line of sales has continued to point up steadily for three years now. Inventories are trending down.

Baldwin Sales

Baldwin Sales

On a unit basis, sales of all houses were up 22% at 452 this month vs. last month at 369, which is up 25% from last year’s 363. 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 improved 17% to 340 this month vs. 306 last month, which is up 2% from last year’s 324 (Sect A p.18). New Home sales were 112 this month vs 63 last month compared with 39 last year. Increasing year over year sales of New Homes is indicative of a recovering market.

New listings for New homes increased to 103 from 83 in November. Used homes New listings decreased to 408 from 503 in November 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 December, there were 3,183 Active Used homes, a reduction from 3,736 in November. The New home market, which peaked in December 2006 at 2,144 Active, now sits at 369.

The Absorption rate for New homes was 8 months of inventory for December vs. 9 in November. The Absorption rate for Used homes was 7 months of inventory for December vs. 9 in November. Over the last four years the drop in months of inventory for Used homes has been steady and impressive from 25 months plus in December 2008 to 7 months this December. As I observe above though, the inventory of homes in higher price ranges remains high.

Average sales price for all homes has been improving modestly for the past year. For New units, prices increased to  $457,298 from $307,808 last month. (Sect A p.14). Average Used home prices increased to $226,856 from $220,869 in November. The price trend is up for the year. Average Days On Market for New Sold properties in December was 110 this month vs. 172 last month. Days On Market for Used was 162 this month vs. 165 last month.

For the year:

Total $

%chg

All Units

%chg

New Units

%chg

Used units

%chg

2012

1,034,396,986

4,602

437

4,165

2013

1,274,666,423

23%

5,464

19%

678

55%

4,786

15%

TWB 1/11/2014

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