Baldwin County & Alabama Coastal MLS*: Observations for the Month of July 2014
Sales dollars declined 27% in July to $107,815,755 from June of $148,329,630. This is 14% off July last year at $125,659,355. (Sect A p.2). The 12 month moving average line of sales had continued to point up steadily for three years has can best be described as “squiggly.” I would characterize the market activity as “unusual.” Inventories continue trending down.
In concert with ACRE, The Alabama Center for Real Estate, we did projections for 2014 full year sales. We used the ACRE provided data for the projections, which differs slightly from the data in this report. We projected unit sales for Baldwin county increasing by 47.7% over 2013 levels. We have examined our methodology and removed 65 sales from the last quarter of 2013 which were caused by a major condo project closing. This reduces the expected 2014 gain to 32% over 2013 and the projected condo increase of 8% over 2013 As of June, the cumulative year over year change in units is up 7%, far short of the adjusted forecast. The condo actuals are cumulatively about 4% below the forecast.
On a unit basis, sales of all houses were up 3% at 472 this month vs. last month at 590, which is up 17% from last year’s 502. There is still substantial inventory available to satisfy demand.
Used Home sales declined 16% to 431 this month vs. 512 last month, which is off 6% from last year’s 459 (Sect A p.18). New Home sales were 41 this month vs 78 last month and compared with 43 last year.
New listings for New homes increased to 129 from 108 in June. Used homes New listings decreased to 719 from 787 in June 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 July, there were 3,739 Active Used homes, a reduction from 4,220 in June. The New home market, which peaked in July 2006 at 2,144 Active, now sits at 442.
The Absorption rate for New homes was 7 months of inventory in July vs. 7 in June. The Absorption rate for Used homes was 9 months of inventory for July vs. 10 in June. Over the last four years the drop in months of inventory for Used homes has been steady and impressive from 25 months plus in July 2008 to 9 months this July. The inventory of homes in the higher price ranges remains high, homes over $400,000 have over a years supply.
Average sales price for all homes has been improving modestly for the past year. For New units, prices increased to $263,042 from $246,896 last month. (Sect A p.14). Average Used home prices decreased to $225,130 from $252,093 in June. The price trend is up for the year. Average Days On Market for New Sold properties in July was 202 this month vs. 203 last month. Days On Market for Used was 148 this month vs. 144 last month. Hopefully this month is not a harbinger of a slow fall sales season.