Tag Archives: Oil Spill

August Alabama Coastal Real Estate Sales Encouraging

Baldwin County & Alabama Coastal Areas MLS*: Observations for the Month of August 2011

Dollar sales this month increased 13% to $87,098,253 from July’s $77,284,985. This is 40% above August last year at $62,166,514 when sales were impacted by the oil spill and the tax credit expiration (Sect A p.2). The 12 month moving average line of sales is quite clearly on an upwards tilt.

The chart in Section A p.18 has been showing substantial inventory reduction for a year, but not so much from sales as people not listing properties. The reduction in Active listings will probably help the market somewhat. Inventories remain very high. Used inventory is now hovering about 4,000, a full 2,000 below August 2008, but the sales level has also shrunk dramatically. We did not see a normal inventory build-up during the summer. The number of Active listings continues to drop, which is positive (more below).

The 12 month moving average line of unit sales for Used homes had a pronounced upward slope through April 2010. But with the spill, it had been showing a slight downward trend. Now, for the last year, the line is trending up. On a unit basis, sales of all houses improved 2% to 416 this month vs. 406 last month, which is 15% up from last year’s 362.

In the under $100,000 price range there has been an unusual pick up in activity over the last six months going from 60-80 sales per month to 100-120 per month. It almost appears that some entity is buying up these lower priced properties? At the other end, 12 homes over $900,000 sold which is a nice increase.

Used Home sales improved up 9% to 388 this month vs. 373 last month, which is up 31% from last year’s 296 (Sect A p.18). New Home sales were 28 this month vs 28 last month. The low number of sales of New homes reflects the intense competition from existing, and a virtual shutdown of new construction.

New listings for New homes increased to 66 from 51 in July. Used houses New listings decreased to 675 from 697 in July with net inventory still 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 August, there were 4,010 Active Used homes, a reduction from 4,491 in July. The New home market, which peaked in August 2006 at 2,144 Active, now sits at 347.

The Absorption rate for New homes was 13 months of inventory for August vs. 13 in July. The Absorption rate for Used homes was 12 months of inventory for August vs. 14 in July. Over the last four years the drop in months of inventory for Used homes has been steady and impressive from 25 months plus in August 2008 to 12 months in August. (Sect A p.17).

Average sales price for all homes has been stable for the past year. For New units, prices increased to $298,172 from $203,440 last month. (Sect A p.14). Average Used home prices increased to $202,962 from $201,658 in July.

Average Days On Market for New Sold properties in August was 303 this month (I regard that as a good sign as old inventory is moving) vs. 177 last month. Days On Market for Used was 178 this month vs. 185 last month.

TWB 9/11/2011

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July Alabama Coast Real Estate Sales Steady

Baldwin County & Alabama Coastal Areas MLS*: Observations for the Month of July 2011

Dollar sales this month dropped 8% to $75,915,885 from June’s $82,835,113. This is 26% above July last year at $60,463,492 when sales were impacted by the oil spill and the tax credit expiration (Sect A p.2). The 12 month moving average line of sales is turning upwards.

The chart in Section A p.18 has been showing substantial inventory reduction for a year, but not so much from sales as people not listing properties. The reduction in Active listings will probably help the market somewhat. Inventories remain very high. Used inventory is now hovering about 4,000, a full 2,000 below August 2008, but the sales level has also shrunk dramatically. The number of Active listings continues to drop, which is positive (more below).

The 12 month moving average line of unit sales for Used homes had a pronounced upward slope through seven months ago. But with the spill, it had been showing a slight downward trend. Now once again, for the last several months, the line has begun to point up. On a unit basis, sales of all houses declined slightly, down 5% to 376 this month vs. 395 last month, which is 29% up from last year’s 292.

In the under $100,000 price range there has been an unusual pick up in activity over the last four months going from 60-80 sales per month to 100-110 per month. It almost appears that some entity is buying up these lower priced properties?

Used Home sales declined slightly, down 6% to 351 this month vs. 373 last month, which is up 31% from last year’s 267.(Sect A p.18). New Home sales were 25 this month vs 22 last month. The low number of sales of New homes reflects the intense competition from existing, and a virtual shutdown of new construction.

New listings for New homes increased to 51 from 42 in June. Used houses New listings decreased to 691 from 870 in June with net inventory still 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 4,116 Active Used homes, a reduction from 4,524 in June. The New home market, which peaked in July 2006 at 2,144 Active, now sits at 331.

The Absorption rate for New homes was 12 months of inventory for July vs. 13 in June. The Absorption rate for Used homes was 13 months of inventory for July vs. 15 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 13 months in July. (Sect A p.17).

Average sales price for all homes has been stable for the past year. For New units, prices decreased to $211,221 from $243,712 last month. (Sect A p.14). Average Used home prices decreased to $201,240 from $207,704 in June.

Average Days On Market for New Sold properties in July was 177 this month vs. 249 last month. Days On Market for Used was 185 this month vs. 170 last month.

TWB 8/13/2011

June Alabama Coastal Real Estate Sales Surprisingly Weak

Baldwin County & Alabama Coastal Areas MLS*: Observations for the Month of June 2011

This month dollar sales dropped a surprising 8% to $81,135,713 from May’s $88,113,093. This is 24% above June last year at $65,207,636 when sales were impacted by the oil spill(Sect A p.2). The 12 month moving average line of sales is turning upwards.

The chart in Section A p.18 has been showing substantial inventory reduction for a year, but not so much from sales as people not listing properties. The reduction in Active listings will probably help the market somewhat. Inventories remain very high. Used inventory is now hovering about 4,000, a full 2,000 below August 2008, but the sales level has also shrunk dramatically. The number of Active listings continues to drop, which is positive (more below).

The 12 month moving average line of unit sales for Used homes had a pronounced upward slope through seven months ago. But with the spill, it had been showing a slight downward trend. Now once again, for the last several months, the line has begun to point up. On a unit basis, sales of all houses declined slightly, down 8% to 388 this month vs. 420 last month, which is 18% up from last year’s 328.

In the under $100,000 price range there has been an unusual pick up in activity over the last three months going from 60-80 sales per month to 100-110 per month. It almost appears that some entity is buying up these lower priced properties?

Used Home sales declined slightly, down 5% to 366 this month vs. 387 last month, which is up 24% from last year’s 296.(Sect A p.18). New Home sales were 22 this month vs 33 last month. The low number of sales of New homes reflects the intense competition from existing, and an extended slowdown of new construction.

New listings for New homes decreased to 44 from 45 in May. Used houses New listings increased to 849 from 728 in May ;(net inventory was still 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 June, there were 4,071 Active Used homes, a 6% reduction from 4,342 in May. The New home market, which peaked in June 2006 at 2,144 Active, now sits at 309.

The Absorption rate for New homes was 12 months of inventory for June vs. 12 in May. The Absorption rate for Used homes was 14 months of inventory for June vs. 13 in May. 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 12 months in June. (Sect A p.17).

Average sales price for all homes has been stable for the past year. For New units, prices increased to $243,712 from $208,387 last month. (Sect A p.14). Average Used home prices decreased to $207,033 from $209,913 in May.

Average Days On Market for New Sold properties in June was 249 this month vs. 257 last month. Days On Market for Used was 170 this month vs. 184 last month.

TWB 7/10/2011

July Alabama Coastal Real Estate Sales Off Another 9% from June

Baldwin County MLS* Observations for the month of July 2010: Real Estate Statistics for the Baldwin County, Alabama Coastal Areas:

Hopefully with the leak capped and there being no apparent major damage to the beaches, life will begin to return to normal, whatever that means. July, however, was a difficult month.

July sales dropped from June. Again this month this was the lowest corresponding month sales level on record. For the several months prior to the spill, the sales statistics had been showing signs of a bottom, and even some signs of recovery. July sales dropped 9% to $57,563,237 from June’s $62,930,836. This is 23% below July last year at $74,835,416 (Sect A p.2). As a result, the 12 month moving average line of sales is once again trending down. The sales results varied widely by area with the most coastal areas being hit quite hard.

Our chart in Section A p.18, shows the historical trends for absolute units of inventory and months of inventory for New and Used units. This chart continues to show flattening of inventory, which while still high, have recently leveled out.

The 12 month moving average line of unit sales for Used homes had a pronounced upward slope through two months ago. But with the spill, it now shows a downward trend due to the size and counter cyclical nature of the sales drop. On a unit basis, sales of all houses declined to 307 vs. 364 last month, which is considerably worse than last year’s 355.

Used house unit sales were down at 275 from 321 last month. New home unit sales deteriorated to 24 from 31 last month (Sect A p.18). The low number of sales of new homes reflects the intense competition from existing, and an extended slowdown of new construction.

New listings for New homes decreased to 42 in July from 53 in June, about double the number of sales. Used houses New listings decreased to 598 this month from 774 in June.

The absolute number of Used Active homes on the market, which had a slight peak mid-summer of ‘09, has once again started to level out, or even decline slightly. In July, there were 5,059 Active Used homes, a 9% reduction from 5,543 in June. The New home market which peaked in July 2006 at 2,144 Active, now sits at 396.

The Absorption rate for New homes was 12 months of inventory for July vs. 13 in June.  The Absorption rate for Used houses was 18 months of inventory for July vs. 19 in June. (Sect A p.17).

Average sales price for New units decreased to $180,809 from $185,933 last month. Life is still very difficult for those trying to sell higher priced homes, and inventory continues to climb. (Sect A p.14). Average Used home prices increased to $212,047 from $197,127 in June.

Average Days On Market for New Sold properties in July were 229 this month vs. 158 last month. Days On Market for Used was 162 this month vs. 153 last month.

TWB 8/09/2010

Alabama Coastal Real Estate Sales Down 30% from Last Year

Baldwin County MLS* Observations for the month of June 2010: Real Estate Statistics for the Baldwin County, Alabama Coastal Areas:

The impact and fear from the gulf disaster has made itself felt even more in June 2010 than what we observed last month.

June sales dropped from May. Indeed this was the lowest June sales level on record. For the several months prior to the spill, the sales statistics had been showing signs of a bottom and even some signs of recovery. June sales dropped 17% to $60,319,319 from May’s $72,308,369. This is 30% below June last year $86,589,827 (Sect A p.2). As a result the 12 month moving average line of sales has once again hooked down. The inventory of Used homes remains at a high level. The sales results varied widely by area with the most coastal areas being hit quite hard, Point Clear sales levels looked pretty good.

Our chart in Section A p.18, shows the historical trends for absolute units of inventory and months of inventory for New and Used units. This chart continues to show flattening of inventory, which while still high, have recently leveled out.

The 12 month moving average line of unit sales for Used homes had a pronounced upward slope through last month. But this month shows the downward trend due to the size and counter cyclical nature of the sales drop. On a unit basis, sales of all houses declined to 307 vs. 364 last month, which is considerably worse than last year’s 355.

Used house unit sales were down at 282 from 319 last month. New home unit sales deteriorated to 25 from 45 last month (Sect A p.18). The low number of sales of new homes reflects the intense competition from existing, and an extended slowdown of new construction.

New listings for New homes increased to 53 in June from 41 in May, about double the number of sales. Used houses New listings decreased to 765 this month from 813 in May.

The absolute number of Used Active homes on the market, which had a slight peak mid-summer of ‘09, has once again started to level out, or even decline slightly. In June, there were 5,262 Active Used homes, a 5% reduction from 5,567 in May. The New home market which peaked in June 2006 at 2,144 Active, now sits at 406.

The Absorption rate for New homes was 12 months of inventory for June vs. 13 in May.  The Absorption rate for Used houses was 18 months of inventory for June vs. 19 in May. (Sect A p.17).

Average sales price for New units decreased to $194,772 from $198,997 last month. Life is still very difficult for those trying to sell higher priced homes, and inventory continues to climb. (Sect A p.14). Average Used home prices decreased to $196,631 from $198,600 in May.

Average Days On Market for New Sold properties in June were 158 this month vs. 252 last month. Days On Market for used was 153 this month vs. 157 last month. (Note that we corrected a calculation for Days On Market so that these numbers are not directly comparable to prior reports.)

TWB 7/12/2010