Sales: According to the Mobile Area Association of REALTORS, October home sales in the area increased 27.4% year-over-year (Y/Y) from 398 to 507 closed transactions. Sales increased 10.2% from September and are now up 11.7% year-to-date. Two more resources to review: Quarterly Report and Annual Report.
For all Mobile-area housing data, click here.
Inventory: Homes listed for sale decreased 58.3% from 1,346 listings one year ago to 562 in October. Months of supply dropped from 3.4 to 1.1, reflecting a market where sellers generally have elevated bargaining power.
Pricing: The median sales price in October was $176,000, an increase of 18.1% from one year ago and a decrease of 1.7% from September. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood.
Homes sold in October averaged 38 days on the market (DOM), 14 days faster than October 2019.
Forecast: October sales were 112 units, or 28.4%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 395 sales for the month, while actual sales were 507 units. ACRE forecast a total of 4,195 residential sales year-to-date, while there were 4,602 actual sales through October, a difference of 9.7%.
New Construction: The 27 new homes sold represent 5.3% of all residential sales in the area in October. Total sales increased 22.7% year-over-year. The median sales price in October was $267,900, an increase of 22.7% from one year ago and an increase of 2.3% from September.
NAR commentary: According to the National Association of Realtors (NAR), existing home sales nationwide increased 4.3% from September (seasonally adjusted annual rate), rising for the fifth consecutive month, and increased 26.6% from one year ago. Sales prices continued to grow at higher rates than before the pandemic, rising almost 16% year-over-year.
Lawrence Yun, chief economist for NAR said, “Considering that we remain in a period of stubbornly high unemployment relative to pre-pandemic levels, the housing sector has performed remarkably well this year. The surge in sales in recent months has now offset the spring market losses. With news that a COVID-19 vaccine will soon be available, and with mortgage rates projected to hover around 3% in 2021, I expect the market’s growth to continue into 2021.”
ACRE commentary: Home sales in Alabama increased for the fifth consecutive month in October, rising 32.2% year-over-year. Sales usually begin to slow in the fall months, but low mortgage rates and demand for more housing space has resulted in significantly elevated sales activity. For additional context, year-over-year sales gains in October averaged 6.7% during the last 5 years, and it is unlikely that the large gains seen in recent months will continue long-term. Sales prices continue to grow at a faster rate than before the pandemic, which could motivate more potential sellers to list their homes going forward. Tight inventory has played a large role in driving sales prices upwards, with total listings down 32.3% in October.
Click here to view the entire monthly report.
The Mobile Residential Monthly Report is developed in connection with the Mobile Area Association of Realtors to better serve area consumers.
Editor’s Note: All information in this article reflects data provided to the Alabama Center for Real Estate for the time period October 1 – 30, 2020. Thus, the performance represented is historical and should not be used as an indicator of future results, particularly considering the impact of COVID-19 on the housing market.
