Sales: According to the Mobile Area Association of Realtors, June home sales in the area increased 17.5% year-over-year (Y/Y) from 567 to 666 closed transactions, marking 13 consecutive months of Y/Y gains. Sales increased 24.3% from May and are now up 19.2% year-to-date. Two more resources to review: Quarterly Report and Annual Report.
For all Mobile-area housing data, click here.
Inventory: June listings (546) increased 16.7% from May but declined 29.3% from one year ago. Months of supply (inventory to sales ratio) also decreased from 1.4 to 0.8, reflecting a market where sellers generally have elevated bargaining power.
Pricing: The median sales price in June was $203,500, an increase of 19% from one year ago and a decrease of 5.1% from May. 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 June averaged 16 days on the market (DOM), a record low and 36 days fewer than in June 2020.
Forecast: June sales were 107 units, or 19.2%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 559 sales for the month, while actual sales were 666 units. ACRE forecast a total of 2,840 residential sales year-to-date, while there were 3,032 actual sales through June, a difference of 6.8%.
New construction: The 42 new homes sold represent 6.3% of all residential sales in the area in June. Total sales increased 10.5% year-over-year. The median sales price in June was $292,795, an increase of 31.2% from one year ago and an increase of 5% from May.
NAR commentary: According to the National Association of Realtors (NAR), existing home sales nationwide increased in June, rising 1.4% from May (seasonally adjusted annual rate). The gain ends four consecutive months of declining sales. June sales were up 22.9% from one year ago. The median sales price for existing homes hit another historic high ($363,300), rising 23.4% year-over-year and marking 112 consecutive months of year-over-year gains. Rising home prices are largely a result of low housing inventory amid significantly elevated demand. Supply did improve somewhat, rising 3.3% from May, but is still down 18.8% from June 2020. Months of supply (2.6 months) increased modestly from May but is still well below June 2020 (3.9 months).
Lawrence Yun, chief economist for NAR, said, “Supply has modestly improved in recent months due to more housing starts and existing homeowners listing their homes, all of which has resulted in an uptick in sales. Home sales continue to run at a pace above the rate seen before the pandemic.”
Yun added that home prices are unlikely to decline, saying, “At a broad level, home prices are in no danger of a decline due to tight inventory conditions, but I do expect prices to appreciate at a slower pace by the end of the year. Ideally, the costs for a home would rise roughly in line with income growth, which is likely to happen in 2022 as more listings and new construction become available.”
ACRE commentary: Home sales in Alabama increased year-over-year (Y/Y) for the 13th consecutive month in June, rising 14.4%. Demand remains significantly elevated as home sales are now up 21.8% year-to-date. The statewide median sales price hit another record high of $216,580, with sales price growth rates moderating somewhat, rising 11.7% Y/Y. The state’s housing supply received a small measure of relief as listings increased 6.3% from May, but is still down 39.4% from one year ago. June’s 1.2 months of supply also represents a record low, with properties selling an average of 34 days faster than in June 2020.
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 June 1-30. Thus, the performance represented is historical and should not be used as an indicator of future results.