We may have hit a new normal in home sales on the Eastern Shore of Mobile, Ala.
For the last three months around a hundred homes have sold, a slight increase over the same time in 2010. What’s significant is that this time last year the housing market was buoyed by the Home Buyer Tax Credit. Without this incentive, our market has fallen into a predictable yet still less than robust pattern.
In Spanish Fort, Daphne and Fairhope, other statistics have become consistent:
n Inventory around 1,000 homes
n Market absorption rate of 10 months, meaning it remains a buyer’s market.
n List-to-sale percent of 95-96 percent
n And finally, two-thirds of all sales are under $300,000, putting pressure on the upper end sellers to compete for a few buyers.
What does fluctuate is what exactly is selling. In May, 2011, 22% of sales were new construction, which makes up 14% of homes on the market, and 18% of sales were foreclosures, which make up 10% of the current inventory. In April, sales were evenly divided between foreclosures, new homes and existing homes. So this is a better month for existing home sales.
From monitoring default notices and foreclosures filed, I see no reduction in the number of distressed properties arriving on the market. And I hear that new construction may be expanding in the market.
Here are the stats for the Eastern Shore:
Total houses for sale: 1,023
Spanish Fort: 130
Daphne: 368
Fairhope: 525
Pending sales
Total: 161
Spanish Fort: 23
Daphne: 69
Fairhope: 69
Closed sales for May, 2011
Total: 99
Average sales price: up to $254,506, compared to $197,658 in April and $204,757 in March.
Median sales price: $220,000, compared to $164,900 in April and $177,500 in March.
List to sale percentage: 95.26%, a bit worse than 96.05% in April and 95.97% in March.
Spanish Fort: 12
Daphne: 47
Fairhope: 40
(Data from the Baldwin County Multiple Listing Service)
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