Eastern Shore market rebounds with surprisingly strong numbers

Four years. Four long, miserable years of home price declines.

Are over.

The average sales prices for homes in Spanish Fort, Daphne and Fairhope rose on average 12% in 2012. The number of home sales also increased 12%.

The Mobile, Ala., metro market on the Eastern Shore regained more than a third of the value that had been lost (29.5%) since the onset of the Great Recession and the housing market collapse, which began locally in 2008.

Here’s what happened:

-- Foreclosures and short sales, which made up 31% of sales in 2011, dropped to 22% of sales in 2012. And this month only 6% of homes currently on the market are foreclosures or short sales. This may change but the numbers are certainly headed South.

--n   -- The announcement of the $600 million Airbus plant project in Mobile that’s expected for employ 3,000 when it’s running at full speed in 2016 has already boosted sales. Airbus hires are trickling in, and buyers concerned that home prices would spike as a result got into the market in 2012.

-- New construction continued to gain ground in the market though the average price per square foot was little changed from $97.06 in 2011 to $98.78 in 2012. New home sales grew from 20% of all sales in 2011 to 24% in 2012.

--   -- Twelve sales this year on the Eastern Shore were listed at more than $1 million; 184 existing home sales were more than $300,000. This upper-end market had been nearly non-existent in the last few years.

At this writing, housing inventory on the Eastern Shore is hovering around 700 homes and there are shortages of homes in the lowest price ranges, as well as in some specific pockets of inventory.

As the market shifts from buyer control to one that’s more balanced between buyer and seller, home sale participants can expect to see friction as buyers and sellers struggle to see who has the upper hand.

On to the numbers:

In 2012, there were 1,239 sales with an average price of $236.975 compared to 1,099 sales in 2011 with an average price of $211.455. On average, sellers took 4% off their list price in order to sell; while in 2011 they settled for 5% less. Days on market remained little changed at 173 days.

Fourth quarter sales also grew, with 263 sales compared to 243 sales during the same period last year. On the Eastern Shore, the average sales price was $239,858 compared to $190,381 in the 4^th quarter of 2011.

Spanish Fort: 186 homes sold in 2012 vs 165 in 2011. Average sales price dropped from $255,589 to $247,112. Sellers took 4% off their prices in order to sell. Market time remained little changed at 5 months.

In the 4^th quarter 37 homes sold, while 38 homes sold during the same period in 2011. Average sales price rose from $230,811 in the 4^th quarter of 2011 to $232,414. Sellers took 4.5% off their prices. Average days on market: 127.

Daphne: 527 homes sold compared to 494 in 2011. Average sales price rose from $178,478 to $181,550. Sellers settled for slightly less than 3% less in order to sell. Market time dropped from 159 days to 146 days.

In the 4^th quarter, 112 homes sold compared with 118 sales during the same time in 2011. Average sales price dropped from $197,794 to $192,756. Sellers took 3.25% off their prices. Average days on market fell from 161 days to 156.

Fairhope:  526 homes sold, a marked increase over the 440 sales in 2011. Average sales price jumped from $231,928 to $288,920 (remember those million dollar sales?). Sellers took on average 5% less than list price. Average market time stretched from 194 days to 208 days.

In the 4^th quarter, 114 homes sold vs 87 sales during the same period in 2011. Average selling price was $288,549 compared with $207,620 in 2011. Sellers took 4% off their prices to sell. Market time: 217 days.