What happens when the population of your former farm-country county soars by 26,298 over a six-year period? That’s 12 people a day, according to U.S. Census data reported by AL.com. What happens when this rate actually accelerates, as it did from 2015-2016, with 4,873 new folks making Baldwin County their home?
Home sales turn blistering hot in Spanish Fort, Daphne and Fairhope.
The number of homes sold in the first quarter of 2017 is up 22% over this time last year. And the average sales price is up 6.4%, too, driven by the activity in Fairhope.
New construction continues to advance its market share, rising from 33% of all sales to 38% in the first quarter of 2017.
Smart people know how to capitalize on growth on the beautiful Eastern Shore of the Mobile, Ala., metro area. Now, schools, planners, transportation agencies and local governments will need to get up to speed to cope with the growing pains.
Before we examine the house-sales numbers, it’s worth noting that the data reflects some interesting differences among the sister-cities on the Eastern Shore.
Fairhope’s prices are the highest. That market is also highest in another category: The amount that sellers cut from their listing prices.
Here’s a question to ponder: Late last year, Fairhope imposed a six-month moratorium on approval of major new residential and commercial developments. What will be the impact on house prices if there’s less new construction in the pipeline?
In Daphne and Spanish Fort, new construction continues largely unabated, and the pace of sales is quickening. In the first quarter of 2017, year-over-year sales in Daphne jumped by 27%. In Spanish Fort, they spiked 69%.
The bottom line is there a shortage of houses generally under $200,000, where there isn’t much competition from new construction.
On to the numbers:
Eastern Shore summary: 451 homes sold, compared to 368 sales in the 1st quarter of 2016. Average sales price increased from $257,474 t0 $274,003. The average time that it took to sell rose from 140 days to 152. The amount sellers took off their list prices in order to sell tightened from 2.5% to 2.1%.
Fairhope: 176 homes sold vs 169 sales this time last year. Average sales price rose from $283,316 to $331,181. On average, days on market increased from 137 to 151. And sellers settled for a bit less than they did in the 1st quarter of 2016 – 2.77% vs 2.9%.
Daphne: 187 homes sold, compared with 147 sales in the 1st quarter of 2016. Average sales price decreased slightly from $220,113 to $219,606. Days on market was little changed from 140 this time last year to 141. At this time last year, sellers were taking 2.3% of list price in order to sell. Now, it’s just 1.53%.
Spanish Fort: 88 homes sold vs 52 sales this time last year. Average sales price fell from $279,106 to $275,241. Days on market stretched from 154 days to 179. This time last year, sellers took 2.4% off their list prices in order to sell. Now it’s 1.73%.