Baldwin County home sales fell 2% year-on-year in July
Sales: According to Baldwin Realtors, July residential sales were down 2.4% year-on-year (Y / Y), from 895 to 874 closed deals. Contrary to seasonal trends, sales were down 17.8% from June. Sales are now up 27.9% year-to-date. Two other resources to consult: quarterly report and annual report.
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Inventory: The total number of homes listed in July fell 37.9% year-on-year, from 2,011 to 1,249 listings. At the current selling rate, all active stocks in the market would sell in 1.4 months, compared to 1 month in June and 2.2 months in July 2020. The point of equilibrium where buyers and sellers have the power to roughly equal negotiation is 6 months from the supply.
Price : Baldwin County’s median July selling price was $ 290,494, an increase of 14.26% from a year ago and a decline of 4.6% from June. The different sample size (number of residential sales in comparative months) may contribute to statistical volatility, including pricing. ACRE recommends consulting a local real estate professional to discuss prices, as they vary from neighborhood to neighborhood.
Homes sold in July lasted an average of 32 days on the market, a record and 50 days shorter than in July 2020.
Forecast: July sales were 39 units, or 4.67%, higher than the Alabama Center for Real Estate (ACRE) monthly forecast. ACRE forecast 835 sales for the month, while actual sales were 874 units. ACRE has forecast a total of 5,190 residential sales since the start of the year, while there were 5,783 actual sales through June, a difference of 11.4%.
New construction: The 119 new homes sold represented 13.6% of all residential sales in July. Total sales decreased 17.4% year-on-year. The median selling price of new home sales was $ 290,494, an increase of 14.3% from a year ago and an increase of 10.8% from June.
NAR Comment: According to the National Association of Realtors (NAR), sales of existing homes nationwide increased for the second consecutive month in July, up 2% from June (seasonally adjusted annual rate). July sales increased 1.5% from a year ago. The median selling price of existing homes was $ 359,900, up 17.8% year-over-year and marking 113 consecutive months of year-over-year gains. The rise in house prices is largely the result of low housing inventories against a backdrop of considerably high demand. Supply has improved somewhat, increasing 7.3% from June 2021 and down 12% from a year ago. July’s 2.6 month supply increased slightly from June (2.5) but remains well below July 2020 (3.1).
Lawrence Yun, chief economist of NAR, said, “We are seeing stocks start to rise, which will reduce the intensity of multiple offers. Much of the growth in home sales still occurs in high-end markets, while mid-to-lower tier areas aren’t seeing as much growth as there are still too few starter homes available.
Yun added that house prices are expected to moderate in the coming months. “While we shouldn’t expect home prices to drop over the next few months, it is possible that they will level off as inventories continue to gradually improve. “
ACRE comment: Home sales in Alabama fell year over year in July, falling 1.4% (unadjusted). Sales were also down month over month, down 7.7% from June. Year-to-date, however, sales are up 17.3% from 2020. The statewide median selling price hit a new record high of $ 218,374, with rates growth in selling prices which moderated somewhat, increasing by 11% year-on-year. The state’s housing supply received a much-needed relief as listings rose 12% from June, but are still down 29.3% from a year ago . With sales slowing and inventory rising, months of supply fell from 1.2 months in June to 1.5 in July. Registrations are also expected to increase gradually over the next few months.
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The Baldwin County Monthly Residential Report is developed in collaboration with the Baldwin’s real estate agents to better serve consumers on the Gulf Coast.
Editor’s Note: All information in this article reflects data provided to the Alabama Center for Real Estate for the period July 1-31. Thus, the performance represented is historical and should not be used as an indicator of future results.