Baldwin County residential sales in March up 7% from prior month; YTD sales up 12%
Baldwin County area residential sales totaled 353 units in March, an increase of 6.6 percent from the prior month. Sales were a bit more sluggish when compared to last March as reflected by a slip in growth of 8.3 percent. Year-to-date through March, closed transactions remain up 12.4 percent.
Baldwin County residential sales improved 7% in March from prior month. Housing Inventory now down 53% from its March 2007 peak. Infograph courtesy of ACRE. All rights reserved.
Supply: The Baldwin County housing inventory in March was 3,123 units, an increase of 8.6 percent from March 2013. The area's housing inventory has declined by 51.4 percent from the month of March peak in 2007 (6,432 units). There were 8.8 months of housing supply (7-8 months considered equilibrium for March) in March 2014 versus 7.5 months of supply in March 2013, representing an unfavorably increase of 18.4 percent. In addition, March inventory increased 3.6% from the prior month. This direction is consistent with historical data that indicates March inventory on average (’09-’13) traditionally increases from the month of February by .5 percent. An improving market increases the confidence level of both consumers and builders resulting in more housing units being brought to the market.
Demand: March residential sales increased 6.6 percent from the prior month. This favorable direction is consistent with historical data indicating that March sales, on average (’09-’13), increase from the month of February by 31.6 percent.
Existing single family home sales accounted for 58% percent (down from 62% in March'13) of total sales while 11 percent (up from 5% in March'13) were new home sales and 31 percent (down from 33% in March'13) were condo buyers. Actual March sales were 222 units below our monthly forecast.
Pricing: The Baldwin County median sales price in March was $192,000, an increase of 9.1 percent from last March ($176,000) and 1.9 percent above the prior month ($188,500). Real estate sales are seasonal and prices will very from month-to-month. Historical data ('09-'13) reflects that March median sales price traditionally increases from the month of February by 1.8 percent.
Industry Perspective: Lawrence Yun
, chief economist of the National Association of Realtors® and 2014 ACREcon
recently commented on the sluggish sales in early 2014, "We had ongoing unusual weather disruptions across much of the country last month, with the continuing frictions of constrained inventory (at national level), restrictive mortgage lending standards and housing affordability less favorable than a year ago. Some transactions are simply being delayed, so there should be some improvement in the months ahead. With an expected pickup in job creation, home sales should trend up modestly over the course of the year.”
The Baldwin County Residential Monthly Report is work product developed in conjunction with the Baldwin County Association of REALTORS to better serve gulf coast consumers. The ACRE monthly report is provided to illustrate the "general" market direction & trends when comparing prior periods with the most current residential data available. Real estate is local and statistics will fluctuate between areas within a city including subdivisions. ACRE recommends that you consult a local real estate professional for "specific" advice associated with your market.
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