The November report of Baldwin County single family sales has been complete. If you would like to see the Mobile County report, please scroll down the blog.
Each month, we compile data for single family homes sold in Baldwin County according to the Baldwin County Association of Realtors MLS data. We do this to analyze trends in our area. The charts give the public a snapshot of the Baldwin County real estate market. The market in Baldwin County is totally different than its counterpart to the west in Mobile County. We are seeing a market that has come to a standstill. The numbers in all reporting categories are at their lowest points that they have been in the 18 months of sales analysis data.
We look at 5 areas of analysis – Number of Units Sold, the Median Sales Price of all of the homes sold, the number of Homes Available for Sale (aka inventory level), the Median Days on Market for the all of the Homes Sold, and the Absorption Rate. The absorption rate is calculated by dividing the number of available homes by the number of units sold. This calculation returns the number of months of inventory available. If no new homes were added, theoretically this is the amount of time it would take to sell all existing homes that are currently on the market. Traditionally, if the absorption rate is higher than 6 months, then the market can be considered a buyer’s market.
The number of sales has dropped to 127. This number is a huge drop off of 29% from November of 2006, which was a low number in itself. There could be a number of reasons for this downturn. Baldwin County does not have the business base that Mobile County does. Baldwin County traditionally has been a place to move up area and a destination for retirees. The cost of a home in Baldwin County is 25% higher than in Mobile County. What we are seeing, in our opinion, is that right now the public believes there is no compelling reason to buy in Baldwin County. As residents, we see many reasons to live here– close proximity to the beaches and the eastern shore of Mobile Bay, the new schools, and new shopping centers. We think the opening of the new 200 acre Spanish Fort Town Center featuring Bass Pro Shop will draw more residents to our County. Here is this month’s chart (click on the chart to see a larger view):
Each month, we compile data for single family homes sold in Baldwin County according to the Baldwin County Association of Realtors MLS data. We do this to analyze trends in our area. The charts give the public a snapshot of the Baldwin County real estate market. The market in Baldwin County is totally different than its counterpart to the west in Mobile County. We are seeing a market that has come to a standstill. The numbers in all reporting categories are at their lowest points that they have been in the 18 months of sales analysis data.
We look at 5 areas of analysis – Number of Units Sold, the Median Sales Price of all of the homes sold, the number of Homes Available for Sale (aka inventory level), the Median Days on Market for the all of the Homes Sold, and the Absorption Rate. The absorption rate is calculated by dividing the number of available homes by the number of units sold. This calculation returns the number of months of inventory available. If no new homes were added, theoretically this is the amount of time it would take to sell all existing homes that are currently on the market. Traditionally, if the absorption rate is higher than 6 months, then the market can be considered a buyer’s market.
The number of sales has dropped to 127. This number is a huge drop off of 29% from November of 2006, which was a low number in itself. There could be a number of reasons for this downturn. Baldwin County does not have the business base that Mobile County does. Baldwin County traditionally has been a place to move up area and a destination for retirees. The cost of a home in Baldwin County is 25% higher than in Mobile County. What we are seeing, in our opinion, is that right now the public believes there is no compelling reason to buy in Baldwin County. As residents, we see many reasons to live here– close proximity to the beaches and the eastern shore of Mobile Bay, the new schools, and new shopping centers. We think the opening of the new 200 acre Spanish Fort Town Center featuring Bass Pro Shop will draw more residents to our County. Here is this month’s chart (click on the chart to see a larger view):
The median sales price of a home in November 2007 was $186,000 which is down 2% from November 2006. Here is this month’s chart (click on the chart to see a larger view):
The number of Available Homes for sale has been dropping for the last few months. Truth be told there are more homes available for sale than there are buyers for those homes. Although it is great for buyers because of the greater negotiating power they have, it creates a stagnant market. There are many homes that a buyer has to sort through to find their particular bargain choice. In November 2007, there were 3238 single units for sale. In Mobile County, which has a much larger population base, there are 2991 single units for sale. These number don’t tell the whole story because in Mobile County condos are included in the single family numbers. In other words, there is an abundance of available inventory in Baldwin County. Here is this month’s chart (click on the chart to see a larger view):
The Days on Market field was 123 days for the homes that did sell. It is very important in Baldwin County that the home be priced correctly in order for it to sell. The seller will have significant competition in the market place. Here is this month’s chart (click on the chart to see a larger view):
Absorption Rate is the data element that allows the public to see the market in its truest picture. The data shows whether it is a buyers market (Absorption rate greater than 6.0) or a seller’s market. Needless to say in Baldwin County it is a buyer’s market. There is a 2 year supply of inventory. This number is at historical high levels and is very concerning. The shear amount of inventory and low number of buyers will have no choice but to affect pricing. Sellers need to understand the realities of the real estate market in Baldwin County and price their homes to entice buyers. Unlike Mobile County, where there is new industries coming in and existing businesses are expanding, there is no outside influence to Baldwin County population growth. There may be a uptick in the bedroom communities of Daphne and Spanish Fort due to the growth in Mobile County, but other areas of the county will not have a significant increase in population. There needs to be a recruitment of businesses to Baldwin County to increase the population base. Here is this month’s Absorption Rate chart (click on the chart to see a larger view):
The Days on Market field was 123 days for the homes that did sell. It is very important in Baldwin County that the home be priced correctly in order for it to sell. The seller will have significant competition in the market place. Here is this month’s chart (click on the chart to see a larger view):
Absorption Rate is the data element that allows the public to see the market in its truest picture. The data shows whether it is a buyers market (Absorption rate greater than 6.0) or a seller’s market. Needless to say in Baldwin County it is a buyer’s market. There is a 2 year supply of inventory. This number is at historical high levels and is very concerning. The shear amount of inventory and low number of buyers will have no choice but to affect pricing. Sellers need to understand the realities of the real estate market in Baldwin County and price their homes to entice buyers. Unlike Mobile County, where there is new industries coming in and existing businesses are expanding, there is no outside influence to Baldwin County population growth. There may be a uptick in the bedroom communities of Daphne and Spanish Fort due to the growth in Mobile County, but other areas of the county will not have a significant increase in population. There needs to be a recruitment of businesses to Baldwin County to increase the population base. Here is this month’s Absorption Rate chart (click on the chart to see a larger view):
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