Each month, we compile data for single family homes sold in Mobile County according to the Mobile Area Association of Realtors MLS data. We do this to analyze trends in our area. The charts give the public a snapshot of our local real estate market.
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 units sold of 335 is roughly 10% down from same period as last year. There was a slight increase in the number of sales in December 2006 compared to the number of sales in November 2006. This past year, the number of units sold in December showed a decrease from the number of units sold in November. Click on the chart to see a larger view of the chart.
The Median Sales Price of a home sold in Mobile County is up 3.7 % compared to the median sales price of a home in Mobile in December of 2006. This month's value is $139,000. The median sales price of a home has risen 12% in the past 18 months. Please click on the chart below to see a larger version of the chart.
The inventory levels in Mobile continue to be replenished. Even though the number of homes available for sale decreased this month, it is up significantly from this time last year. In fact the number of available homes is up 31%. Compared to 18 months ago, the number of available homes has increased almost 70%. The Mobile market had its inventory depleted after Hurricane Katrina, so this percent increase in the number of homes is not too much a level of concern at this time. As the inventory levels increase, buyers are given much more bargaining power. Click on the chart to see a larger view of the chart.
The Days on Market field has also shown a huge increase from the same period as last year. In fact the number of days has increased 15% to 76 days which is the highest it has been in the 18 months of data. Click on the chart to see a larger view of the chart.
The Absorption Rate is the data element that gives you the best analysis of the real estate market. The Aborption Rate in Mobile has been increasing for the most part for the last 18 months. The December number of 8.63 months supply of homes is at the highest point it has been in the last 18 months. As the number of homes added to inventory and the number of sales decreases, the net result will be higher absorption rates. We would expect this rate to increase in the next few months until the higher volume selling months of the Spring get here in March. Click on the chart to get a larger view of the analysis.
Please feel free to drop us a line if you have any questions regarding these statistics or if you need neighborhood specific information.
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