PRICES JUMP IN DECEMBER

SALES REMAIN SOLID

NUMBER OF HOMES ON MARKET DECLINE

• 346 homes were sold in December versus 344 in November – Flat for the month and up 49.6% since January!
• Average home prices rose sharply in December with the average price rising to $158,090 versus $148,841 in November- a 6% increase. Average sales price for the year $158,090.00.
• The time it takes to sell a home rose 5 days to 91 days in December versus 86 in November- a 7% increase.  Average time for the year is 93.2.
• Supply of available inventory remained the same in December. At the end of November there was a 15.66 months supply of homes, in December it was 15.20 – virtually unchanged. Average supply for the year is 14.17 months.

“After an unexpected drop in sales in November we were braced for the worst in December. However, sales remained firm and the average priced home spiked 6%. With the expanding use of the first time homebuyer tax credit average sale prices have been dropping since June. The credit was set to expire in November and was extended to 2010. We believe the extension took some of the steam out of the market allowing November closings to roll over to December. Following that logic through, December sales could have been artificially higher, couple this with a traditional seasonal drop in sales in January and we are forecasting January sales to be lower. The market remained under $200,000 in December with most areas sales remaining unchanged. Significant moving areas in December; Cottage Hill, Theodore and Montrose were notable on the downside, Central Baldwin, Gulf Shores and Springhill led the upside. Praytor Realty led all companies with listings sold in the Springhill area with Sullins Arendall leading our sales in December. National and local economic news continue to improve pointing towards a solid year in 2010. That having been said, unseasonably cold temperatures starting the new year coupled with a traditional seasonal drop in sales in January we are expecting 2010 to start soft and build forward.” Tommy Praytor, President, Praytor Realty, Co., Inc.

HOME SALES TUMBLE IN NOVEMBER

LOWER PRICED HOMES CONTINUE TO SELL

NUMBER OF HOMES ON MARKET DECLINE

• 344 homes were sold in November versus 427 in September – Off 19.4% for the month and up 49.6% since January!
• Average home prices continued to decline in November with the average price in November dropping to $148,841 versus $154,109 in September- a 3% decrease. Average sales price for the year $158,075.00.
• The time it takes to sell a home fell 3 days to 86 days in October versus 89 in September- a 3% decrease.  Average time for the year is 93.5.
• Supply of available inventory rose dramatically in November. At the end of October there was a 12.53 months supply of homes, that number changed to 15.66 months in November – an increase of 25%. Average supply for the year is 14.18 months.

“Sales fell dramatically in November with only 344 homes sold in November versus 427 in October a 19.4% drop. The drop in sales was a surprise considering the momentum the market had built up over the Summer. The extension of the first time homebuyer tax credit may have taken some of the urgency out of the market in November that we hope will roll over to December and the following months. In addition to fewer homes being sold the trend continued to lower priced homes and sales prices were lower again by 3%. While prices were lower, Sellers did average getting over 96% of the list price for the homes that sold. This would indicate that prices are not dropping but less expensive homes are selling. The market still remains under $200,000 with 83% of all the homes sold under $200,000. The supply of available inventory rose drastically, up 25% in one month! This rate is tied to the number of homes sold, so with fewer homes sold the supply went way up. On a positive note we did see the total number of homes on the market come down slightly. The areas of the market hit the hardest were the areas that had been selling the most homes, Midtown, Municipal Park, Cottage Hill, West Mobile and Semmes. Daphne/Montrose was the only area that really experienced a rise in sales in November. Traditionally, December is a slow month and after the unexpected drop in sales in November we could close out the year on a weak note. The one real positive to November’s sales is that November 2009 out paced November 2008. This is the second month in a row that home sales in 2009 were higher than 2008 ” Tommy Praytor, President, Praytor Realty, Co., Inc.
 

SEPTEMBER HOME SALES JUMP 6%

HOME PRICES DROP 4.2%

• 429 homes were sold in September versus 403 in August – a 6% increase for the month and up 91% since January!
• Average home prices posted a loss in September with the average price in September dropping to $158,533 versus $165,587 in August- a 4.2% decrease. Average sales price for the year $159,627.00.
• The time it takes to sell a home rose 8 days to 95 days in September versus 87 in August- a 9% increase.  Average time for the year is 94.7.
• Supply of available inventory decreased in September. At the end of August there was a 13.22 months supply of homes, that number decreased to 12.34 months in September – a 7% decrease. Average supply for the year is 14.22 months.

“After the expected drop in sales in August, September was a critical month to gauge the health of the short term housing market. In 2008 September did not make a gain over August and over the next 6 months sales dropped over 50%. A nice 6% rise in sales in September point to a continued move upward over the near term. The $8,000 1^st time homeowner tax credit has been a catalyst in this market with over 20,000 Alabamians already having claimed the credit. When the final total on this program is tallied up we expect this number to be significantly higher. Timing on this credit will be critical as to what happens to our market for the remainder of 2009. The official end date is November 30^th. Congress is being lobbied hard by the Realtors to extend the credit. No extension and the under $200,000 market will be on fire for the next 2 months then tailing off in December and flat in the first quarter of 2010. An extension will take a little steam off the short term but should extend the viability of the under $200,000 market through the middle of next year. To illustrate where the under $200,000 market is right now, there is only a 9 month supply compared to 24 months for over $200,000, 36 months over $300,000 and 43 months over $500,000. After going up every month this year the number of houses on the market went down, not much but it did go down. The extension or the non extension of the First time homebuyers tax credit will have a great deal of influence over the near term housing market. Municipal Park, Cottage Hill South, Semmes and Daphne/Montrose/Spanish Fort all experienced a 50% or better increase in sales in September. ” Tommy Praytor, President, Praytor Realty, Co., Inc.
 

Praytor Realty, Co. Inc.

4742 Airport Blvd.

Mobile, AL 36608

251-344-7065

 

 

BACK TO SCHOOL HURTS HOME SALES

AUGUST HOME SALES DOWN 10%

HOME PRICES UP 2.4%

• 403 homes were sold in August versus 447 in June – a 10% decrease for the month and up 79% since January.
• Average home prices posted a slight gain in August with the average price in August rising to $165,587 versus $161,725 in July- a 2.4% increase.
• The time it takes to sell a home dropped 9 days to 87 days in August versus 96 in August- a 9% decrease.
• Supply of available inventory increased in August. At the end of July there was a 11.88 months supply of homes, that number increased to 13.21 months in August - an 11% increase.

“As expected, back to school took it’s toll on home sales with sales in August dropping 10% to 403 homes. The 2009 August decrease of 10% was significantly less than 2007, off 14% and 2008, off 13.5%. The market remained firmly under $200,000 with 78% of the homes sold under $200,000. The briskness of the under $200,000 market is confirmed not just by the total volume sold but also by the number of homes sold out of the homes listed. 1 out of 10 homes listed under $200,000 sold in August versus 1 out of 26 homes over $200,000. Additionally, homes under $200,000 represented 78% of all sales in August while they represent only 56% of the homes listed. We expect the under $200,000 market to continue to be brisk and tighten as we get closer to the expiration of the $8,000 first time homebuyer tax credit. Average home prices rose slightly in August and they should remain in the $160,000-$170,000 through the expiration of the $8,000 first time homebuyer tax credit and the remainder of the year. While the total number of homes on the market have remained level over the last few months, the supply of homes rose sharply from 11.88 months in July to 13.21 in August. The dip in sales pushed this number higher in August and a return to pre-back to school sales will reduce this number significantly. In conclusion, the dip in August home sales came in on the lower end of the traditional 10-15% range estimated last month, pointing towards a stable sales growth for the remainder of 2009. The sluggishness of the market over $200,000 and the total number of homes on the market will continue to weigh on the Mobile market.” Tommy Praytor, President, Praytor Realty, Co., Inc.
 

Praytor Realty, Co. Inc.

4742 Airport Blvd.

Mobile, AL 36608

251-344-7065

www.praytorrealty.com

tpraytor@aol.com

JULY FIREWORKS SPARK SALES

JULY HOME SALES UP 9%

WHILE HOME PRICES FELL 6.5%

• 447 homes were sold in July versus 409 in June – a 9% increase for the month and up 98% since January!
• Average home prices posted a significant loss in July with the average price in June dropping to $161,725 versus $173,011 in June- a 6.5% decrease.
• The time it takes to sell a home rose 4 days to 96 days in July versus 92 in June- a 4% increase.
• Supply of available inventory decreased in July. At the end of June there was a 12.88 months supply of homes, that number declined to 11.88 months in July - a 7.8% decrease.

“After a step back in June the Mobile housing market exploded again in July with a 9% increase and the highest monthly sale of homes since September of last year. The rest of the numbers in this months report need a deeper look than just the number it self. Average home prices declined sharply in July. Normally this would be cause for concern but we are still feeling the first time home buyer effect as first time buyers take advantage of the $8,000 tax break. Earlier in the year we forecasted that increased usage of the program would increase sales but would be a drag on prices, first time buyers are usually buying less expensive homes. The fact that sale prices are 95.63% of the list price proves market pricing is remaining firm. The fact is less expensive homes, under $200,000, are what is selling. The time to sell rose because of 2 issues, the increasing tightness in the under $200,000 market, buyers are having to go to homes that have been listed longer to find a home. The other factor is people who have had their homes on the market for some time are lowering prices to sell their home. Price reductions work but are normally done after the home has been on the market for some time. Therefore when the home sells, its days on market is longer than what it would have been if price properly at the time it was listed. Another notable is that for the first time this year the number of homes on the market fell, not much but it did go down after climbing every month this year. While sales news was good in July there is a traditional fall off of sales in August of 10-15 percent. If the Mobile market can buck this trend in August it could set the stage for a very active fall.” Tommy Praytor, President, Praytor Realty, Co., Inc.
 

Praytor Realty, Co. Inc.

4742 Airport Blvd.

Mobile, AL 36608

251-344-7065

tpraytor@aol.com