MOBILE, Ala. — Mobile home sales slipped again in August, with fewer buyers closing on houses and prices edging lower, according to the latest monthly housing figures for Mobile County.
Existing home sales fell 15% from July to August, dropping from 453 homes to 385, according to data from the Alabama Center for Real Estate at the University of Alabama. The average sales price dipped about 1%, from $280,017 in July to $277,280 in August.
Mobile Realtor Tommy Praytor, president of Praytor Properties, said persistently higher interest rates and energy prices continue to squeeze the Mobile housing market. The center reported another month of lower home sales for Mobile.
August by the numbers
- Existing home sales: 385, down 15% from 453 in July.
- Average sales price: $277,280, down about 1% from $280,017.
- Homes listed for sale: 1,330, up about 1% from July.
- Average time to sell: 58 days, unchanged.
- New-home sales: Down 26% from July, after a 46% drop in July.
- Average new-home price: $353,441, up 9.5% from July.
- New-home price per square foot: $182.
- Time to sell a new home: 90 days, up from 87.
Fewer sales, steady inventory
The 68-home drop in sales from July to August was the biggest headline in the report. At the same time, the number of homes on the market held essentially steady, rising just 1% to 1,330 listings.
Because sales and new listings kept pace with each other, the time it took to sell a home in Mobile did not change, holding at 58 days. That stability suggests that while fewer buyers are closing deals, the market is not seeing a sudden flood of unsold homes.
A rough way to gauge the balance between buyers and sellers is to compare inventory with monthly sales. At August’s pace of 385 sales, the 1,330 homes listed would take about three and a half months to sell if no new listings came on the market. Real estate economists generally consider about six months of supply a balanced market, so by that rough measure Mobile still leaned toward sellers, though less so than during the tight markets of recent years.
Prices hold near $280,000
The average sales price fell by about $2,700 from July, a decline of roughly 1%. Month-to-month changes in average price can reflect the mix of homes that happened to sell, not just shifts in value. A month with fewer higher-end sales, for example, can pull the average down even if individual home values are unchanged. Buyers and sellers looking for a clearer trend often compare the same month across years or look at several months together.
New construction: a mixed bag
The new-construction side of the market sent mixed signals in August, with sales down, prices higher and homes taking slightly longer to sell.
The number of new homes sold dropped 26% in August, following a 46% fall in July. Those back-to-back declines point to a notable cooling in demand for newly built homes over the late summer.
At the same time, the average price of a new home in Mobile climbed 9.5% to $353,441, with an average price of $182 per square foot. The average time to sell a new home rose slightly, from 87 days to 90.
New homes in the Mobile market sold for about $76,000 more on average than existing homes in August. Builders’ prices reflect the cost of land, materials, labor and financing, and higher-priced new homes can be harder to sell when borrowing costs are elevated. Some builders respond with incentives such as help with closing costs or mortgage rate buydowns, which are worth asking about for buyers shopping new construction.
Why rates and energy costs matter
Praytor pointed to two pressures on the market: interest rates and energy prices.
Mortgage rates directly affect what buyers can afford. Even a modest increase in rates can add significantly to a monthly payment over the life of a 30-year loan, pushing some buyers to lower their price range or wait. Statewide, the average 30-year fixed mortgage rate was 6.54% in July, according to the Alabama Association of Realtors, and the group’s economist noted that rates climbed through that month.
Energy prices hit household budgets from several directions, including gasoline, electricity and the cost of heating and cooling a home. When those bills rise, there is less room in a family’s budget for a mortgage payment, and lenders factor monthly obligations into how much a borrower qualifies for. Along the Gulf Coast, homeowners insurance costs are another significant part of the cost of owning a home.
How Mobile compares with the state
Mobile’s late-summer slowdown contrasts with a stronger statewide picture earlier in the summer. In July, Alabama home sales reached 7,361, the highest level in nearly four years and up nearly 20% from a year earlier, according to the Alabama Association of Realtors. The statewide median price in July was $287,750, and active listings reached a post-pandemic high of about 22,000.
Local markets can diverge from statewide trends, and monthly figures can swing based on the timing of closings. August’s statewide numbers will offer a better sense of whether Mobile’s dip is part of a broader seasonal cooling or specific to the local market.
About the data
The Alabama Center for Real Estate is a research and service unit of the University of Alabama’s Culverhouse College of Business. It publishes monthly housing reports for markets around the state, tracking measures such as home sales, average and median prices, inventory and days on market for both existing homes and new construction. The reports are widely used by Realtors, builders, lenders and local officials to follow market trends.
What it means for buyers and sellers
- Buyers may find a bit more room to negotiate as sales slow, especially on homes that have been listed longer than the 58-day average. Getting preapproved and comparing loan offers from more than one lender can make a difference when rates are elevated.
- Sellers still face a market where homes are selling in about two months on average. Pricing a home in line with recent nearby sales and keeping it in good condition matter more when buyers have more choices.
- New-home shoppers should compare total costs, including builder incentives, closing costs, insurance and energy efficiency, which can affect monthly utility bills.
Looking ahead
Fall is typically a slower season for home sales than spring and summer. September and October data will also reflect the effects of Hurricane Isaias, which made landfall on the Gulf Coast on Oct. 9, as storms can delay closings, inspections and insurance approvals in affected areas. Whether Mobile’s sales stabilize will depend largely on the direction of mortgage rates and household costs in the months ahead.