Spanish Fort, AL

The upcoming expiration of the first-time homebuyer tax credit likely lead to a reduction in home sales in October on the Eastern Shore of the Mobile, Alabama, metro area.

Home sales fell from 87 in September to 59 in October in Spanish Fort, Daphne and Fairhope.

The first-time homebuyer tax credit of $8,000 was set to expire Nov. 30 and buyers apparently wanted to make that deadline with plenty of time to spare. Other buyers may have been waiting to see what would happen next.

At this writing, the U.S. Senate is poised to extend that credit through April 2010 and expand it to people with a $6,500 credit to people who have owned their home at least 5 of the last 8 years (income limits apply). With Senate passage, the bill is expected to be expedited through the house and to President Obama's desk for signing.

Pending sales have improved slightly from 128 at the first of September to 140.

Here are the stats for the Eastern Shore:
Total houses for sale: 1,235
Spanish Fort: 150
Daphne: 400
Fairhope: 560
Lake Forest: 125

Pending sales
Total: 140 (38% new construction)
Spanish Fort: 24 (including 15 new homes)
Daphne: 60 (including 32 new homes)
Fairhope: 37 (including 6 new homes
Lake Forest: 19 (none new)


Closed sales for October 2009
Total: 59
Average sales price: $204,107, down from $233,867 in September and $263,997 in August.
Median sales price: $179,900, down from $184,900in September.
List to sale percentage: 96.82%, an improvement over 96.19% in September
Spanish Fort: 6
Daphne: 21
Fairhope: 24
Lake Forest: 8

(Data from the Baldwin County Multiple Listing Service)

If I can help you with any of your home needs, please feel free to call or email.

Janet English

251 591-2411

A year after the 2008 financial meltdown, let's take stock of the correction in home prices on the Eastern Shore.

■ The number of homes sold in the 3rd quarter of 2009 was only 6% behind home sales in the 3rd quarter of 2008.

■ Average sales price this past quarter was $243,176 - 19% lower than the average sales price of $298,947 a year ago.

The first statistic shows that the market is stabilizing in one respect.

A year ago, home sales between Spanish Fort and Point Clear fell off a cliff. Last summer 128 homes sold in June and another 135 in July. Then came August 2008 with only 84 sales, a 40 percent drop in the number of homes sold.

That we are only 6% behind the third quarter of 2008 demonstrates the difficult and momentous shift in attitudes toward home prices. Because home sales involve so many people - lenders, insurers, builders and their suppliers, tradesmen, Realtors, home inspectors, appraisers, movers, furnishers, etc. - they are essential to stable economy, despite the falling prices.

Locally, home prices continue to decline. Nationally, the rate of decline slowed for a sixth straight month, according to the S&P/Case Shiller 20-city home price index. Looking at these 20 major metro markets, the index noted a better-than-expected 13.3% decline compared to a year ago. David M. Blitzer, chairman of the index committee at Standard & Poor's, said: "These figures continue to support an indication of stabilization in national real estate values."

On the Eastern Shore, 569 price reductions were made on homes in the 3rd quarter; there are 1,209 properties listed.

On to the stats:

Overall, the pace of sales continues to improve, from 157 sales in the 1st quarter, to 207 in the 2nd quarter to 248 in the 3rd quarter, including 29 foreclosures or short sales (pre-foreclosures). The average time it took to sell was 179 days, a figured skewed by the fact that many properties had already gone through a previous listing.

Fairhope/Point Clear: 78 homes sold, compared with 98 a year ago this time and 70 during the 2nd quarter 2009. Average sales price was $300,699, down from $359,262 a year ago and but up from $284,033 in the 2nd quarter. (The sales of three homes over $1.7 million helped boost this quarter's average.) Average time it took to sell: 202 days. There are 562 houses on the market here.

Daphne/Montrose: 107 homes sold compared with 105 sales a year ago, and up from 73 sales the 2nd quarter. Average price was $231,746, down from $289,832 a year ago and $243,600 in the 2nd quarter. Average days on market: 167. There are 373 homes for sale.

Lake Forest: 28 homes sold, exactly the same as a year ago and up slightly from the 25 that sold in the 2nd quarter. Average sales price was $150,107, compared to $153,965 a year ago and $145,680 in the 2nd quarter. Average days on market: 137. There are 134 homes for sale here.

Spanish Fort: 36 homes sold, compared with 34 a year ago and 39 in the 2nd quarter. Average price was $224,392 vs. $272,853 a year ago and $255,977 in the 2nd quarter. Market time averaged 178 days. There are 140 homes for sale.

Home sales in the Eastern Shore of the Mobile, Alabama, metro area improved ever so slightly in September, with 87 sales, compared to 82 sales in August.

Pending sales dropped from 158 during the first week of September to 128 during the first week of October in Spanish Fort, Daphne and Fairhope/Point Clear. In typical years - and this is not a typical year - home sales slow during the back-to-school season and pick up again in late October. Whether there will be a last minute rush of buyers trying to qualify for the $8,000 first-time home buyer tax credit that expires Nov. 30, is anybody's guess.

Here are the stats for the Eastern Shore:
Total houses for sale: 1,211
Spanish Fort: 139
Daphne: 375
Fairhope: 569
Lake Forest: 123

Pending sales
Total: 128
Spanish Fort: 19
Daphne: 60
Fairhope: 35
Lake Forest: 14


Closed sales for September 2009
Total: 87
Average sales price: $233,867, down from $263,997 in August.
Median sales price: $184,900, down from $187,450 in July
List to sale percentage: 96.19%
Spanish Fort: 13
Daphne: 46
Fairhope: 21
Lake Forest: 7

(Data from the Baldwin County Multiple Listing Service)

A year ago, home sales on the Eastern Shore fell off a cliff. Then they tumbled even further, apparently hitting bottom in the early spring.

But that month - August 2008 - showed a breath-taking 40 percent decline in the number of houses sold between Spanish Fort and Point Clear on the Eastern Shore the Mobile Metro area. To demonstrate: 128 homes sold in June 2008 and another 135 sold in July. Then came August, 2008, with only 84 sales.

Even with anemic sales, the average sales price was $303,576 and the median was $249,250.

Now, a year later, the average sales price was $263,997 and the median was $187,450, a reflection of the extreme correction in housing prices, as well as what type of house is selling.

But a year ago, only a little more than a hundred houses were under contract. Now, 158 are in the process of closing, a 34 percent increase over the year, and certainly a hopeful sign.

Total sales are virtually unchanged from a year ago with 82 closed last month.

Still, more than 200 price adjustments were made by homeowners last month.

Foreclosures and short sales (distressed homeowners who owe more than their houses are now worth) represent 4% of listed properties, yet they are 15% of August ‘09 sales and 10% of houses under contract. The lure of a possible deal is as strong as ever, putting price pressure on everyone who is trying to sell.

Here are the stats for the Eastern Shore in August, 2009:
Total houses for sale: 1,195
Spanish Fort: 137
Daphne: 366
Fairhope: 569
Lake Forest: 123

Pending sales
Total: 158
Spanish Fort: 26
Daphne: 75
Fairhope: 41
Lake Forest: 16


Closed sales for August 2009
Total: 82
Average sales price: $263,997, up from $262,616 in July.
Median sales price: $187,450, down from $204,500 in July
List to sale percentage: 96.56%
Spanish Fort: 11
Daphne: 38
Fairhope: 23
Lake Forest: 10

(Data from the Baldwin County Multiple Listing Service)

Spanish Fort, Alabama continues to grow with new residential developments while maintaining its historic Southern charm. Its local people bustle from place to place, store to store, and eager to share a story, or two.

Spanish Fort is growing towards future prominence as "the major" town within Baldwin County, part of the Eastern Shore, and located only minutes from downtown Mobile by traveling west on I-10, across the "Bay-Way."

Spanish Fort has several newer residential developments, such as, "Garrison Ridge," about two years old. Most of the homes within "Garrison Ridge" have gross living areas between 3,213 square feet and 3,703 square feet, three bathrooms and four bedrooms according to online records. Building lots within this development will primarily range from $62,500 to $69,900.

"Garrison Ridge" is located about 1/2 mile north of U. S. Highway 31 and along the western side of Highway 225, near Spanish Fort's town center. "Garrison Ridge" sits on an area which once was the center of the Union lines during the Battle of Spanish Fort and one of the final battles of the American Civil War in the Spring of 1865. Before the development could begin, a team of archaeologists from the University of South Alabama spent time salvaging for information from the 57+- acre site.

The Certified Residential FHA Appraisers within Baldwin County also suggest checking into these other Spanish Fort subdivisions: Bromley Oaks, Cambron, Churchill, Delta Woods, The Hammock At Blakeley, Saluda Ridge, Spanish Fort Estates, Stillwater, Stonebrook, Tanager, Westminster Gates, Whisper Woods, and Wilkins Creek Estates.

If you require more information about Certified Residential and FHA Appraisal Reports within Spanish Fort and other communities (Daphne, Fairhope, Malbis, Montrose, Point Clear, etc.) within Baldwin County, Alabama, please contact Al Cheney at (251) 533-2424 or write to Cheney Appraisal Services, Post Office Box 7907, Spanish Fort, Alabama 36577-7907.

Also, click on this web site link, http://www.MobileAlabamaFHARealEstateAppraisers.com, for other articles and informative topics about our Mobile Bay Metro Area.