Sales: Alabama home sales totaling 4,631 units during April were an increase of 7.1 percent from the same month a year ago. Year-to-date home sales for the state through April were up 8.4 percent compared to the same period last year. Two more resources to review: Quarterly Reportand Annual Report.
Forecast: April sales were 8 percent, or 377 units above the Alabama Center for Real Estate‘s (ACRE) monthly forecast. ACRE’s year-to-date sales forecast through April projected 14,732 closed transactions, while the actual sales were 15,861 units, a favorable difference of 7.6 percent.
Supply: The statewide housing inventory during April was 29,406 units, a decrease of 10.6 percent from April 2015 and 31.1 percent below the April peak in 2008 (42,675 units). There was 6.3 months of housing supply in April (6 months is considered equilibrium), which represents a favorable drop of 16.1 percent from April 2015 (7.5 months). April inventory also increased from March by 1.6 percent. This direction contrasts with historical data that indicate April inventory on average (2011-15) increases from March by 6.7 percent.
Demand: April residential sales increased 0.6 percent from March. This direction is consistent with historical statewide data indicating that April sales on average (2011-15) increase from March by 3.7 percent. The average days on market until a listing sold was 147 days, down 7.8 percent from last year. Nationally, April sales were 6 percent above the same period last year. See more details of how Alabama compares to the broader U.S. market here.
Pricing: The April median sales price increased 6 percent from the same period last year to $135,913. During April, 76 percent of local markets experienced price gains from April 2015. This indicator can fluctuate from month to month due to sampling size of data and seasonal buying patterns. The April median sales price increased 3.3 percent from March. This direction is consistent with historical data averages (2011-15) reflecting that the April median sales price increases 3.7 percent from March.
Seeking balance: The metro markets in Alabama representing 70 percent of all sales continued to trend toward greater seller bargaining power with 5.6 months of supply. Outside the metro markets, Alabama’s mid-sized markets are reporting 5.9 months of supply, while rural areas are reporting 9.6 months of supply. With that said, there have been significant improvements from inventory peaks experienced during the recession. The supply of quality inventory in the past has affected sales, according to some boots-on-the-ground professionals.
Industry perspective: “We can partially attribute the sizable gain in April in home-selling optimism both to a correction for last month’s unexpected dip and to typical seasonal strength in housing activity in the spring and summer,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Even after accounting for these factors, continued tight housing supply has led to renewed strength in home price appreciation, making selling a home a more attractive prospect this year in particular. This improved sentiment could provide an extra boost of much-needed supply for the spring selling season.” For the entire report, click here.
The average sales price for homes sold in Alabama during April was $165,962.
On average, homes sold in Alabama during April spent 147 days on the market.
There were 29,406 homes listed for sale in Alabama during April.
The median sales price for homes sold in Alabama during April was $135,913.
There were 6.3 months of supply on the market in Alabama during April.