Sales: There were 5,584 residential sales in Alabama during April, an increase of 16.3 percent from one year ago. Current sales results are 30.1 percent above the five-year monthly average of 4,291 transactions. Two more resources to review: Quarterly Report and Annual Report.
Forecast: April sales were 11.8 percent or 593 units above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 17,302 residential sales statewide year-to-date, while there were 18,801 actual sales through April.
Supply: The statewide housing inventory during April was 24,245 listings, a decrease of 10 percent from April 2017 and 43.2 percent below the 10-year April peak in 2008, when 42,675 units were listed for sale. April inventory increased from March by 1.3 percent. This is consistent with historical data trends indicating that April inventory on average (2013-2017) increases 1.7 percent from March.
Demand: April residential sales increased 4.4 percent from March. This rise in sales is consistent with historical data trends indicating that April sales on average (2013-2017) increase from March by 1.8 percent. The average number of days on the market until a listing sold was 102 days, down 17.3 percent from one year ago, when listings across the state averaged 124 days on the market.
Pricing: The statewide median sales price during April was $152,016, an increase of 1.7 percent from one year ago. The April median sales price decreased 3.2 percent from March. This direction is inconsistent with historical data averages (2013-2017) indicating that the April median sales price on average increases 3.1 percent from March. During April, 60 percent of Alabama markets experienced price gains from one year ago. This indicator can fluctuate from month to month because of sampling size of data and seasonal buying patterns.
Seeking balance: The metro markets in Alabama representing 70 percent of all sales shifted away from equilibrium (balance between supply and demand) with 3.7 months of housing supply during April. Outside the metro markets, Alabama’s midsize metro areas are reporting 4.5 months of housing supply, while non-metro areas are reporting 6.6 months of supply. There have been significant improvements from inventory peaks experienced during the recession.
Industry perspective: Statewide, residential real estate sales continued to show growth during the first quarter of 2018 as they grew 2.4 percent from the first quarter of 2017. Low inventory levels, however, played a large role in driving prices upward. During the first quarter of the year, the statewide median sales price increased 7.1 percent from one year ago. Although good news for sellers, this price growth, combined with rising interest rates, could lead to affordability issues for buyers in today’s markets.
*ACRE receives new construction sales data from the following counties/areas: Baldwin County, Birmingham metro area, Calhoun County, Huntsville metro area, Lee County, Mobile metro area, Montgomery metro area, Tuscaloosa County and the Wiregrass Region. Combined, these counties/areas represent +/- 70 percent of Alabama’s total population.
Click here to generate more graphs from the Alabama April Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.