The August national existing home sales report came up short of industry expectations, but year-over-year, Alabama’s home sales improved during the month.

Inventory dropped across the board in Alabama during September to 32,491 units, a 1.5 percent dip from last September. Months of supply dropped from 14.6 in 2010 to 7.0 last month.

The recently-released National Association of Realtors September home sales report painted a much brighter picture for the industry.

Alabama, like the previous month, had positive gains, year-over-year, in most of the major indicators.

Here’s a snapshot of what Alabama’s housing market looked like in September.

• Total residential sales: There were 4,618 existing units sold in Alabama during the month of September, with 22 of the 25 (88 percent) reporting associations noting favorable gains from September 2014. This was 16.7 percent higher than last September’s total (3,957) and 37.4 percent higher than the five-year average from 2010-14 (3,360). This was the best month of September in Alabama since the state hit the 4,600 mark in September 2006. Year-to-date sales in September were 14 percent higher than the previous year.
• Home prices: Home prices took a 3.4 percent dip from the month of August, but year-over-year, Alabama’s median sales price ($137,884) improved by 6.5 percent over last year. It was also an 11.2 percent improvement over the five-year average from 2010-14 ($124,038). This price also established a new peak for Alabama, which had previously been below $135,000, reached back in 2007. The year-to-date median sales price also improved 15 percent over the prior September.
• Days on the Market: The average number of days a house was on the market dropped across the board in September to 140, compared to 149 in August and 148 the previous September. It was also 9.3 percent lower than the five-year average (154 days) from 2010-14. Year-to-date, the average days on the market for a home is 153, compared to 156 last September.
• Inventory: The total homes listed for sale also dropped across the board during September, bringing inventory for the state down to 32,491 units, a 1.5 percent dip from last September and a 2.2 percent drop from the prior month. This was also 8.3 percent below the September five-year average of 35,428 units. Months of supply dropped 15.6 percent from last September (8.3) to 7.0. Restated, at the September pace, it would take 7.0 months for the current supply to leave the market. This is nearly half of the September peak of 14.6 set in 2010.

To read Alabama’s September sales report, click here. 

Bryan Davis is the research/media Coordinator for the Alabama Center for Real Estate housed within the Culverhouse College of Commerce at the University of Alabama. He can be reached at 205-348-5416 or at bkdavis@culverhouse.ua.edu.

The Alabama Center for Real Estate’s core purpose is to advance the real estate industry in Alabama by providing relevant resources in the areas of research, education and outreach.

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