Click here to view or print the full quarterly report compliments of the Alabama Housing Finance Authority.

Alabama residential sales during the third quarter of 2015 continued to improve, up 15.4 percent compared to the same period a year ago. Total sales of 14,504 units represent the best third quarter since 2007 (15,000 units). With that said, third quarter sales are still 13 percent below the quarterly peak in 2005 when 16,674 units were sold.

Total sales in Alabama during the third quarter were up 15.4 percent over the same period last year and up 32.8 percent above the five-year average of 10,920 established between 2010-14.

Supply: The statewide housing inventory average during the third quarter was 33,195 units, a decrease of 7.6 percent from the same period in 2014 and 21.8 percent below the third quarter peak in 2007 (42,465 units). There was 6.9 months of housing supply (6 months considered equilibrium during the third quarter) in the third quarter 2015, representing a favorable decline of 13.9 percent from the same period last year. Historical data indicates that the third quarter inventory-to-sales ratio in 2015 decreased by 32.1 percent from the five-year average, and decreased by 20.6 percent from the three-year average. This represents welcome news for the market as it continues to trend toward a more balanced market.

Demand: Historical data indicates that the third quarter inventory-to-sales ratio in 2015 decreased by 32.1 percent from the five-year average, and decreased by 20.6 percent from the three-year average. This represents welcome news for the market as it continues to trend toward a more balanced market.

Pricing: The statewide median sales price during the third quarter was $140,206, an increase of 2.3 percent from the same quarter in 2014. Historical data indicates that the third quarter median sales price in 2015 is 10.1% higher than the five-year average, and 7.5% higher than the three-year average.

Alabama homes spent an average of 145 days on the market during the third quarter, down 6 percent from the same period last year.

The average sales price in Alabama during the third quarter has been climbing over the past five years, reading $165,364 in 2015.

There was 6.9 months of inventory in Alabama during the third quarter, down favorably from 8.0 months of inventory a year ago.

The median sales price in Alabama during the third quarter has also been on the rise over the past five years, establishing a new peak of $140,206 for the quarter in 2015.

Inventory favorably dropped by 0.9 percent from third quarter 2014 in Alabama this year. The third quarter inventory was also 7.6 percent below the five-year average of 42,465.

The Alabama Housing Finance Authority (AHFA) was created in 1980 by Act No. 80-585 of the Alabama Legislature. AHFA is a public corporation and instrumentality of the State of Alabama dedicated to serving the housing needs of low- and moderate-income Alabamians. AHFA creates housing opportunities for low- and moderate-income Alabamians through the affordable financing of single- and multifamily housing. Our programs have helped more than 122,000 families find homes they could afford.

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.