Click here to view or print the entire October report compliments of the ACRE Corporate Cabinet. Join the Center mailing list HERE.
Sales: Alabama residential sales totaling 3,889 units during October reflect an increase of 2.7 percent growth from the same period a year earlier. Sales for the month continue to trend upward for the state, which bottomed out at 2,467 sales during October 2010, but has improved each year since. Sales are 22.3 percent above the October five-year sales average (2010-14) of 3,179 units. Year-to-date sales through October are up 13 percent from 2014. Two more resources to review: Quarterly Report and Annual Report
Forecast: October sales were 4 percent or 141 units above our monthly forecast. Alabama Center for Real Estate‘s (ACRE) year-to-date sales forecast through October projected 40,253 closed transactions while the actual sales were 42,974 units, a 7 percent rise.
Year-to-date, Alabama home sales are 13 percent higher than the same period during 2014.
Supply: The statewide housing inventory during October was 31,573 units, a decrease of 4 percent from October 2014 and 25 percent below the October peak in 2007 (42,039 units). There was 8.1 months of housing supply in October (6 months is considered equilibrium), which represents a favorable drop of 6.5 percent from October 2014 (8.7 months). October inventory also decreased from September by 3 percent. This direction is right in line with historical data that indicates October inventory on average (2010-14) decreases from September by 1.3 percent.
Demand: October residential sales decreased 16 percent from the prior month. This direction is consistent with historical statewide data indicating that October sales on average (2010-14) decrease from September by 5.5 percent. The average Days on Market until a listing sold was 139 days, 3 percent faster than last year. Nationally, October sales were 4 percent above the same period last year. See more details of how Alabama compares to the broader US market
here.
Pricing: The October median sales price increased 5.3 percent from the same period last year. During October, 15 of 25, or 60 percent, of local markets experienced price gains from October 2014. Keep in mind that this indicator can fluctuate from month to month due to sampling size of data and seasonal buying patterns. The October median sales price increased 1 percent from the prior month. This direction is consistent with historical data averages (2010-14) reflecting that the October median sales price increases 1.2 percent from September.
Seeking Balance: The metro markets in Alabama representing 70 percent of all sales continued to trend toward greater seller bargaining power with 7.2 months of supply. Outside the metro markets, Alabama’s mid-sized markets are reporting 8.8 months of supply, while rural areas are reporting 11.6 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 impacted sales, according to some local professionals with boots on the ground.
National Industry Perspective: “Despite recent headwinds, which likely will slow economic growth compared to the first half of 2015, we see positive trends for consumer spending and housing heading into the fourth quarter,” said Fannie Mae Chief Economist Doug Duncan. “Strong home price gains should help drive an increase in household net worth again in the third quarter and, combined with low gasoline prices and mortgage rates, should support strong consumer spending throughout the rest of the year.” To read the full report,
click here. 
The October average sales price for the state continues to rise, hitting $162,441 in October, a 4 percent rise over last year.
Homes spent an average of 139 days on the market in Alabama during October, 3 percent slower than last year.
Inventory dropped slightly to 31,573 during October 2015.
The state’s median sales price during October rose as well by 5.3 percent in 2015.
The months of supply equilibrium is 6.0 for the state during the month of October, but 8.1 during October 2015 was a 6.5 percent improvement over last year.
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 Residential Monthly Report is work product developed in conjunction with the Alabama Association of Realtors and its local associations. ACRE was founded by legislative act in 1996 due to the efforts of the Alabama Real Estate Commission, the Alabama Association of Realtors and the Office of the Dean, UA Culverhouse College of Commerce to serve the State of Alabama real estate industry and the consumers it serves. ACRE is not a state-funded entity, rather its operates in part because of the support of Alabama real estate licensees and goodwill & generosity of the ACRE Corporate Cabinet and our statewide ACRE Partners. The Alabama Association of Realtors serves as the voice of the real estate industry in Alabama. AAR is the largest statewide organization of real estate professionals who sale, lease, appraise, and develop residential, commercial, rural and resort properties. 
