Click here to view or print the entire monthly report compliments of the Alabama Center for Real Estate Corporate Cabinet. Join the Center mailing list here.

Sales: Alabama home sales totaling 3,811 units during December were an increase of 9.6 percent from the same month a year ago. Sales for the month continued to trend upward for the state, which bottomed out at 2,632 sales during December 2008. Sales are 26 percent above the December five-year sales average (2010-14) of 3,016 units. Year-to-date sales through December were up 12 percent from 2014. Two more resources to review: Quarterly Report and Annual Report.

The median sales price in Alabama during December rose to $136,131.

Forecast: December sales were 10 percent, or 354 units above our monthly forecast. Alabama Center for Real Estate‘s (ACRE) year-to-date sales forecast through December projected 47,090 closed transactions while the actual sales were 49,966 units, a 6 percent rise.

Supply: The statewide housing inventory during December was 28,850 units, a decrease of 7.7 percent from December 2014 and 27.5 percent below the December peak in 2007 (39,771 units). There was 7.6 months of housing supply in December (6 months is considered equilibrium), which represents a favorable drop of 15.8 percent from December 2014 (9.0 months). December inventory also decreased from November by 5.2 percent. This direction is consistent with historical data that indicates December inventory on average (2010-14) decreases from November by 4.6 percent.

Demand: December residential sales increased 19.7 percent from the prior month. This direction is consistent with historical statewide data indicating that December sales on average (2010-14) increase from November by 7.4 percent. The average Days on Market until a listing sold was 142 days, down 10.2 percent from last year. Nationally, December sales were 7.7 percent above the same period last year, a rebound from a slip in November. See more details of how Alabama compares to the broader US market here.

Pricing: The December median sales price increased 5.3 percent from the same period last year. During December, 56 percent, of local markets experienced price gains from December 2014. Keep in mind that this indicator can fluctuate from month to month due to sampling size of data and seasonal buying patterns. The December median sales price increased 2.4 percent from the prior month. This direction is consistent with historical data averages (2010-14) reflecting that the December median sales price increases 1.8 percent from November.

Seeking Balance: The metro markets in Alabama representing 70 percent of all sales continued to trend toward greater seller bargaining power with 6.5 months of supply. Outside the metro markets, Alabama’s mid-sized markets are reporting 8.5 months of supply, while rural areas are reporting 12.5 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: “Consumers ended the year on an improved note with regard to their income, job security, and overall economic outlook. This more positive consumer sentiment brought the HPSI up a few points, moving the index up for all of 2015,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Brightening economic prospects, if sustained, should stimulate demand for homeownership. However, continuing upward pressure on rental prices and constrained housing supply, particularly for starter homes, may mean prospective first-time homebuyers could face affordability constraints.” For full report click here.

The average sales price for homes sold in Alabama during December was $157,323.

On average, homes sold in Alabama during December spent 131 days on the market.

Inventory dipped favorably in Alabama during December to 27,289 homes listed.

The median sales price in Alabama during December rose to $136,131.

There was 7.4 months of supply in Alabama during December.

Home sales continued in an upward trajectory for Alabama during the month of December.