Tuscaloosa April home sales up 26 percent compared to same period last year
Tuscaloosa home sales and median sales prices were up in April from a year earlier. (File)
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Sales: According to the Tuscaloosa MLS, Tuscaloosa-area residential sales totaled 212 units during April, up 26.2 percent from the same period last year. The April average for sales from 2011 to 2015 was 159 units. Two more resources to review: Quarterly Report and Annual Report.
For all of the Tuscaloosa area’s housing data, click here.
Forecast: April results were 13 units or 6.9 percent above the Alabama Center for Real Estate’s monthly forecast. ACRE’s year-to-date sales forecast through April projected 674 closed transactions, while the actual sales were 724 units, a favorable difference of 7.4 percent.
There were 212 units sold in Tuscaloosa during April.
Supply: Tuscaloosa April housing inventory totaled 1,187 units, a decrease of 21.2 percent from April 2015. April inventory dipped 4.7 percent from March. Historical data indicate that April inventory on average (2011-15) increases from March by 1.8 percent. Inventory has now declined 39.6 percent from the April peak (1,964 units) reached in 2008.
Seeking balance: The inventory-to-sales ratio declined 37.6 percent year-over-year during April to 5.6 months. Restated, at the April sales pace, it would take 5.6 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand on a non-seasonally adjusted basis) is considered to be approximately 6 months during April.
Demand: April residential sales were 6.2 percent below the prior month. The decrease contrasts with seasonal buying patterns and historical data indicating that April sales on average (2011-15) increase from March by 4.1 percent. Existing single-family home sales accounted for 82 percent of total sales (down from 87 percent in April 2015), while 10 percent were new home sales (up from 7 percent during April 2015) and 6 percent were condo buyers (up from 5 percent in April 2015).
Pricing: The Tuscaloosa median sales price in April was $158,648, an increase of 3.7 percent compared to April 2015. The median sales price was down 0.5 percent from March’s price. Historical data (2011-15) indicates that the median sales price in April typically increases from March by 3.2 percent. It should also be noted that differing sample size (number of residential sales of comparative months) can contribute to statistical volatility including pricing. Consult with a real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood.
Industry perspective: “We can partially attribute the sizable gain in April in home-selling optimism both to a correction for last month’s unexpected dip and to typical seasonal strength in housing activity in the spring and summer,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Even after accounting for these factors, continued tight housing supply has led to renewed strength in home price appreciation, making selling a home a more attractive prospect this year in particular. This improved sentiment could provide an extra boost of much-needed supply for the spring selling season.” For the entire report, click here.
The Tuscaloosa Residential Monthly Report is developed in conjunction with the Tuscaloosa Association of Realtors to better serve West Alabama consumers.
