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Sales: Alabama home sales totaling 5,279 units during May were an increase of 11.4 percent from the same month a year ago. Year-to-date home sales for the state through May were up 9.1 percent compared to the same period last year. Two more resources to review: Quarterly Report and Annual Report.
There were 5,279 homes sold in Alabama during May.
Forecast: May sales were 11 percent or 526 units above the Alabama Center for Real Estate‘s (ACRE) monthly forecast. ACRE’s year-to-date sales forecast through May projected 19,485 closed transactions, while the actual sales were 21,140 units, a favorable difference of 8.5 percent.
Supply: The statewide housing inventory during May was 30,515 units, a decrease of 8.3 percent from May 2015 and 29.2 percent below the May peak in 2008 (43,113 units). There was 5.8 months of housing supply in May (6 months is considered equilibrium), which represents a favorable drop of 17.7 percent from May 2015 (7 months). May inventory increased from April by 3.8 percent. This direction is consistent with historical data that indicate May inventory on average (2011-15) increases from April by 3.9 percent.
Demand: May residential sales increased 14 percent from April. This direction is consistent with historical statewide data indicating that May sales on average (2011-15) increase from April by 13.5 percent. The average days on market until a listing sold was 140 days, down 9.7 percent from last year. Nationally, May sales were 4.5 percent above the same period last year. See more details of how Alabama compares to the broader U.S. market
here. Pricing: The May median sales price increased 3.2 percent from the same period last year to $145,030. During May, 80 percent of local markets experienced price gains from May 2015. This indicator can fluctuate from month to month due to sampling size of data and seasonal buying patterns. The May median sales price increased 6.8 percent from April. This direction is consistent with historical data averages (2011-15) reflecting that the May median sales price increases 1.4 percent from April.
Seeking balance: The metro markets in Alabama representing 70 percent of all sales continued to trend toward greater seller bargaining power with 5.1 months of supply. Outside the metro markets, Alabama’s mid-sized markets are reporting 6.1 months of supply, while rural areas are reporting 9.6 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 affected sales, according to some boots-on-the-ground professionals.
Industry perspective: “Continued home price appreciation has been squeezing housing affordability, driving a two-year downward trend in the share of consumers who think it’s a good time to buy a home,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “The current low mortgage rate environment has helped ease this pressure, and fewer than half of consumers expect rates to go up in the next year. While the May increase in income growth perceptions could provide further support to prospective home buyers as the spring/summer home-buying season gains momentum, the effect may be muted by May’s discouraging jobs report.” For the full report on home purchase sentiment,
click here. 
The average sales price for homes sold in Alabama during May was $164,995.
On average, homes sold in Alabama during the month of May spent 138 days on the market.
There were 30,515 homes sold in Alabama during May.
The median sales price for homes sold during the month of May in Alabama was $145,030.
There were 5.8 ,months of supply on the market in Alabama during May.
