Click here to view or print the entire monthly report compliments of the ACRE Corporate Cabinet.

Sales: According to the Tuscaloosa MLS, Tuscaloosa-area residential sales totaled 229 units during August, up 26 percent from the same period last year. The August average for sales from 2011 to 2015 was 180 units. Year-to-date sales of 1,911 units represents an 18 percent rise from the same period last year. Two more resources to review: Quarterly Report and Annual Report.

For all of the Tuscaloosa area’s housing data, click here. 

Forecast: August results were nine units or 4 percent below the Alabama Center for Real Estate’s monthly forecast. ACRE’s year-to-date sales forecast through August projected 1,618 closed transactions, while the actual sales were 1,723 units, a favorable difference of 6 percent.

Year-to-date home sales through August in Tuscaloosa rose 18 percent over the same period last year.

Supply: Tuscaloosa August housing inventory totaled 1,175 units, a decrease of 12.7 percent from August 2015. August inventory remained unchanged compared to July. Historical data indicate that August inventory on average (2011-15) decreases from July by 3 percent. Inventory has now declined 40 percent from the August peak (1,947 units) reached in 2008.

Seeking balance: The inventory-to-sales ratio declined 30.6 percent year-over-year during August to 5.1 months. Restated, at the August sales pace, it would take 5.1 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 August.

Demand: August residential sales were 8.4 percent below the prior month. The decrease is consistent with seasonal buying patterns and historical data indicating that August sales on average (2011-15) decrease from July by 9.3 percent. Existing single-family home sales accounted for 80 percent of total sales (down from 85 percent in August 2015), while 9 percent were new home sales (down from 10 percent) and 11 percent were condo buyers (up from 5 percent).

Pricing: The Tuscaloosa median sales price in August was $146,000, a decrease of 13 percent compared to August 2015. The median sales price was also down 14 percent from July’s price. Historical data (2011-15) indicate that the median sales price in August typically increases from July by 1 percent. It should 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: “Consumers have a fairly optimistic 12-month outlook on housing at the end of the summer home-buying season, supported by increased job confidence and more favorable expectations regarding their personal financial situations compared with this time last year,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “The return to a slight upward trend in the HPSI during the spring and summer is, thus far, in line with our forecast, which calls for 4 percent growth in home sales in 2016 to the best level since 2006 and continued improvement for 2017.” For the full report, click here.

Click here to generate more graphs from the Tuscaloosa August Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply. 

The Tuscaloosa Residential Monthly Report is developed in conjunction with the Tuscaloosa Association of Realtors to better serve West Alabama consumers.