Alabama residential sales during the third quarter of 2016 continued to improve, up 3.7 percent compared to the same period a year earlier. Total sales of 15,032 units represent the best third quarter since 2007. With that said, third-quarter sales are still 9.8 percent below the quarterly peak established in 2005, when 16,674 units were sold.
Supply: The statewide housing inventory average during the third quarter was 29,884 units, a decrease of 10 percent from the same period in 2015 and 30 percent below the third-quarter peak in 2007 (42,465 units). There were 6 months of housing supply in the third quarter of 2016 (with 8 months considered equilibrium during the third quarter), representing a favorable decline of 13.3 percent from the same period last year. Historical data indicate that the third-quarter inventory-to-sales ratio in 2016 decreased 45 percent from the five-year average (8.7 months) and decreased 1.8 months from the three-year average (7.8 months).
Demand: Historical data indicate that third-quarter sales in 2016 increased by 15 percent from the most recent three-year average (2013-15) and 24 percent from the five-year quarterly average (2011-15).
Pricing: The statewide median sales price during the third quarter was $149,019, an increase of 6.2 percent from the same quarter in 2015. Historical data indicate that the third-quarter median price in 2016 increased by $13,879 from the most recent three-year average and 14 percent from the five-year quarterly average (2011-15).
The Alabama Housing Finance Authority was created in 1980 by Act No. 80-585 of the Alabama Legislature. AHFA is a public corporation and instrument of the State of Alabama dedicated to serving the housing needs of low- and moderate-income Alabamians. AHFA creates housing opportunities for low- and moderate-income Alabamians through the affordable financing of single-family and multifamily housing. Its programs have helped more than 122,000 families find homes they could afford.
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.