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 3,968 units during November were an increase of 24.6 percent from the same month a year ago. Year-to-date home sales for the state through November were up 7.7 percent compared to the same period last year. Two more resources to review: Quarterly Report and Annual Report.

Year-to-date home sales in Alabama through November rose 7.7 percent over the same period last year.

Forecast: November sales were 14 percent or 486 units above the Alabama Center for Real Estate‘s (ACRE) monthly forecast. ACRE’s year-to-date sales forecast through November projected 45,419 closed transactions, while the actual sales were 49,717 units, a favorable difference of 9 percent.

Supply: The statewide housing inventory during November was 27,570 units, a decrease of 9 percent from November 2015 and 33 percent below the November peak in 2007 (41,059 units). There were 6.9 months of housing supply in November (6 months is considered equilibrium), which represents a favorable drop of 27 percent from November 2015 (9.6 months).

November inventory decreased from October by 3.3 percent. This direction contrasts with historical data that indicate November inventory on average (2011-15) increases from October by 1.9 percent.

Seeking balance: The metro markets in Alabama representing 70 percent of all sales continued to trend toward greater seller bargaining power with 6.1 months of supply. Outside the metro markets, Alabama’s midsized markets are reporting 7.4 months of supply, while rural areas are reporting 10.4 months of supply. 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: “The HPSI (home purchase sentiment index) fell in October for the third straight month from its record high in July, reaching the lowest level since March. Recent erosion in sentiment likely reflects, in part, enhanced uncertainty facing consumers today,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Since July, more consumers, on net, have steadily expected mortgage rates to rise and home price appreciation to moderate. Furthermore, consumers’ perception of their income over the past year deteriorated sharply in October to the worst showing since early 2013, weighing on the index. However, this component of the HPSI is volatile from month to month, and the firming trend in wage gains from the October jobs report, if sustained, may foreshadow an improving view in the near future.”

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

The Alabama Residential Monthly Report is developed in conjunction with the Alabama Association of Realtors and its local associations.