Alabama home sales in February hold steady compared to 2016

Published On: 03.22.17 |

By: ACRE Research

Alabama home sales in February hold steady compared to 2016

The median sales price for homes in Alabama was up 8 percent in February from a year earlier. (iStock)

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 3,564 units during February were a decrease of 0.4 percent from the same month a year ago. Two more resources to review: Quarterly Report and Annual Report.

Home sales in Alabama rose 4.7 percent in February compared to the prior month, and dipped 0.4 percent from a year ago.

Forecast: February sales were 2 percent or 68 units below the Alabama Center for Real Estate‘s (ACRE) monthly forecast. ACRE’s 2017 sales forecast through February projected 6,788 closed transactions, while the actual sales were 6,976 units.

Supply: The statewide housing inventory during February was 26,014 units, a decrease of 7.6 percent from February 2016 and 37 percent below the February peak in 2008 (41,005 units). There were 7.3 months of housing supply in February (6 months is considered equilibrium), which represents a favorable drop of 7.2 percent from February 2016 (7.9 months).

February inventory increased from January by 1.2 percent. This direction is consistent with historical data that indicate February inventory on average (2012-16) increases from January by 1.5 percent.

Demand: February residential sales increased 4.7 percent from January. This direction is consistent with historical statewide data indicating that February sales on average (2012-16) increase from January by 14 percent. The average days on the market until a listing sold was 140 days, down 11 percent from last year. According to the National Association of Realtors February Existing Home Sales Report, February home sales were 5.4 percent higher than home sales during the same month in 2016. See how Alabama compares with the U.S. residential market by clicking here .

Pricing: The February median sales price increased 8 percent from the same period last year to $137,072. During February, 56 percent of Alabama markets experienced price gains from February 2016. This indicator can fluctuate from month to month due to sampling size of data and seasonal buying patterns. The February median sales price decreased 1 percent from January. This direction contrasts with historical data averages (2012-16) reflecting that the February median sales price increases 0.2 percent from January.

Seeking balance: The metro markets in Alabama representing 70 percent of all sales continued to trend toward greater seller bargaining power with 6.3 months of supply. Outside the metro markets, Alabama’s midsized markets are reporting 7.8 months of supply, while rural areas are reporting 12.2 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: “We expect the housing expansion to continue, albeit at a more moderate pace than last year given continued pressure on affordability,” said Fannie Mae Chief Economist Doug Duncan. “Depressed inventory, particularly in the more affordable segments, will likely constrain sales and push home price gains that outpace income growth. A faster pace of monetary tightening, unless accompanied by a stronger increase in household income, also poses downside risk to housing.”

Click here to generate more graphs from the Alabama February 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.