Sales: There were 6,306 residential sales in Alabama during May, an increase of 8.2 percent from one year ago. Current sales results are 29.1 percent above the five-year monthly average of 4,885 transactions. Two more resources to review: Quarterly Report and Annual Report.
Forecast: May sales were 12 percent or 677 units above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 22,391 residential sales statewide year-to-date, while there were 24,387 actual sales through May.
Supply: The statewide housing inventory during May was 24,720 listings, a decrease of 7.3 percent from May 2017 and 42.4 percent below the 10-year May peak in 2008, when 42,924 units were listed for sale. May inventory increased from April by 2.8 percent. This is consistent with historical data trends indicating that May inventory on average (2013-2017) increases 7.8 percent from April.
Demand: May residential sales increased 13.1 percent from April. This rise in sales is consistent with historical data trends indicating that May sales on average (2013-2017) increase from April by 13.6 percent. The average number of days on the market until a listing sold was 100 days, down 21.9 percent from one year ago, when listings across the state averaged 128 days on the market.
Pricing: The statewide median sales price during May was $165,688, an increase of 10.7 percent from one year ago. The May median sales price increased 6.7 percent from April. This direction is consistent with historical data averages (2013-2017) indicating that the May median sales price on average increases 3 percent from April. During May, 80 percent of Alabama markets experienced price gains from one year ago. This indicator can fluctuate from month to month because of sampling size of data and seasonal buying patterns.
Seeking balance: The metro markets in Alabama representing 70 percent of all sales shifted away from equilibrium (balance between supply and demand) with 3.4 months of housing supply during May. Outside the metro markets, Alabama’s midsize metro areas are reporting 4 months of housing supply, while non-metro areas are reporting 5.9 months of supply. There have been significant improvements from inventory peaks experienced during the recession.
Industry perspective: In both Alabama and the United States, the spring home-buying season has been affected greatly by very low inventory levels. April residential listings decreased 10 percent in the state and decreased 6 percent nationwide from one year ago. Residential sales in Alabama, however, increased 16 percent from one year ago, which is impressive considering the 10 percent drop in inventory. Home price appreciation cooled off somewhat as the statewide median sales price increased 2 percent from one year ago, while it increased 7 percent during the first quarter of the year. Going forward, home sales prices are expected to continue their upward climb during the summer as inventory levels are likely to repeat the declines that were seen during the spring.
Click here to generate more graphs from the Alabama May Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.