Sales: Statewide home sales totaled 6,277 units during June, up 7.6 percent from 5,831 sales in the same month a year earlier. However, June sales were down .5 percent compared to 6,306 sales in May. Results were 25.3 percent above the five-year June average of 5,009 sales. Two more resources to review: Quarterly Report and Annual Report.
For all statewide housing data, click here.
Inventory: Homes listed for sale statewide during June totaled 24,159 units, a decrease of 11 percent from June 2017’s 27,140 units, and a decrease of 2.3 percent from May 2018’s 24,720 units. Statewide markets also experienced year-over-year a decline in months of supply in June. June months of supply totaled 3.8 months, a decrease of 17.3 percent from June 2017’s 4.7 months of supply. June’s months of supply also decreased from May’s 3.9 months of supply.
Pricing: The statewide median sales price in June was $164,987, an increase of .7 percent from one year ago and a decrease of .4 percent from the prior month. This direction is inconsistent with historical data (2013-17) indicating that the June median sales price on average increases from May by 7.3 percent. The homes selling in June spent an average of 100 days on the market (DOM), a decrease of 13.4 percent from 116 days in June 2017, but remaining constant with 100 days in May. This indicator can fluctuate from month to month because of the sampling size of data and seasonal buying patterns.
Forecast: June sales were 447 units, or 7.7 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 5,830 sales for the month, while actual sales were 6,277 units. ACRE forecast a total of 28,761 residential sales statewide year-to-date, while there were 30,664 actual sales through June.
ACRE’s statewide perspective: Residential sales in Alabama continued to grow during the second quarter of 2018. Total residential sales increased 10.4 percent year-over-year from 16,450 to 18,157 closed transactions. Home price appreciation in the state also continues its upward trajectory as the median sales price during the second quarter increased 4.3 percent year-over-year from $155,278 to $161,975. Mirroring national trends, statewide inventory decreased 9.4 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices during the second quarter. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during the second quarter of 2018 spent an average of 98 days on the market, an improvement of 24 days from 2017.
NAR’s national perspective: During June, nationwide sales volume for existing homes decreased 5 percent year-over-year from 600,000 to 570,000 closed transactions. According to Lawrence Yun, chief economist for the National Association of Realtors, “there continues to be a mismatch since the spring between the growing level of home buyer demand in most of the country in relation to the actual pace of home sales, which are declining. The root cause is without a doubt the severe housing shortage that is not releasing its grip on the nation’s housing market. What is for sale in most areas is going under contract very fast, and in many cases has multiple offers. This dynamic is keeping home price growth elevated, pricing out would-be buyers and ultimately slowing sales.”
Click here to view the entire monthly report.
The Alabama Residential Monthly Report is developed in conjunction with the Alabama Association of Realtors and its local associations.