Tuscaloosa homes selling 24 days faster on average compared to one year ago

Tuscaloosa homes selling 24 days faster on average compared to one year ago
The Tuscaloosa median home sales price in July was $170,800. (Stuart Norton/ACRE)

Sales: According to the Tuscaloosa Multiple Listing Service, Tuscaloosa-area residential sales totaled 249 units during July, down 0.8 percent from 251 sales in the same month a year earlier. July sales were down 22.2 percent compared to 320 sales in June. Results were 7.8 percent above the five-year July average of 231 sales. Two more resources to review: Quarterly Report and Annual Report.

For all Tuscaloosa-area home sales data, click here.

Inventory: Total homes listed for sale in the Tuscaloosa area during July were 862 units, a decrease of 10 percent from July 2017’s 964 units and an increase of 1.1 percent from June 2018’s 853 units. July months of supply totaled 3.5 months, a decrease  from July 2017’s 3.8 months of supply. However, July’s months of supply increased from  June’s 2.7 months of supply.

Pricing: The Tuscaloosa median sales price in July was $170,800, a decrease of 5.1 percent from one year ago and a decrease of 5.1 percent from the prior month. This direction is consistent with historical data (2013-17) indicating that the July median sales price on average decreases from June by .7 percent. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood. The average number of days on the market (DOM) for homes sold during July was 48 days, a decrease of 33.3 percent from 72 days in July 2017, and a decrease of 20 percent from 60 days in June.

Forecast: July sales were 41 units, or 14.2 percent, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 290 sales for the month, while actual sales were 249 units. ACRE forecast a total of 1,655 residential sales in the Tuscaloosa area year-to-date, while there were 1,647 actual sales through July.

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 Tuscaloosa Residential Monthly Report is developed in conjunction with the Tuscaloosa Association of Realtors to better serve West Alabama consumers.

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