Sales: Statewide home sales totaled 5,729 units during July, up 7.9 percent from 5,312 sales in the same month a year earlier. However, July sales were down 8.7 percent compared to 6,277 sales in June. Results were 18.1 percent above the five-year July average of 4,848 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 July totaled 24,220 units, a decrease of 12.1 percent from July 2017’s 27,545 units, and an increase of .3 percent from June 2018’s 24,159 units. Statewide markets also experienced year-over-year a decline in months of supply. July months of supply totaled 4.2 months, a decrease of 18.5 percent from July 2017’s 5.2 months of supply. However, July’s months of supply increased from June’s 3.8 months of supply.

Pricing: The statewide median sales price in July was $169,727, an increase of 5.9 percent from one year ago and an increase of 2.9 percent from the prior month. This direction is inconsistent with historical data (2013-17) indicating that the July median sales price on average decreases from June by 1.3 percent. The homes selling in July spent an average of 86 days on the market (DOM), a decrease of 22.8 percent from 111 days in July 2017, and a 14 percent decrease from 100 days in June. This indicator can fluctuate from month to month because of the sampling size of data and seasonal buying patterns.

Forecast: July sales were 118 units, or 2.1 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 5,611 sales for the month, while actual sales were 5,729 units. ACRE forecast a total of 34,372 residential sales statewide year-to-date, while there were 36,393 actual sales through July.

ACRE’s statewide perspective:  Residential sales in Alabama continued to grow during the late summer buying months. Total residential sales during July increased 7.9 percent year-over-year from 5,312 to 5,729 closed transactions. Year-to-date through July, statewide residential sales are up 7.1 percent from 33,929 one year ago to 36,354 currently. Home price appreciation in the state also continues its upward trajectory. The median sales price in July increased 5.9 percent from $160,279 to $169,727 while the year-to-date median sales price is up 5.3 percent from 2017. Mirroring national trends, statewide inventory decreased 12.1 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices during July. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during July spent an average of 86 days on the market, an improvement of 25 days from 2017.

NAR’s national perspective:  During July, nationwide sales volume for existing homes increased 1.8 percent year-over-year from 513,000 to 522,000 closed transactions. According to Lawrence Yun, chief economist for the National Association of Realtors, “Continuous solid gains in home prices have now steadily reduced demand. Led by a notable decrease in closings in the Northeast, existing home sales trailed off again last month, sliding to their slowest pace since February 2016 at 5.21 million (seasonally adjusted annual rate). Too many would-be buyers are either being priced out, or are deciding to postpone their search until more homes in their price range come onto the market.”

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.