Alabama statewide August home sales up 4 percent compared to one year ago

Alabama statewide August home sales up 4 percent compared to one year ago
The statewide median home sales price in August was $162,711, an increase of 2.9 percent from one year ago. (Getty Images)

Sales: Statewide home sales totaled 5,862 units during August, up 3.5 percent from 5,664 sales in the same month a year earlier. August sales were up 2.5 percent compared to 5,722 sales in July. Results were 22.6 percent above the five-year August average of 4,782 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 August totaled 24,165 units, a decrease of 11.4 percent from August 2017’s 27,270 units, and a decrease of .4 percent from July 2018’s 24,273 units. Statewide markets also experienced year-over-year a decline in months of supply. August’s months of supply totaled 4.1 months, a decrease of 14.4 percent from August 2017’s 4.8 months of supply. August’s months of supply also decreased from the previous month’s total of 4.2.

Pricing: The statewide median sales price in August was $162,711, an increase of 2.9 percent from one year ago and a decrease of 3.8 percent from the prior month. This direction is consistent with historical data (2013-17) indicating that the August median sales price on average decreases from July by 2.1 percent. The homes selling in August spent an average of 95 days on the market (DOM), a decrease of 18.5 percent from 117 days in August 2017, and a 10.2 percent increase from 86 days in July. This indicator can fluctuate from month to month because of the sampling size of data and seasonal buying patterns.

Forecast: August sales were 324 units, or 5.9 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 5,538 sales for the month, while actual sales were 5,862 units. ACRE forecast a total of 39,910 residential sales statewide year-to-date, while there were 42,252 actual sales through August.

ACRE’s statewide perspective: Residential sales in Alabama continued to grow during the late summer of 2018. Total residential sales during August increased 3.5 percent year-over-year from 5,664 to 5,862 closed transactions. Year-to-date through August, statewide residential sales are up 6.6 percent from 39,594 one year ago to 42,209. Home price appreciation in the state also continues its upward trajectory. The median sales price in August increased 2.9 percent from $158,059 to $162,711, while the year-to-date median sales price is up 4.9 percent from 2017. Although nationwide inventory levels are starting to stabilize, Alabama’s residential inventory decreased 11.4 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices during August. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during August spent an average of 95 days on the market, an improvement of 22 days from 2017.

NAR’s national perspective: During August, nationwide sales volume for existing homes increased 0.7 percent year-over-year from 535,000 to 539,000 closed transactions. According to Lawrence Yun, chief economist for the National Association of Realtors, “Strong gains in the Northeast and a moderate uptick in the Midwest helped to balance out any losses in the South and West, halting months of downward momentum. With inventory stabilizing and modestly rising, buyers appear ready to step back into 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.

Related Stories