Tuscaloosa median home sales price up slightly compared to a year ago

Tuscaloosa median home sales price up slightly compared to a year ago
The Tuscaloosa median home sales price in August was $169,700, an increase of 1.5 percent from the same month in 2017. (iStock)

Sales: According to the Tuscaloosa Multiple Listing Service, Tuscaloosa-area residential sales totaled 234 units during August, down 4.9 percent from 246 sales in the same month a year earlier. August sales were down 6 percent compared to 249 sales in July. Results were 7.8 percent above the five-year August 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 August were 838 units, a decrease of 12.6 percent from August 2017’s 959 units and a decrease of 2.8 percent from July 2018’s 862 units. August months of supply totaled 3.6 months, a decrease from August 2017’s 3.9 months of supply. However, August‘s months of supply increased from July’s 3.5 months of supply.

Pricing: The Tuscaloosa median sales price in August was $169,700, an increase of 1.5 percent from one year ago and a decrease of .6 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 .3 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 August was 67 days, an increase of 4.7 percent from 64 days in August 2017 and an increase of 39.6 percent from 48 days in July.

Forecast: August sales were 45 units, or 16.1 percent, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 279 sales for the month, while actual sales were 234 units. ACRE forecast a total of 1,934 residential sales in the Tuscaloosa area year-to-date, while there were 1,881 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 Tuscaloosa Residential Monthly Report is developed in conjunction with the Tuscaloosa Association of Realtors to better serve West Alabama consumers.

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