Alabama statewide home sales in January up from one year ago

Published On: 02.25.19 |

By: ACRE Research

Alabama statewide home sales in January up from one year ago

The statewide median home sales price in January was $151,015, an increase of 5.5 percent from January 2018. (iStock)

Sales: Alabama statewide home sales totaled 3,358 units during January, up 1.1 percent from 3,320 sales in the same month a year earlier. January sales were down 22 percent compared to 4,303 sales in December. Results were 10.8 percent above the five-year January average of 3,031 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 January totaled 22,029 units, a decrease of 7.4 percent from January 2018’s 23,802 units, and an increase of 2.6 percent from December 2018’s 21,463 units. January months of supply totaled 6.6 months, a decrease of 8.5 percent from January 2018’s 7.2 months of supply. However, January’s months of supply increased from December’s 5 months of supply.

Pricing: The statewide median sales price in January was $151,015, an increase of 5.5 percent from one year ago and a decrease of 4.9 percent from the prior month. This direction is consistent with historical data (2014-18) indicating that the January median sales price on average decreases from December by 4.3 percent. The homes selling in January spent an average of 106 days on the market (DOM), a decrease of 8 percent from 116 days in January 2018 and a 4.7 percent increase from 102 days in December. This indicator can fluctuate from month to month because of the sampling size of data and seasonal buying patterns.

Forecast: January sales were 180 units, or 5.1 percent, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 3,538 sales for the month, while actual sales were 3,358 units. ACRE forecast a total of 60,385 residential sales statewide in 2019, while there were 61,072 actual sales in 2018.

ACRE’s statewide perspective: After a strong 2018, statewide residential sales in January increased 1.1 percent year-over-year from 3,320 to 3,358 closed transactions. Home price appreciation in the state continued to climb as the median sales price in January increased 5.5 percent year-over-year from $143,152 to $151,015. Although nationwide inventory levels are trending upward, Alabama’s residential listings decreased 7.4 percent from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during January spent an average of 106 days on the market, an improvement of 10 days from 2018.

NAR’s national perspective: During January, total existing-home sales nationwide declined 9 percent from approximately 313,000 closed transactions one year ago to 285,000 currently. Lawrence Yun, chief economist for the National Association of Realtors, said, “Existing home sales in January were weak compared to historical norms; however, they are likely to have reached a cyclical low. Moderating home prices combined with gains in household income will boost housing affordability, bringing more buyers to the market in the coming months.”