Tuscaloosa homes selling significantly faster than a year ago

Tuscaloosa homes selling significantly faster than a year ago
The Tuscaloosa median home sales price in February was $174,900, an increase of 6 percent from February 2018. (iStock)

Sales: According to the  Tuscaloosa Multiple Listing Service, Tuscaloosa-area residential sales totaled 152 units during February, down 12.1 percent from 185 sales in the same month a year earlier. February sales were up 9.4 percent compared to 139 sales in January. Results were 5.6 percent below the five-year February average of 161 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 February were 798 units, a decrease of 4.9 percent from February 2018’s 839 units and a decrease of 6.6 percent from January 2019’s 854 units. February months of supply totaled 5.3 months, an increase of 15.8 percent from February 2018’s 4.5 months of supply. February’s months of supply decreased 14.5 percent from January’s 6.1 months of supply.

Pricing: The Tuscaloosa median sales price in February was $174,900, an increase of 6 percent from one year ago and a decrease of 2.8 percent from the prior month. 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 February was 68 days, down 17.1 percent from 82 days in February 2018.

Forecast: February sales were 30 units, or 16.5 percent, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 182 sales for the month, while actual sales were 152 units. ACRE forecast a total of 332 residential sales in the Tuscaloosa area year-to-date, while there were 291 sales through February.

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.”

 

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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