Sales: Alabama statewide home sales totaled 5,820 units during April, up 4.4 percent from 5,574 sales in the same month a year earlier. April sales were up 9.2 percent compared to 5,330 sales in March. Results were 25.5 percent above the five-year April average of 4,636 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 April totaled 21,481 units, a decrease of 10.7 percent from April 2018’s 24,055 units, but an increase of 2.2 percent from March 2019’s 21,017 units. April’s months of supply totaled 3.7 months, a decrease of 14.5 percent from April 2018’s 4.3 months of supply. April’s months of supply also decreased from March’s 3.9 months of supply.
Pricing: The statewide median sales price in April was $160,283, an increase of 3.2 percent from one year ago and a decrease of 1.3 percent from the prior month. This direction is not consistent with historical data (2014-18) indicating that the April median sales price on average increases from March by 4.2 percent. The homes selling in April spent an average of 93 days on the market (DOM), a decrease of 2.2 percent from 96 days in April 2018. The statewide DOM average in April was five days less than March. This indicator can fluctuate from month to month because of the sampling size of data and seasonal buying patterns.
Forecast: April sales were 5,820 units or 10.9 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 5,248 sales for the month, while actual sales were 5,820 units. ACRE forecast a total of 18,061 residential sales year-to-date in 2019, while there were 18,727 actual sales through April, a difference of 3.7 percent.
ACRE’s statewide perspective: While nationwide residential sales dropped 1 percent in April, demand for housing in Alabama remained strong. Statewide residential sales increased 4.4 percent from 5,574 closed transactions in April 2018 to 5,820 in April 2019. Year-to-date, sales increased 3.8 percent from 2018. Home price appreciation in the state continued to climb as the median sales price in April increased 3.2 percent year-over-year from $155,250 to $160,283. The statewide median sales price is also up 3.2 percent year-to-date. Although nationwide inventory levels are trending upward, Alabama’s residential listings decreased 10.7 percent from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and in the spring buying season of 2019. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during April spent an average of 93 days on the market, an improvement of three days from April 2018.
NAR’s national perspective: During April, total existing-home sales nationwide declined 1.1 percent from approximately 460,000 closed transactions one year ago to 455,000 currently. The nationwide median existing-home price increased 3.6 percent in April, marking 86 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “First, we are seeing historically low mortgage rates combined with a pent-up demand to buy, so buyers will look to take advantage of these conditions. Also, job creation is improving, causing wage growth to align with home price growth, which helps affordability and will help spur more home sales.”
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