Tuscaloosa-area median home sales price up 7% from one year ago

Tuscaloosa-area median home sales price up 7% from one year ago
Total May home sales in the Tuscaloosa area were 15% above the five-year May average. (ACRE)

Sales: According to the Tuscaloosa Multiple Listing Service, Tuscaloosa-area residential sales totaled 286 units during May, down 4.3% from the same month a year earlier. May sales were up 7.9% compared to 265 sales in April. Results were 15% above the five-year May average of 249 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 May were 820 units, an increase of 2.1% from May 2018’s 803 units and an increase of 0.4% from April 2019’s 817 units. May months of supply totaled 2.9 months, an increase of 6.8% from May 2018’s 2.7 months of supply. May months of supply decreased 7% from April’s 3.1 months of supply.

Pricing: The Tuscaloosa median sales price in May was $188,600, an increase of 6.6% from one year ago and an increase of 0.7% 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 May was 57 days, down 3.4% from 59 days in May 2018.

Forecast: May sales were 16 units, or 5.9%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 270 sales for the month, while actual sales were 286 units. ACRE forecast a total of 1,065 residential sales in the Tuscaloosa area year-to-date, while there were 1,090 sales through May.

ACRE’s statewide perspective: While nationwide residential sales dropped 1% in April, demand for housing in Alabama remained strong. Statewide residential sales increased 4.4% from 5,574 closed transactions in April 2018 to 5,820 in April 2019. Year-to-date, sales increased 3.8% from 2018. Home price appreciation in the state continued to climb as the median sales price in April increased 3.2% year-over-year from $155,250 to $160,283. The statewide median sales price is also up 3.2% year-to-date. Although nationwide inventory levels are trending upward, Alabama’s residential listings decreased 10.7% 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% from approximately 460,000 closed transactions one year ago to 455,000 currently. The nationwide median existing-home price increased 3.6% 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.”

 

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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