Sales: Alabama statewide home sales totaled 6,392 units during May, up 1.4% from 6,306 sales in the same month a year earlier. May sales were up 9.8% compared to 5,820 sales in April. Results were 20.9 % above the five-year May average of 5,286 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 May totaled 21,851 units, a decrease of 11.6% from May 2018’s 24,720 units, but an increase of 1.7% from April 2019’s 21,481 units. May’s months of supply totaled 3.4 months, a decrease of 12.8% from May 2018’s 3.9 months of supply. May’s months of supply also decreased from April’s 3.7 months of supply.
Pricing: The statewide median sales price in May was $172,864, an increase of 4.3% from one year ago and an increase of 7.8% from the prior month. This direction is consistent with historical data (2014-18) indicating that the May median sales price on average increases from April by 3.3%. The homes selling in May spent an average of 88 days on the market (DOM), a decrease of 11.8% from 100 days in May 2018. The statewide DOM average in May was five days fewer than April. This indicator can fluctuate from month to month because of the sampling size of data and seasonal buying patterns.
Forecast: May sales were 476 units or 8.1% above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 5,916 sales for the month, while actual sales were 6,392 units. ACRE forecast a total of 23,977 residential sales year-to-date in 2019, while there were 25,119 actual sales through May, a difference of 4.8%.
ACRE’s statewide perspective: Statewide residential sales increased slightly in May, extending the streak to five consecutive months of year-over-year sales gains. Statewide residential sales increased 1.4% from 6,306 closed transactions in May 2018 to 6,392 in May 2019. Year-to-date, sales are up 3.2% from 2018. Home price appreciation in the state continued to climb as the median sales price in May increased 4.3% year-over-year from $165,688 to $172,864. The statewide median sales price is also up 3.4% year-to-date. Although nationwide inventory levels are trending upward, Alabama’s residential listings decreased 11.6% 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 May spent an average of 88 days on the market, an improvement of 12 days from May 2018.
NAR’s national perspective: Existing home sales rebounded in May, posting their first year-over-year gain since August 2018. Nationwide sales increased 0.9% from approximately 535,000 closed transactions one year ago to 540,000 currently. The nationwide median existing-home price increased 4.8% in May, marking 87 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “The purchasing power to buy a home has been bolstered by falling mortgage rates, and buyers are responding.”
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