Sales: Alabama statewide home sales totaled 6,063 units during June, down 3.4% from 6,277 sales in the same month a year earlier. June sales were down 5.1% compared to 6,293 sales in May. Results were 11.4% above the five-year June average of 5,422 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 June totaled 21,804 units, a decrease of 9.7% from June 2018’s 24,159 units and a decrease of 0.2% from May 2019’s 21,851 units. June’s months of supply totaled 3.6 months, a decrease of 6.6% from June 2018’s 3.8 months of supply. June’s months of supply, however, increased from May’s 3.4 months of supply.

Pricing: The statewide median sales price in June was $177,018, an increase of 7.3% from one year ago and an increase of 2.4% from the prior month. This direction is consistent with historical data (2014-18) indicating that the June median sales price on average increases from May by 5.5%. The homes selling in June spent an average of 86 days on the market (DOM), a record low according to ACRE’s database. Homes sold 14 days faster than one year ago and two days faster than the previous month. This indicator can fluctuate from month to month because of the sampling size of data and seasonal buying patterns.

Forecast: June sales were 44 units or 0.7% below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 6,104 sales for the month, while actual sales were 6,063 units. ACRE forecast a total of 30,081 residential sales year-to-date in 2019, while there were 31,182 actual sales through June, a difference of 3.7%.

ACRE’s statewide perspective: Statewide residential sales decreased slightly in June, ending a five-month streak of year-over-year sales gains. This was the first such decline since December 2018 and only the fourth in the last two years. Statewide residential sales decreased 3.4% from 6,277 closed transactions in June 2018 to 6,063 in June 2019. Year-to-date, however, sales are up 1.8% from 2018, a record year for residential sales. Home price appreciation in the state continued to climb as the median sales price in June increased 7.3% year-over-year from $164,987 to $177,018. The statewide median sales price is up 4.1% year-to-date. While nationwide inventory levels (active listings) are stabilizing (equal to June 2018), Alabama’s residential listings decreased 9.7% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and in the summer 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 June spent an average of 86 days on the market, an improvement of 14 days from June 2018.

NAR’s national perspective: After a small gain in May, existing home sales weakened in June. Nationwide residential sales decreased 7.5% from approximately 570,000 closed transactions one year ago to 527,000 currently. The nationwide median existing-home price increased 4.4% in June, marking 88 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of REALTORS, said, “Home sales are running at a pace similar to 2015 levels – even with exceptionally low mortgage rates, a record number of jobs and a record high net worth in the country.” Yun said there is a housing shortage across the country and more inventory is needed, especially in the entry-level price range. “Imbalance persists for mid- to lower-priced homes with solid demand and insufficient supply, which is consequently pushing up home prices,” he said.

Click here to view the entire monthly report.

The Alabama Residential Monthly Report is developed in connection with the Alabama Association of Realtors and its local associations.