Alabama statewide home sales rebound in July

Alabama statewide home sales rebound in July
The statewide median home sales price in July was $176,926, an increase of 4.6% from one year ago. (iStock)

Sales: Alabama statewide home sales totaled 6,307 units during July, up 10.2% from 5,722 sales in the same month a year earlier. July sales were up 4% compared to 6,063 sales in June. Results were 22.8% above the five-year July average of 5,138 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 July totaled 21,865 units, a decrease of 9.9% from July 2018’s 24,273 units but an increase of 0.3% from June 2019’s 21,804 units. July’s months of supply totaled 3.5 months, a decrease of 18.3% from July 2018’s 4.2 months of supply. July’s months of supply also decreased from June’s 3.6 months of supply.

Pricing: The statewide median sales price in July was $176,926, an increase of 4.6% from one year ago but a decrease of 0.1% from the prior month. The homes selling in July spent an average of 89 days on the market (DOM). Homes sold three days slower than one year ago and the previous month (86 days). This indicator can fluctuate from month to month because of the sampling size of data and seasonal buying patterns.

Forecast: July sales were 454 units or 7.8% above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 5,853 sales for the month, while actual sales were 6,307 units. ACRE forecast a total of 35,934 residential sales year-to-date in 2019, while there were 37,489 actual sales through July, a difference of 4.3%.

ACRE’s statewide perspective: After a slight decline in June, statewide residential sales rebounded in July, increasing 10.2% from 5,722 closed transactions in July 2018 to 6,307 in July 2019. Year-to-date, sales are up 3.1% from 2018, a record year for residential sales. Home price appreciation in the state continued to climb as the median sales price in July increased 4.6% year-over-year from $169,178 to $176,926. The statewide median sales price is up 4.2% year-to-date. While nationwide inventory levels (active listings) decreased 1.6% year-over-year, Alabama’s residential listings continue to tighten, decreasing 9.9% 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 surprising to see homes selling at a slightly slower pace than one year ago. Homes selling in Alabama during July spent an average of 89 days on the market, an increase of three days from July 2018.

NAR’s national perspective: After a 7.4% drop in June, existing home sales strengthened in July. Nationwide residential sales increased 3.3% from approximately 523,000 closed transactions one year ago to 540,000 currently. The nationwide median existing-home price increased 4.3% in July, marking 89 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “Falling mortgage rates are improving housing affordability and nudging buyers into the market.” However, he added that the supply of affordable housing is low across the nation. “The shortage of lower-priced homes has markedly pushed up home prices.”

 

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.

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