Sales: Alabama statewide home sales totaled 6,302 units during August, up 7.5% from 5,862 sales in the same month a year earlier. August sales were down 0.1% compared to 6,307 sales in July. Results were 23.3% above the five-year August average of 5,112 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 August totaled 21,122 units, a decrease of 12.6% from August 2018’s 24,165 units and a decrease of 3.4% from July 2019’s 21,865 units. August’s months of supply totaled 3.4 months, a decrease of 18.7% from August 2018’s 4.1 months of supply. August’s months of supply also decreased from July’s 3.5 months of supply.

Pricing: The statewide median sales price in August was $175,932, an increase of 8.1% from one year ago but a decrease of 0.6% from the prior month. The homes selling in August spent an average of 86 days on the market (DOM). Homes sold nine days faster than one year ago and three 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: August sales were 508 units or 8.8% above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 5,794 sales for the month, while actual sales were 6,302 units. ACRE forecast a total of 41,728 residential sales year-to-date in 2019, while there were 43,791 actual sales through August, a difference of 4.9%.

ACRE’s statewide perspective: A strong late-summer buying season continued in August as total residential sales increased 7.5% year-over-year from 5,862 to 6,302 closed transactions. Year-to-date, sales are up 3.8% from 2018, a record year for residential sales. Home price appreciation in the state continued to climb as the median sales price in August increased 8.1% year-over-year, marking 22 consecutive months of gains. The statewide median sales price is up 4.7% year-to-date. While nationwide inventory levels (active listings) decreased 2.6% year-over-year, Alabama’s residential listings continue to tighten, decreasing 12.6% 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 at a slightly quicker pace than one year ago. Homes selling in Alabama during August spent an average of 86 days on the market, a decrease of nine days from August 2018.

NAR’s national perspective: After a 3.3% gain in July, existing home sales decreased 0.9% year-over-year in August from approximately 539,000 closed transactions one year ago to 534,000 currently. The nationwide median existing-home price increased 4.7% in August, marking 90 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “As expected, buyers are finding it hard to resist the current (mortgage) rates. The desire to take advantage of these promising conditions is leading more buyers to the market.” He continued, “Sales are up, but inventory numbers remain low and are thereby pushing up home prices. Homebuilders need to ramp up new housing, as the failure to increase construction will put home prices in danger of increasing at a faster pace than income.”

Click here to view the entire monthly report.

The Alabama Residential Monthly Report is developed in connection with the Alabama Association of Realtors.