Sales: According to the Tuscaloosa Multiple Listing Service, Tuscaloosa-area residential sales totaled 286 units during August, up 22.2% from the same month a year earlier. August sales were down 2.4% compared to 293 sales in July. Results were 33.8% above the five-year August average of 214 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 August were 832 units, a decrease of 0.7% from August 2018’s 838 units and an increase of 1.5% from July 2019’s 820 units. August months of supply totaled 2.9 months, a decrease of 18.8% from August 2018’s 3.6 months of supply. August months of supply increased 3.9% from July’s 2.8 months of supply.
Pricing: The Tuscaloosa median sales price in August was $179,900, up 6% from one year ago and unchanged 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 August was 45 days, down 32.8% from 67 days in August 2018 and down 16.7% from 54 days in July 2019.
Forecast: August sales were 14 units, or 5.15%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 272 sales for the month, while actual sales were 286 units. ACRE forecast a total of 1,906 residential sales in the Tuscaloosa area year-to-date, while there were 1,917 sales through August.
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 Tuscaloosa Residential Monthly Report is developed in conjunction with the Tuscaloosa Association of Realtors to better serve West Alabama consumers.