Sales: Alabama statewide home sales totaled 5,211 units during October, up 6.7% from 4,883 sales in the same month a year earlier. October sales were down 5.4% compared to 5,510 sales in September. Results were 23.4% above the five-year October average of 4,222 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 October totaled 20,719 units, a decrease of 10.7% from October 2018’s 23,210 units and a decrease of 3.1% from September 2019’s 21,373 units. October’s months of supply totaled 4 months, a decrease of 16.4% from October 2018’s 4.8 months of supply. October’s months of supply increased from September’s 3.9 months of supply.
Pricing: The statewide median sales price in October was $171,508, an increase of 10.1% from one year ago and a decrease of 2.3% from the prior month. The homes selling in October spent an average of 88 days on the market (DOM). Homes sold eight days faster than one year ago and six days slower than the previous month. This indicator can fluctuate from month to month because of the sampling size of data and seasonal buying patterns.
Forecast: October sales were 446 units or 9.1% above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 4,775 sales for the month, while actual sales were 5,211 units. ACRE forecast a total of 51,591 residential sales year-to-date in 2019, while there were 54,527 actual sales through October, a difference of 5.7%.
ACRE’s statewide perspective: Residential sales growth continued in October as total residential sales increased 6.7% year-over-year from 4,883 to 5,211 closed transactions. Year-to-date, sales are up 4.5% from 2018, a record year for residential sales. Home price appreciation in the state continued to climb as the median sales price in October increased 10.1% year-over-year, marking 24 consecutive months of gains. The statewide median sales price is up 5.5% year-to-date. While properties listed for sale nationwide decreased 4.3% year-over-year, Alabama’s residential listings continued to tighten, decreasing 10.7% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and continued into the fourth quarter 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 October spent an average of 88 days on the market, a decrease of eight days from October 2018.
NAR’s national perspective: Existing home sales rebounded in October, increasing 3.8% year-over-year from approximately 446,000 closed transactions one year ago to 463,000 currently. The nationwide median existing-home price increased 6.2% in October, marking 92 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “Historically-low interest rates, continuing job expansion and higher weekly earnings are undoubtedly contributing to these higher numbers. We will likely continue to see sales climb as long as potential buyers are presented with an adequate supply of inventory.”
Click here to view the entire monthly report.
The Alabama Residential Monthly Report is developed in connection with the Alabama Association of Realtors.