Alabama statewide home sales up 9% in October YTD
The statewide median home sales price in October was $156,872, an increase of 7.1 percent from one year ago. (iStock)
Sales: Alabama statewide home sales totaled 4,880 units during October, up 9.1 percent from 4,473 sales in the same month a year earlier. However, October sales were down 3.8 percent compared to 5,074 sales in September. Results were 23.8 percent above the five-year October average of 3,940 sales. Two more resources to review: Quarterly Report and Annual Report.
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While nationwide sales declined during October, residential sales in Alabama continued to grow. (iStock)
Inventory: Homes listed for sale statewide during October totaled 23,200 units, a decrease of 9.2 percent from October 2017’s 25,549 units, and a decrease of 2 percent from September 2018’s 23,672 units. October months of supply totaled 4.8 months, a decrease of 16.8 percent from October 2017’s 5.7 months of supply. However, October’s months of supply increased from September’s 4.7 months of supply.
Pricing: The statewide median sales price in October was $156,872, an increase of 7.1 percent from one year ago and a decrease of 3.5 percent from the prior month. This direction is consistent with historical data (2013-17) indicating that the October median sales price on average decreases from September by 0.7 percent. The homes selling in October spent an average of 98 days on the market (DOM), a decrease of 13.6 percent from 113 days in October 2017, but an 8.8 percent increase from 90 days in September. This indicator can fluctuate from month to month because of the sampling size of data and seasonal buying patterns.
Forecast: October sales were 316 units, or 6.9 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 4,564 sales for the month, while actual sales were 4,880 units. ACRE forecast a total of 49,347 residential sales statewide year-to-date, while there were 52,206 actual sales through October.
ACRE’s statewide perspective: While nationwide sales declined 2.6 percent during October, residential sales in Alabama continued to grow during the fall of 2018. Total residential sales in Alabama increased 9.1 percent year-over-year from 4,473 to 4,880 closed transactions. Year-to-date through October, statewide residential sales are up 7 percent from 48,745 one year ago to 52,163 currently. Home price appreciation in the state continued to grow as the median sales price in October increased 7.1 percent year-over-year from $146,458 to $156,872. The year-to-date median sales price is up 4.8 percent from 2017. Although nationwide inventory levels increased 2.8 percent in October, Alabama’s residential inventory decreased 9.2 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices throughout 2018. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during October spent an average of 98 days on the market, an improvement of 15 days from 2017.
NAR’s national perspective: During October, nationwide inventory for existing homes increased 2.8 percent year-over-year from 1.8 million to 1.85 million residential listings. According to Lawrence Yun, chief economist for the National Association of Realtors, “As more inventory enters the market and we head into the winter season, home price growth has begun to slow more meaningfully. This allows for much more manageable, less frenzied buying conditions.”
Source: Alabama Center of Real Estate