housing

Sales: According to the Alabama Association of Realtors, August home sales in the state increased 9% year-over-year from 6,317 to 6,884 closed transactions. Sales decreased 10.8% from July and are now up 7% year-to-date. As the COVID-19 pandemic continues to unfold, however, declining sales activity remains a possibility in the months ahead. Two more resources to review: Quarterly Report and Annual Report.

For all statewide housing data, click here.

Inventory: Homes listed for sale decreased 30.1% from 21,198 listings one year ago to 14,816 in August. Months of supply dropped from 3.4 months to 2.2, reflecting a market where sellers generally have elevated bargaining power.

Pricing: The statewide median sales price in August was $203,049, an increase of 15.2% from one year ago and an increase of 3.2% from July. 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.

Homes sold in August averaged 89 days on the market (DOM), selling three days slower than one year ago.

Forecast: August sales were 590 units or 9.4% above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 6,294 sales for the month, while actual sales were 6,884 units. ACRE forecast a total of 45,187 residential sales year-to-date, while there were 46,865 actual sales through August, a difference of 3.7%.

New construction: The 900 new homes sold represent 13.1% of all residential sales in the state in August. Total sales increased 19.8% year-over-year, extending the state’s streak of Y/Y gains in new home sales to 14 consecutive months. The median sales price in August was $269,685, an increase of 7.9% from July and an increase of 7.3% from one year ago.

Click here to view the entire monthly report.

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

Editor’s note: All information in this article reflects data provided to the Alabama Center for Real Estate for Aug. 1-31. Thus, the performance represented is historical and should not be used as an indicator of future results, particularly considering the impact of COVID-19 on the housing market.