Alabama's Fastest Selling Markets in January 2020
Topics: Residential Real Estate
The Alabama Center for Real Estate created the following rankings based on average days on market (DOM) for closed transactions during January.
Birmingham: 41 days
Athens: 43 days
Huntsville: 44 days
Calhoun County: 55 days
Talladega County: 58 days
Statewide Average: 92 days
National Average: 86 days
Birmingham- With an average DOM of 41 days, the Birmingham area was Alabama’s fastest selling market in January. Residential markets in the area now have 38 consecutive months of Y/Y improvement in average DOM, a streak that goes back to December 2016. Mirroring statewide trends but to a greater degree, inventory was tight during January as listings declined 26.9% from one year ago. Inventory shortages in Alabama’s largest residential market are not much different from the second largest market, the Huntsville area. Inventory declines of 25-30% are the new normal in the Huntsville area and larger north Alabama region. On the demand side, total residential sales in the Birmingham area increased 16.8% from last year. January of 2020 saw a decline of 20.8% when compared to the previous month. Median sales price growth was especially strong in January with an increase of 12.0% from one year ago. With 4.2 months of supply, Birmingham is a seller’s market, a factor contributing to rising home prices. Dollar volume also posted a large gain as it increased 21.5% in January from $196.8 million one year ago to $239.2 million currently.
Athens- With a robust new construction market, Athens was Alabama’s second fastest selling market in January with a DOM average of 43 days. January 2020 saw a decrease of 17.3% from January 2019’s total of 52 days spent on the market. This indicator has now improved for 27 consecutive months, a streak that began in December 2017. Mirroring trends seen across the north Alabama region, inventory declined 23.6% versus one year ago, extending the streak of Y/Y inventory declines to 54 months. Demand rebounded in January as closed sales improved 20.0%, but decreased 17.7% from the month prior. Median sales price declined 1% in January, but will likely rebound in the months to come. Dollar volume increased 8.9% from $31.3 million one year ago to $34.1 million during January.
Huntsville- With an average DOM of 44 days, the Huntsville area was Alabama’s third fastest selling market in January. The area now has 41 consecutive months of Y/Y improvement in average DOM, an impressive streak that began in December 2016. Mirroring statewide trends but to a greater degree, residential listings in the Huntsville metro area during January were down 35.1% from one year ago, the largest such decrease in the state. Demand for housing was especially strong as closed sales increased 22.2% from 478 to 584 closed transactions. While the area has, arguably, the tightest inventory in the state, it was not surprising to see home price appreciation in the area continue to trend upwards. Huntsville’s median sales price increased 6.6% in January. Dollar volume continues to rise as it increased 31.2% from $113.6 million in January 2019 to $149.0 million in January 2020.
Calhoun County- Alabama’s fourth fastest selling market averaged 55 days on the market during January, an improvement of 46 days from one year ago. Following statewide trends, total listings in the area increased 8.6% in January. On the demand side, sales increased in January rising 50.6% versus January 2019, while sales are down 12.7% on the year. Home price appreciation was especially strong in January as the median sales price rose 9.1%, while the YTD median sales price is down 2.5% from last year. With rising sales activity and small price declines, dollar volume gained an impressive 31.2% from $13.2 million one year ago to $20.0 million currently.
Talladega County- One of the faster selling non-metro areas in the state, Talladega County was the fifth fastest selling market in January when properties sold in an average of 58 days. Following statewide trends, inventory (properties listed for sale) in the area is declining, falling 4.4% in January, breaking a streak of 6 consecutive months of inventory gains. Demand was especially strong in January as closed sales increased 103.0% from one year ago, bringing year-to-date sales to 67 closed transactions. Dollar volume increased 101.0% from $5.7 million in January of last year to $11.5 million currently.