Statewide Residential Sales Up Significantly in January
Sales: Alabama’s home sales totaled 4,122 units during January, up 23.2% from 3,347 sales in the same month a year earlier. Following seasonal trends, January sales were down 19.4% compared to 4,122 sales in December. Results were 29.7% above the five-year January average of 3,179 sales. Two more resources to review: Quarterly Report and Annual Report.
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Inventory: Homes listed for sale in the state during January totaled 17,951 units, a decrease of 17% from January 2019’s 21,634 units and a decrease of 3.3% from December 2019’s 18,562 units. January's months of supply totaled 4.4 months, a decrease of 32.6% from January 2019’s 6.5 months of supply. January's months of supply increased from December’s 3.6 months of supply.
Pricing: The statewide median sales price in January was $166,998, an increase of 11.8% from one year ago and an increase of 0.4% from the prior month. The homes selling in January spent an average of 92 days on the market (DOM). Homes sold 15 days faster than one year ago and eight 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.
ACRE’s statewide perspective: Residential sales growth was especially strong in January as total residential sales increased 23.2% year-over-year from 3,347 to 4,122 closed transactions. Markets across the state have plenty of momentum as 2019 was a record year for residential sales in Alabama. Home price appreciation continued to climb as the median sales price in January increased 11.8% year-over-year, marking 27 consecutive months of gains. While properties listed for sale nationwide decreased 10.7% year-over-year, Alabama’s residential listings continued to tighten, decreasing 17% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2019 and continued into January. With low inventory levels, it is not surprising to see homes selling at a slightly quicker pace. Homes selling in Alabama during January spent an average of 92 days on the market, a decrease of 15 days from January 2019.
NAR’s national perspective: Existing home sales increased significantly in January, rising 11.6% year-over-year from approximately 285,000 closed transactions one year ago to 318,000 currently. The nationwide median existing-home price increased 6.8% in January, marking 95 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “The trend line for housing starts is increasing and showing steady improvement, which should ultimately lead to more home sales. Mortgage rates have helped with affordability, but it is supply conditions that have driven price growth.” Properties listed for sale nationwide declined 10.7% in January from approximately 1.59 million listings one year ago to 1.42 million currently.