Alabama’s Fastest Selling Markets (June 2019)

Alabama’s Fastest Selling Markets (June 2019)

Topics: Research, Residential Real Estate, Research

Markets: Athens (Limestone County), Birmingham Metro, Huntsville-Madison County, Mobile Area, Statewide, Tuscaloosa Area

The Alabama Center for Real Estate created the following rankings based on average days on market (DOM) for closed transactions during June. 

  1. 1. Birmingham - 30 days
  2. 2. Huntsville - 39 days
  3. 3. Athens - 46 days
  4. 4. Tuscaloosa - 54 days
  5. 5. Mobile - 57 days

 

Statewide Average - 86 days

National Average -  58 days


Birmingham- With a DOM average reaching a record low of 30 days, Birmingham was Alabama’s fastest selling market during June. Residential markets in the Birmingham area now have 31 consecutive months of Y/Y improvement in average DOM, an impressive streak that started in December 2016. Mirroring statewide trends but to a lesser degree, inventory was tight during June as listings dropped 6.2% from one year ago. Inventory shortages, however, are not as severe as in the north Alabama region where 20-30% inventory declines are the new normal. Total residential sales in the area increased 2.8% Y/Y, sustaining last year’s impressive sales results. Year-to-date sales are up but to a lesser degree, however, as they have moderated to 0.4% growth from 2018. Home price appreciation continues to trend upwards as the median sales price in the Birmingham area during June increased 4.9% Y/Y from $219,250 to $230,000, and is up 6.4% YTD. With 3.4 months of supply, Birmingham is a strong seller’s market, a factor contributing to rising home prices. Dollar volume is on the rise as it increased 8.3% in June from $391.7 million one year ago to $424.4 million currently.  

Huntsville- Residential properties selling in June averaged 39 days on the market, an improvement of 20 days from one year ago. The area’s YTD DOM average improved from 67 in 2018 to 50 in 2019, making it the second fastest selling market in the state YTD behind Birmingham. With June’s improvement, the Huntsville area now has 34 consecutive months of Y/Y improvements in average DOM, a streak that began in September 2016. Mirroring statewide trends but to a greater degree, residential listings in the Huntsville metro area during June were down 31.2% from one year ago. Demand for housing, however, remained strong as sales came close (down 0.8% Y/Y) to matching record levels seen in 2018, and they are up 1.7% YTD. With tight inventory and continued sales activity, it was not surprising to see home price appreciation in the area continue to trend upwards. Huntsville’s median sales price increased 3.1% Y/Y during June, roughly half the statewide average of 7.3%. Dollar volume also increased 3.4% Y/Y from $196.7 million in June 2018 to $203.4 million in June 2019.   

Athens- Driven in part by a strong new construction market, Athens was Alabama’s third fastest selling market in June with a DOM average of 46 days. Properties selling in June closed an impressive 14 days faster than one year ago, while the area’s year-to-date DOM average declined from 73 in 2018 to 53 in 2019. Average DOM in the Athens area has improved Y/Y for 20 consecutive months, a streak that began in November 2017. Mirroring trends seen across the north Alabama region, inventory declined 25.2% Y/Y, extending the streak of Y/Y inventory declines to 47 months. Demand for housing in the area remained strong as June sales were equal to one year ago. Sales are now up 12.6% YTD, the second strongest sales growth thus far in 2019 behind the Phenix City Area. With tight inventory and growing demand for housing in the area, it was not surprising to see the area’s median sales price grow 3.8% Y/Y. This was, however, a bit lower than the statewide average of 7.3% in June. Dollar volume was up 6.9% from $44.8 million one year ago to $47.9 million during June, extending the streak of Y/Y dollar volume gains to 42 months, an impressive streak that began in January 2016. 

Tuscaloosa- Alabama’s fourth fastest selling market averaged 54 days on the market during June, an improvement of 6 days from one year ago. Year to date, properties in the area are selling eight days faster than in 2018. The Tuscaloosa area went against statewide trends by posting a slight (0.1%) inventory gain in June. It was one of only 3 of Alabama’s 14 metro areas to post a Y/Y inventory gain: The others being Baldwin County (1.2%) and Lee County (21.2%). Even with slightly expanding inventory, sales dropped 22.5% Y/Y in June. Sales are down on the year as they declined 4.3% from 2018. The area’s median sales price, however, increased 5% from $179,500 to $188,900 in June, and the YTD median sales price is up 5.3% from last year. Dollar volume decreased 26.3% from $74.9 million one year ago to $55.2 million currently. 

Mobile- Residential properties selling in June averaged 57 days on the market, an improvement of 10 days from one year ago. Year-to-date, properties in the Mobile area are selling 23 days, or 21.5%, faster than one year ago. Inventory is also short in the area as listings declined 9.1% Y/Y during June, marking 68 consecutive months of Y/Y inventory declines going back to November 2013, the longest streak of Y/Y inventory declines in the state. While total residential sales decreased slightly in June (down 2.3%), median sales price increased 12.4% Y/Y, well ahead of the statewide average of 7.3%. Dollar volume increased 11.4% Y/Y from $76.7 million in June 2018 to $85.4 million in June 2019.  
 

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