Alabama’s Fastest Selling Markets (November 2019)

Alabama’s Fastest Selling Markets (November 2019)

Topics: Research, Residential Real Estate, Research

Markets: Athens (Limestone County), Birmingham Metro, Calhoun County, Huntsville-Madison County, Morgan County (Decatur), Statewide

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

  1. 1. Birmingham: 33 days
  2. 2. Huntsville: 36 days
  3. 3. Athens: 39 days
  4. 4. Decatur: 51 days
  5. 5. Calhoun County: 55 days
     

Statewide Average: 92 days

National Average: 70 days
 

Birmingham- With an average DOM of 33 days, the Birmingham area was Alabama’s fastest selling market in November. Residential markets in the area now have 36 consecutive months of Y/Y improvement in average DOM, a streak that goes back to December 2016. Mirroring statewide trends but to a lesser degree, inventory was tight during November as listings declined 6.3% from one year ago. Inventory shortages in Alabama’s largest residential market, however, are quite 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 decreased 6.4% Y/Y. Even with slowing sales in November, sales are up 2.3% YTD. Home price appreciation continued its upward trajectory as the median sales price increased 10.2% Y/Y, and the market is now up 5.9% YTD. With 4.2 months of supply, Birmingham is a seller’s market, a factor contributing to rising home prices. Dollar volume is on the rise as it increased 2.9% in November from $291.3 million one year ago to $299.8 million currently.  

 

Huntsville- With an average DOM of 36 days, the Huntsville area was Alabama’s second fastest selling market in November. The area now has 39 consecutive months of Y/Y improvement in average DOM, an impressive streak that began in November 2016. The area’s YTD DOM average improved from 58 in 2018 to 44 in 2019, making it the second fastest selling market in the state YTD behind Birmingham. Mirroring statewide trends but to a greater degree, residential listings in the Huntsville metro area during November were down 33.8% from one year ago. Demand for housing remained strong as closed sales increased 2.5% Y/Y from 590 to 605 closed transactions. While the area has, arguably, the tightest inventory in the state, and continued sales growth (up 5.2% YTD), it was not surprising to see home price appreciation in the area continue to trend upwards. Huntsville’s median sales price increased 6% Y/Y during November, and is now up 8.7% YTD. Dollar volume continues to rise as it increased 12.2% Y/Y from $139.6 million in November 2018 to $156.6 million in November 2019. 

 

Athens- With a robust new construction market, Athens was Alabama’s third fastest selling market in November with a DOM average of 39 days. Properties sold in November closed 12 days faster than one year ago, while the area’s year-to-date DOM average improved from 61 in 2018 to 49 in 2019. Average DOM in the Athens area has improved Y/Y for 25 consecutive months, a streak that began in November 2017. Mirroring trends seen across the north Alabama region, inventory declined 28.2% Y/Y, extending the streak of Y/Y inventory declines to 52 months. Demand slowed a little in November as closed sales declined 3.7% Y/Y, but sales are up 7.1% YTD. Home price appreciation regained momentum as it rose 10.5% Y/Y and now stands at 8.9% YTD. Dollar volume increased 7.5% from $36.7 million one year ago to $39.4 million during November. 

 

Decatur- Residential properties in this area sold at an average of 51 days, down 12 days Y/Y and 18 days YTD when compared to November of last year. Following statewide trends, Decatur saw a significant drop in inventory this month, falling 28% Y/Y, continuing the 57 month streak dating back to January 2015. Demand was especially strong in November as closed sales increased 22.7% Y/Y, bringing year-to-date sales growth to 2.7%. Dollar volume increased 18.9% from $18.8 million in November of last year to $22.4 million currently. 

 

Calhoun County- Alabama’s fifth fastest selling market averaged 55 days on the market during November, an improvement of eight days from one year ago. Year-to-date, properties in the area are selling nine days faster than in 2018. Following statewide trends, total listings in the area declined 6.1% in November, extending the area’s streak of Y/Y inventory declines to 15 months. Of Alabama’s 14 metro areas*, only one experienced an inventory gain in November (Lee County up 12% from November 2019). On the demand side, sales were flat in November as they were equal to one year ago, but sales are up 3.7% YTD. Home price appreciation was especially strong in November as the median sales price gained 10.1% Y/Y, while the YTD median sales price is up 1.8% from last year. Dollar volume is back on the rise as it increased 13.5% from $16.6 million one year ago to $18.8 million currently.  
 

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