Alabama residential home sales in March improve 2% from last year

By
Real Estate Agent with iXL Real Estate-Wiregrasss\

 

 

March sales now up 16% from its sales bottom in 2009.

 Alabama sales graph

Alabama residential sales totaled 3,596 units in March, an improvement in sales growth of 1.5 percent from last year and 347 units short of the ACRE monthly forecast. The YTD sales forecast through March projected 9,766 closed transactions while the actual sales were 9,120 units, 6% off which is just outside the margin of error. Sales for the first quarter were….”sluggish”. The next quarter will be a big factor in determining how the year goes. The annual sales forecast is for modest growth of 5% - but the sales growth through the first quarter was 1.2%. 

 Across Alabama, 52 percent of local markets reported positive sales growth compared to last March, which is decent. 

 Supply: The statewide housing inventory in March was 32,560 units, an increase of 0.9% from  March 2013 and 17.9 percent below the month of March peak in 2010 (39,660 units). There was 9.1 months of housing supply (8 months considered equilibrium) in March 2014 versus 9.1 months of supply in March 2013, so slightly better. March inventory increased by 2.7% from February. This direction is consistent with historical* data that indicates March inventory on average traditionally increases from the month of February by 1.9%. Altho National Markets are reporting shortages, we still have the quantity, but possibly not the quality (best have been snatched up). Only 9 of 25 or 36% of local markets have single-digit months of housing supply, so this is not very good but better than last month where only 5 were that low with the metro areas leading the sales push!

 Demand: As anticipated, March statewide residential sales improved at a rate of 23.4%, similar to the historical* figure of 31.1% from February. Fewer foreclosures & short sales factor into the drop.

 Pricing: As can be expected when taking into account our overall level of supply (see above), pricing represents the primary indicator that still has the greatest upside in the future. The median sales price did improve by approximately 6.4 percent over last year across Alabama during the first quarter of 2014 but remains below the nation's recent pace of appreciation. A gradual increases in pricing is preferred over the spikes seen in many parts of the country. 

Industry Perspective: per Lawrence Yun, an economist of NAR, recently commented on the sluggish sales in early 2014, "We had ongoing unusual weather disruptions across much of the country last month, with the continuing frictions of constrained inventory (at national level), restrictive mortgage lending standards and housing affordability less favorable than a year ago. Some transactions are simply being delayed, so there should be some improvement in the months ahead. With an expected pickup in job creation, home sales should trend up modestly over the course of the year."

 

2013 Alabama Residential Recap - Sales Up 10% 

 

* “historic” = 2009-2013

This Report is developed in conjunction with the Alabama Association of REALTORS and its local associations, compliments of the ACRE Corporate Cabinet.

Posted by

_______________________________

Travis Parker
Associate Broker, Military Relocation Professional
CRS, ABR, MRP, SFR, e-PRO®, BPOR, ACRE

Team Linda Simmons Real Estate, Inc.
1611 E. Park Ave.
Enterprise, AL 36330
334-494-7846 cell
334-347-8441 office
334-347-7653 fax

"follow-me" phone # 70-SOLD-MANN
www.teamlindasimmons.com

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Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

Travis sound like the market in Alabama is heading in the right direction.  Good information for consumers.

Apr 28, 2014 03:45 PM #1
Rainmaker
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Sondra Meyer:
Star View Real Estate - Colorado Springs, CO
See It. Experience It. Live It.

Travis, I'm glad your area is improving.  I have some fond memories of time spent in Alabama.  

Apr 29, 2014 02:38 PM #2
Rainmaker
1,296,355
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Travis~ awesome market report! This post is more proof that buyers and sellers need to call you for any and all RE needs...

Apr 30, 2014 03:50 AM #3
Rainmaker
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Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Travis. Some positive trends, hopefully you market will continue moving in the right direction. Nice job with your report.

Thank you for commenting on my post.

Apr 30, 2014 07:15 PM #4
Rainmaker
5,618,044
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Relocation families will appreciate your area market reports. Have a most productive spring.

Apr 30, 2014 10:50 PM #5
Rainmaker
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Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Travis

The 16% increase in residential sales in Alabama shows a strong real estate market.

Good luck and success.

Lou Ludwig

May 01, 2014 11:54 AM #6
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Travis "the SOLD man" Parker; Associate Broker

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