Alabama statewide residential sales during the 2nd quarter of 2012 were 9.7 percent higher than the same period in 2011. Year-to-date (YTD) through June, sales are up 10.0 percent from 2011. June residential sales in Alabama experienced a growth rate of 1.6 percent when compared to June 2011.
June represents the twelfth consecutive month that Alabama home sales have improved when compared to the same month from the prior year. Although at a slower pace, Alabama’s residential inventory also continues to shrink and that is favorable news for the market.
Supply: The statewide housing inventory in June was 34,458 units, a decrease of 10.2 percent from June 2011 and 16.9 percent from the month of June’s peak in 2008 (41,443 units).
There was 9.0 months of housing supply (6 months considered equilibrium) in June 2012 versus 10.2 months of supply in June 2011, a respectable decline of 11.6 percent.
June inventory in Alabama experienced a .1 percent decrease when compared to the prior month. Historical data indicates that June inventory on average (’07-’11) traditionally increases from the month of May .3 percent.
Demand: In June, Alabama residential sales outperformed the US market which showed an increase of 4.5 percent from the prior year (June 2011), according to the National Association of REALTORS (NAR). NAR also reported that the South region sales were up 5.5 percent from last June. Investors accounted for 19 percent of nationwide sales while 29 percent were all-cash sales and 32 percent were first-time home buyers (40% in typical market).
June statewide residential sales reflected zero growth from the prior month. This hints of perhaps caution ahead as historical data indicates that June sales, on average (’07-’11), increase from the month of May by 4.8 percent.
In comparison, US sales declined 5.4 percent from last month while the South region slipped 4.4 percent from the prior month (May 2012).
Pricing: The statewide median selling price in June was $125,921, an increase of .1 percent from last June and the fourth increase over the last nine months. In contrast, this figure represents a decrease of 1.0 percent when compared to the prior month. Historical data (’07-’11) indicates that the June median selling price traditionally increases from the month of May by 2.8 percent. Nationally, NAR says that distressed homes – foreclosures and short sales sold at deep discounts – accounted for 25 percent of June sales (13 percent were foreclosures and 12 percent were short sales), compared with 25 percent in May and 30 percent in June 2011. Foreclosures typically sold for an average 18 percent below market price in June, while short sales were discounted 15 percent.