Photo credit: Special to ACRE
Alabama sales up, market more balanced during 2017's opening months
Topics: Residential Real Estate
When examining the residential real estate market for any area, it is always important to note that month-to-month numbers do not always reflect the overall health of the market.
That is why the quarterly and annual reports for a particular area are important. They are more reflective of the true health of the real estate market.
Take Alabama's real estate market for instance.
During the first quarter of 2017, home sales rose 8.5 percent compared to the home sales during the first quarter of 2016.
There were 12,189 homes sold this year from January to March, compared to 11,230 last year.
Home pricing also increased to a median sales price of $138,530, up 6 percent from a year ago.
Overall, the market in Alabama during the first quarter is much more balanced than previous years at 6.8 months of housing supply. Restated, at the current pace of sales, it would take approximately 6.8 months for the market to absorb the 26,897 homes listed during the first quarter. The market is considered to be balanced at around 6 months of supply.
Last year, there were 7.9 months of housing supply during the first quarter, and the average from 2012-16 was 10 months of housing supply.