Top 5 Markets for Home Price Appreciation - May 2019
The Alabama Center for Real Estate created the following rankings based on median price appreciation in May 2019:
1. Montgomery Area - 21.0%
2. Cullman Area - 19%
3. Athens Area - 17%
4. Phenix City Area - 12.3%
5. Huntsville Area - 12.1%
- Statewide Average: 4.3%
National Average: 4.8%
Montgomery Area: Alabama’s strongest market for home price appreciation in May was the Montgomery area. Median sales price increased 21.9% to $174,900 when compared to last year’s median price of $143,450. Additionally, median sales price in the area is up 7.7% year-to-date (YTD). One contributing factor of rising prices can be the decreasing inventory levels in the area. Inventory levels have decreased 29.4% compared to the same time last year. With rising prices and declining inventory in the Montgomery area, it is not surprising that the area as a whole is a seller’s market with 3.6 months of supply during May.
Cullman Area: The Cullman area had the second highest home price appreciation in the state during the month of May. Last May’s median sales price of $139,500 was eclipsed by 19% when compared to this year’s total of $166,000. Additionally, median sales price in the area is up 4.4% YTD. Similar to statewide inventory trends, Cullman’s inventory is on the decline. This year’s total units listed, 481, has fallen over 5% when compared to last year. Homes in this area are also selling 5.3% faster when compared to the previous year. The market currently has 5.1 months of supply, 24.1% less than last year.
Athens Area: The Athens area (Limestone County) saw 16.9% median price appreciation when compared to the same time last year, making Athens Alabama’s third for price growth during May. Median sales price this month came to a total of $225,000, a 16.9% increase when compared to May of 2018’s total of $192,357. Year-to-date, median sales price in the area is up 12.2%, leading all of Alabama’s metropolitan areas. This significant jump in price can be attributed, in part, to the 20.6% drop in inventory when compared to last year. Homes in this area are also selling at an average of 24 days faster when compared to May 2018. The Athens area currently has 1.9 months of supply, reflecting similar market conditions to nearby Huntsville.
Phenix City Area: Phenix City, Alabama, located on the border of Alabama and Georgia, is tied for fourth this month on our list of fastest appreciating markets. Home prices in this area grew 11.9% when compared to the same time last year when median sales price in the area was $158,000. Additionally, median sales price in the area is up 8.7 percent YTD. While days on market was unchanged when compared to the previous year, inventory saw a drop of over 16%. This time last year there were 475 total homes listed for sale, while there are currently 398 listings. Phenix City currently has 3.2 months of supply, reflecting a seller’s market in the area.
Huntsville Area: The Huntsville area saw similar price growth as the Athens area this month. Median sales price was up 12.1% to $226,360 when compared to May of 2018’s median price of $201,985. Additionally, median sales price in the area is up 9.1 percent, which leads Alabama’s four largest metro areas (Birmingham, Huntsville, Mobile, Montgomery). Homes in this area are leaving the market an average of 6 days sooner this one year ago. Inventory took a drastic fall decreasing 26.1% since May of last year. And finally, the Huntsville area has 1.7 months of supply, currently the strongest seller’s market in the state.
CCIM 4Q19/1Q20 CRE Insights Report