The Alabama Center for Real Estate created the following rankings based on year-over-year growth in median sales price during October 2019:
Statewide Average: 10.1%
National Average: 6.2%
Lake Martin Area: Alabama’s strongest market for home price appreciation in October was the Lake Martin area. Median sales price increased 61.4% to $303,500 when compared to last year’s median price of $188,000. Additionally, median sales price in the area is up 7.7% year-to-date (YTD). One contributing factor of rising prices was the decrease in listings, which dropped 7.3% year-over-year. October sales spent an average of 178 days on the market, an increase of 24 days from 154 in October 2018. The area currently has 8.5 months of supply, down slightly from 8.8 months one year ago.
Gadsden Area: The Gadsden area had the second highest home price appreciation in the state during the month of October. Last October’s median sales price of $108,950 was eclipsed by 29.9% when compared to this year’s total of $141,500. Similar to statewide inventory trends, the Gadsden area inventory is on the decline. This year’s total units listed, 403, has fallen by 91 units (-18.4%) when compared to one year ago. The market currently has 5.7 months of supply, which is 0.3 months below equilibrium. This small shortage of supply creates a market where sellers generally have elevated bargaining power.
Huntsville Area: The Huntsville area saw 17.5% median price appreciation when compared to the same time last year, making Huntsville third for price growth during October. Median sales price this month came to a total of $252,429, a 17.5% increase when compared to October of 2018’s total of $214,850. Year-to-date, median sales price in the area is up 9.4%. This significant jump in price can be partially attributed to the 27% drop in inventory when compared to last year. Homes in this area are also selling at an average of 19 days faster when compared to October 2018. The Huntsville area currently has 1.7 months of supply, reflecting a seller’s market in the area. October’s 1.7 months of supply is 69.6% below the 5-year average of 5.4 months of supply.
Cullman Area: The Cullman area comes in fourth this month on our list of markets with the strongest price growth in October. Home prices in this area grew 15.7% when compared to the same time last year when median sales price in the area was $135,700. Additionally, median sales price in the area is up 6.7% YTD. Average days on market during October decreased 15.4% Y/Y from 104 to 88. Year-to-date, properties are selling 9 days faster in the Cullman area (120 vs. 111). Mirroring regional trends, inventory is tight as October listings declined 9.1% Y/Y from 505 one year ago to 459. The Cullman area currently has 4.8 months of supply, reflecting a seller’s market in the area.
Decatur Area: The Decatur area also saw significant price growth this month, landing in fifth place for the month of October. Median sales price was up 14.8% to $166,500 when compared to October of 2018’s median price of $144,950. Following statewide trends, inventory decreased by 93 units (21.2%) from one year ago. The Decatur area currently has 2.4 months of supply, down 29.4% from one year ago. The area’s inventory-to-sales ratio is 3.6 months below equilibrium, creating a market where sellers typically have elevated bargaining power.
