The Alabama Center for Real Estate’s 2019 residential sales forecast performed quite well (accurate to within 6.5% statewide) considering the challenges faced at the end of 2018. After the Federal Reserve raised interest rates throughout 2018, few anticipated the rate cuts that were experienced in 2019, which had a significant impact on residential sales activity in both Alabama and the United States. Also, while some were calling for a recession in 2019, economic growth continued and unemployment remained low, also contributing to record sales volume. The 61,072 closed transactions in 2018 finally surpassed the pre-recession peak reached in 2006, and that mark was set even higher in 2019 with 64,278 closed sales statewide.
ACRE’s 2020 residential sales forecast is in the works. It will provide a projection of monthly sales activity for 25 markets across the state including 15 metro and 10 non-metro areas. The forecast will be released at the upcoming ALAres conference.
The 2019 forecast was accurate to within 6.45% of closed sales activity. See below for a summary of forecast results in Alabama’s metro areas.