Tuscaloosa-area real estate market continues growth in December

Sales: According to the Tuscaloosa Association of Realtors, December home sales in the area increased 47.6% year-over-year (Y/Y) from 210 to 310 closed transactions, marking seven consecutive months of Y/Y gains. Following seasonal trends, sales increased 32.5% from November and are now up 17.7% year-to-date. Two more resources to review: Quarterly Report and Annual Report.

For all Tuscaloosa-area housing data, click here.

Inventory: Homes listed for sale decreased 27.8% Y/Y from 753 listings one year ago to 544 in December. Months of supply dropped from 3.6 to 1.8, reflecting a market where sellers generally have elevated bargaining power.

Pricing: The median sales price in December was $209,950, an increase of 9.1% from one year ago and a decrease of 2.4% from November. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood.

Homes sold in December averaged 43 days on the market (DOM), 18 days faster than December 2019.

Forecast: December sales were 105 units, or 51.2%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 205 sales for the month, while actual sales were 310 units. ACRE forecast a total of 2,867 residential sales year-to-date, while there were 3,243 actual sales through December, a difference of 13.1%.

New Construction: The 46 new homes sold represented 14.8% of all residential sales in the area in December. Total sales increased 17.9% year-over-year. The median sales price was $254,900, an increase of 8.2% from one year ago and an increase of 16.6% from November.

Click here to view the entire monthly report.

The Tuscaloosa Residential Monthly Report is developed in connection with the Tuscaloosa Association of Realtors.

Editor’s Note: All information in this article reflects data provided to the Alabama Center for Real Estate for the time period December 1 – 31, 2020. Thus, the performance represented is historical and should not be used as an indicator of future results, particularly considering the impact of COVID-19 on the housing market.

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