Sales: According to the Tuscaloosa Association of Realtors, August home sales in the area increased 5.5% year-over-year (Y/Y) from 290 to 306 closed transactions. Following seasonal trends, sales decreased 15.5% from July. Sales are up 15.7% year-to-date. Two more resources to review: Quarterly Report and Annual Report.
For all Tuscaloosa-area housing data, click here.
Inventory: August listings (434) increased 4.6% from July and declined 36.1% from one year ago. Months of supply (inventory to sales ratio) also decreased from 1.9 to 1.2, reflecting a market where seller’s generally have elevated bargaining power.
Pricing: The median sales price in August was $241,048, an increase of 12.4% from one year ago and an increase of 0.5% from July. 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 August averaged 34 days on the market (DOM), 16 days faster than August 2020.
Forecast: August sales were 3 units, or 0.9%, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 309 sales for the month, while actual sales were 306 units. ACRE forecast a total of 2,400 residential sales year-to-date, while there were 2,473 actual sales through August, a difference of 3%.
New Construction: The 27 new homes sold represent 8.8% of all residential sales in the area in August. Total sales decreased 22.9% year-over-year. The median sales price was $299,900, an increase of 16.8% from one year ago and an increase of 7.7% from July.
NAR Commentary: According to the National Association of Realtors (NAR), existing home sales nationwide decreased in August, down 2% from July (seasonally adjusted annual rate). August sales were also down 1.5% from one year ago. The median sales price for existing homes was $356,700, rising 14.9% year-over-year and marking 114 consecutive months of year-over-year gains. Rising home prices are largely a result of low housing inventory amid sustained demand. Supply retreated in August, down 1.5% from July 2021 and is down 13.4% from one year ago. August’s 2.6 months of supply was unchanged from July and down 13.3% from 3.0 in August 2020.
Lawrence Yun, chief economist for NAR said, “Sales slipped a bit in August as prices rose nationwide. Although there was a decline in home purchases, potential buyers are out and about searching, but much more measured about their financial limits, and simply waiting for more inventory.”
Yun also discussed current market conditions and home prices saying, “High home prices make for an unbalanced market, but prices would normalize with more supply.”
ACRE Commentary: Home sales in Alabama increased year-over-year (Y/Y) in August, rising 3.9% (seasonally unadjusted). Sales decreased 5.9% month-over-month, following historical trends as a small decline is expected from July to August. Sales are up 15.3% year-to-date, with another record year for home sales likely in 2021.
Home price growth is moderating somewhat with the statewide median sales price gaining 6.6% Y/Y in August, down from an average of 12.3% Y/Y during January-July 2021. The state’s housing supply increased slightly (0.2%) from July, but listings are down 24.7% from one year ago. With sustained demand and rising inventory, months of supply increased from 1.5 in July to 1.6 in August. Listings are also expected to gradually increase in the coming months with higher home prices bringing more potential sellers to the market.
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 August 1 – 31, 2021. Thus, the performance represented is historical and should not be used as an indicator of future results.