March home sales in Tuscaloosa up steeply from previous month

March home sales in Tuscaloosa up steeply from previous month
The Tuscaloosa median home sales price in March was $177,445, an increase of 4.4 percent from one year ago. (iStock)

Sales: According to the  Tuscaloosa Multiple Listing Service, Tuscaloosa-area residential sales totaled 248 units during March, up one unit from 247 sales in the same month a year earlier. March sales were up 63.2 percent compared to 152 sales in February. Results were 19.7 percent above the five-year March average of 207 sales. Two more resources to review: Quarterly Report and Annual Report.

For all Tuscaloosa-area home sales data, click here.

Inventory: Total homes listed for sale in the Tuscaloosa area during March were 832 units, a decrease of 3.1 percent from March 2018’s 859 units and an increase of 4.3 percent from February 2019’s 798 units. March months of supply totaled 3.4 months, a decrease of 3.5 percent from March 2018’s 3.5 months of supply. March months of supply decreased 36.1 percent from February’s 5.3 months of supply.

Pricing: The Tuscaloosa median sales price in March was $177,445, an increase of 4.4 percent from one year ago and an increase of 1.5 percent from the prior month. 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. The average number of days on the market (DOM) for homes sold during March was 55 days, down 17.9 percent from 67 days in March 2018.

Forecast: March sales were 17 units, or 7.4 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 231 sales for the month, while actual sales were 248 units. ACRE forecast a total of 563 residential sales in the Tuscaloosa area year-to-date, while there were 539 sales through March.

ACRE’s statewide perspective: Statewide residential sales in February increased 10.9 percent year-over-year from 3,807 to 4,222 closed transactions. Year-to-date sales increased 6.4 percent from 2018. Home price appreciation in the state continued to climb, but at a slower pace, as the median sales price in February increased 3 percent year-over-year from $152,771 to $157,319. The statewide median sales price is also up 4.2 percent year-to-date. Although nationwide inventory levels are trending upward, Alabama’s residential listings decreased 8.9 percent from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and in the early months of 2019. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during February spent an average of 99 days on the market, an improvement of 27 days from February 2018.

NAR’s national perspective: During February, total existing-home sales nationwide declined 2.2 percent from approximately 319,000 closed transactions one year ago to 312,000 currently. The nationwide median existing-home price increased 3.6 percent in February, marking 84 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “It is very welcoming to see more inventory showing up in the market. For sustained growth, significant construction of moderately priced homes is still needed. More construction will help boost local economies and more home sales will help lessen wealth inequality as more households can enjoy in housing wealth gains.”

 

 

 

 

 

 

 

 

 

 

 

 

 

Click here to view the entire monthly report.

The Tuscaloosa Residential Monthly Report is developed in conjunction with the Tuscaloosa Association of Realtors to better serve West Alabama consumers.

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