Alabama’s Fastest Selling Markets

Alabama’s Fastest Selling Markets

Topics: Research, Residential Real Estate, Research

Markets: Athens (Limestone County), Birmingham Metro, Huntsville-Madison County, Mobile Area, Statewide, Talladega County

The Alabama Center for Real Estate created the following rankings based on average days on market (DOM) for closed transactions during April.

1. Huntsville - 43 days
2. Athens & Birmingham (tie) 48 days
3. Talladega County - 52 days
4. Mobile - 57 days
5. Tuscaloosa - 59 days

Statewide Average - 93 days

National Average - 58 days

 

Huntsville- With a DOM average of 43 days, Huntsville was Alabama’s fastest selling market during April. Residential markets in the Huntsville area now have 32 consecutive months of YoY improvement in average DOM, an impressive streak that started in September 2016. Mirroring statewide trends but to a greater degree, inventory was short during April as listings dropped 32.1 percent from one year ago. Inventory is also short in the north Alabama region as Decatur (down 30.7 percent), Athens (down 23.8 percent) and Marshall County (down 12.9 percent) all experienced inventory drops in April. In spite of low inventory, demand for housing in the Huntsville area remained strong as total sales in April improved 1.5 percent from April 2018. Home price appreciation continues to trend upwards as the median sales price in the Huntsville area during April increased 7.1 percent year-over-year (YoY) from $195,575 to $209,370, and is up 8.3 percent year-to-date. With 1.7 months of supply, Huntsville is the strongest seller’s market in the state, a factor contributing to rising home prices. Dollar volume is on the rise as it increased 5.7 percent in April from $151.8 million one year ago to $160.4 million currently.  

 

Athens- Driven in part by a strong new construction market, Athens tied with Birmingham for Alabama’s second fastest selling market in April with a DOM average of 48 days. Properties selling in April closed 22 days faster than the previous month, while the area’s year-to-date DOM average declined from 77 in 2018 to 57 in 2019, an improvement of 20 days. Average DOM in the Athens area has improved for 18 consecutive months, a streak that began in November 2017. Mirroring trends seen in the Huntsville market, inventory declined 23.8 percent YoY, extending the streak of YoY inventory declines to 45 months. Demand for housing in the area remained strong as April sales increased 28.5 percent from one year ago. With tight inventory and growing demand for housing in the area, it was not surprising to see the area’s median sales price grow 9.9 percent YoY, more than three times the state average of 3.2 percent. Dollar volume was up an impressive 44.1 percent from $33.1 million one year ago to $44.9 million during April, extending the streak of YoY dollar volume gains to 40 months, a streak that began in January 2016.

 

Birmingham- Residential properties selling in April averaged 48 days on the market, an improvement of four days from one year ago and an improvement of 2 days from the previous month. The area’s year-to-date (YTD) DOM average improved from 63 in 2018 to 51 in 2019, making it the fastest selling market in the state YTD. With April’s improvement, the Birmingham area now has 29 consecutive months of YoY decreases in average DOM, a streak that began in December 2016. Mirroring statewide trends but to a lesser degree, residential listings in the Birmingham metro area during April were down 7.4 percent from one year ago. Demand for housing, however, remained strong as sales were equal to one year ago, sustaining the record level of sales from 2018. With tight inventory and continued sales activity, it was not surprising to see home price appreciation in the area continue to trend upwards. Birmingham’s median sales price increased 13.2 percent YoY during April, more than four times the statewide average of 3.2 percent. Dollar volume also increased an impressive 11.5 percent YoY from $365.6 million in April 2018 to $407.8 million in April 2019, extending the area’s streak of YoY dollar volume gains to 15 months.   

 

Talladega County- Residential properties selling in April averaged 52 days on the market, an improvement of 55 days from one year ago and an improvement of 20 days from the prior month. Year-to-date, properties in Talladega County are selling 41 days, or 35.3 percent, faster than one year ago. With April’s improvement, average DOM has now improved for four consecutive months. Talladega County, however, differs from most of the state’s residential markets because inventory is rising slightly. April listings were up 2.2 percent from one year ago, while statewide listings declined 9.5 percent during the same period. Total sales were down 16 percent YoY, and the median sales price declined 3.1 percent during the same period. Dollar volume dropped 31.8 percent YoY from $9.3 million one year ago to $6.4 million currently.


Mobile- Alabama’s fifth fastest selling market during March saw major improvement in average DOM as it decreased 21 days from 78 to 57 days. Year-to-date, properties in the Mobile area are selling 20 days, or 22.5 percent, faster than one year ago. Inventory is also short in the area as listings declined 6.5 percent YoY during April, marking 66 consecutive months of YoY inventory declines going back to November 2013, the longest streak of YoY inventory declines in the state. While total residential sales dropped 4.7 percent YoY in April, median sales price increased 2.5 percent YoY, just below the statewide average of 3.2 percent. Dollar volume decreased 1.3 percent YoY from $74.8 million in April 2018 to $73.9 million in April 2019.   

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