Alabama Residential Quarterly Report: "4th Quarter Sales Highest Since 2007"
Reprinted with the permission of the Alabama Center for Real Estate (ACRE)
Alabama residential sales during the fourth quarter continued to gradually improve, up 7.5 percent compared to the same period a year earlier. The fourth quarter represents the best performing quarter in 2014 and an improvement over the 3.3 percent growth experienced in the third quarter.
Total sales of 10,351 units represent the best fourth quarter since 2007 (11,343 units). With that said, fourth quarter sales are still 26.1 percent (was 25.2 percent last quarter) below the quarterly peak established in 2005 when 14,016 units were sold.
Supply: The statewide housing inventory average during the fourth quarter was 32,303 units, a decrease of 0.5 percent from the same period in 2013 and 15.8 percent below the fourth quarter peak in 2010 (38,360 units). There were 9.4 months of housing supply (8 months considered equilibrium during 4th quarter) in the fourth quarter 2014, representing a favorable decline of 7.5 percent from the same period last year (4Q). Historical data indicates that the fourth quarter inventory-to-sales ratio in 2014 decreased 27.7 percent from the 5-year average (12.0 months) and decreased 18.1 percent from the 3-year average.
Demand: Historical data indicates that fourth quarter sales in 2014 increased by 16.9 percent from the most recent 3-year average ('11-'13) and 17.1 percent from the 5-year quarterly average ('09-'13).
Pricing: The statewide median sales price during the fourth quarter was $130,122, an increase of 0.9 percent from the same quarter in 2013. Historical data indicates that fourth quarter median price in 2014 increased by 3.8 percent from the most recent 3-year average and 3.1 percent from the 5-year quarterly average ('09-'13).
Click here to view or print the full quarterly report.