Alabama’s Fastest Selling Markets (September 2019)
Topics: Residential Real Estate
The Alabama Center for Real Estate created the following rankings based on average days on market (DOM) for closed transactions during September 2019.
- 1. Huntsville: 34 days
- 2. Birmingham: 40 days
- 3. Athens: 43 days
- 4. Calhoun County: 53 days
- 5. Mobile: 56 days
Statewide Average: 82 days
National Average: 62 days
Huntsville- With an average DOM of 34 days, the Huntsville area was Alabama’s fastest selling market in September. The area now has 37 consecutive months of Y/Y improvement in average DOM, an impressive streak that began in September 2016. The area’s YTD DOM average improved from 60 in 2018 to 46 in 2019, making it the second fastest selling market in the state YTD behind Birmingham. Mirroring statewide trends but to a greater degree, residential listings in the Huntsville metro area during September were down 25.5% from one year ago. Demand for housing was especially strong as sales increased 14.6% Y/Y from 654 to 863 closed transactions. While the area has, arguably, the tightest inventory in the state, and continued sales growth (up 4.4% YTD), it was not surprising to see home price appreciation in the area continue to trend upwards. Huntsville’s median sales price increased 6.6% Y/Y during September, just behind the statewide average of 7%. Dollar volume is rising fast as it increased 19% Y/Y from $147.7 million in September 2018 to $166 million in September 2019.
Birmingham- With an average DOM of 40 days, the Birmingham area was Alabama’s second fastest selling market in September. Residential markets in the area now have 34 consecutive months of Y/Y improvement in average DOM, a streak that goes back to December 2016. Mirroring statewide trends but to a lesser degree, inventory was tight during September as listings declined 4.8% from one year ago. Inventory shortages in Alabama’s largest residential market, however, are quite different from the second largest market, the Huntsville area. Inventory declines of 25-30% are the new normal in the Huntsville area and larger north Alabama region. On the demand side, total residential sales in the Birmingham area increased 10.9% Y/Y, building upon the growth seen in 2018, a record year for residential sales activity in the state. After a strong September, sales are now up 3.2% YTD. Home price appreciation regained momentum as the median sales price in the Birmingham area increased 3.8% Y/Y, and the market is now up 5.5% YTD. With 3.6 months of supply, Birmingham is a seller’s market, a factor contributing to rising home prices. Dollar volume is on the rise as it increased 14.6% in September from $322.3 million one year ago to $369.2 million currently.
Athens- Driven in part by a strong new construction market, Athens was Alabama’s third fastest selling market in September with a DOM average of 43 days. Properties sold in September closed 4 days slower than one year ago, while the area’s year-to-date DOM average improved from 63 in 2018 to 52 in 2019. Average DOM in the Athens area has improved Y/Y for 23 consecutive months, a streak that began in November 2017. Mirroring trends seen across the north Alabama region, inventory declined 29.8% Y/Y, extending the streak of Y/Y inventory declines to 50 months. While the total number of closed transactions decreased 10.6% Y/Y in September, sales are up 9.9% YTD. With tight inventory and growing demand for housing in the area, the area’s median sales price increased 28.1% Y/Y. Year-to-date, the area has the second fastest home price appreciation in Alabama’s metro areas (10.4%), while the Gadsden area leads with 10.8% YTD. Dollar volume was up 3.6% from $36.5 million one year ago to $37.8 million during September, extending the streak of Y/Y dollar volume gains to 45 months, a trend that began in January 2016.
Calhoun County- Alabama’s fourth fastest selling market averaged 53 days on the market during September, an improvement of 14 days from one year ago. Year-to-date, properties in the area are selling eight days faster than in 2018. Total listings in the area declined 6.3% in September, extending the area’s streak of Y/Y inventory declines to 13 months. Of Alabama’s 14 metro areas*, only two experienced inventory gains in September (Lee County up 9.1%, Baldwin County up 2.8%). On the demand side, sales were especially strong in September increasing 16.9% Y/Y, and they are up 6.7% YTD. The area’s median sales price increased 7.4% from $129,900 to $139,450, while the YTD median sales price is up 1.9% from last year. Dollar volume is also on the rise as it increased 19.9% from $20.9 million one year ago to $25.1 million currently.
Mobile- Residential properties sold in September averaged 56 days on the market, an improvement of 6 days from one year ago. Year-to-date, properties in the area are selling 13 days faster than one year ago. Mirroring statewide trends, inventory is also short in the area as listings declined 12.4% Y/Y, extending the area’s streak of inventory declines to 71 months, the longest in the state. Total residential sales increased slightly (0.5%) in September, and the market is up 3.8% YTD. Home price appreciation was strong in September, increasing 8.3% Y/Y. It is now up 4.7% on the year (YTD), just behind the statewide average of 5%. Dollar volume increased 4.2% Y/Y from $65.7 million in September 2018 to $68.4 million in September 2019.