Housing market on the decline
The Alabama housing market declined significantly in September after a strong showing in August, according to the Alabama Real Estate Research and Education Center at The University of Alabama.
Existing home sales in Alabama dropped to 4,766 in September, a 17.8 percent decline from August. Compared to September ‘05, sales are down 12 percent. Through the first nine months of 2006, existing home sales are still slightly ahead of last year with 45,855 homes sold year-to-date in 2006, compared to 45,742 homes sold through the first nine months of 2005.
The average selling price in September dropped to $158,076, which is still $2,123 more than the average price in September of last year. Year-to-date existing home prices in Alabama remain considerably higher than 2005’s year-to-date prices, according to the center. Through the first nine months of 2005, existing home prices averaged $146,994, compared to $155,382 through September of ‘06.
The inventory of previously owned homes listed on the market in Alabama rose again in September to 36,414 units, a 2.9 percent increase from August. There were more than 9,000 more homes listed this September than in September 2005.
At the current rate of sales, this represents a 7.6 month supply of homes, a significant increase from the six-month supply in August and the five-month supply of homes in September 2005, according to the center.