SELLER-FRIENDLY MARKET EXPECTED TO CONTINUE
The winter months typically see a slowdown in existing home sales. However, the continuous record-low mortgage interest rates are extending the home purchase season. Mortgage purchase applications increased by 23.5% in October compared to this time last year. It’s shaping up to be one of the best winter sales years ever, with seller-friendly trends like rising home prices and quick-selling homes.
What's selling quickly? REALTORS® say move-in ready homes are in the most demand. Houses that don't require repairs and those that offer in-demand amenities such as extra space, outdoor areas, privacy, home offices, and learning areas are going fast. Demand for these amenities resulted from more people working remotely and learning at home due to the Coronavirus.
Numbers for October 2020 indicate 1,911 homes sold in the Central Alabama residential real estate market; this is a 20.42% increase from 1,587 closings reported for the same period in 2019. The average price for closed sales was $274,295, which is an increase of 15.74% compared to a year ago.
Although the average days-on-market (DOM) ticked up slightly to 35 days for the Central Alabama market, existing homes are selling twice as fast as earlier this year when the average DOM was 79 days in January 2020. Existing homes also continue to sell at 98.81% of the listing price on average.
BAR and GALMLS provide home sales data for the Central Alabama market, including Jefferson, Shelby, Talladega, Coosa, St. Clair, Blount, Bibb, Chilton, Calhoun, Clay, Cleburne, and Randolph counties.
Click here for additional data.