Home sales in Alabama surged in June as buyers emerged from the coronavirus lockdown ready to take advantage of low interest rates.
According to the Alabama Association of Realtors, June home sales in the state were up 32.5% from May and 18.7% year-over-year. That means that home sales, even with the lockdown, are up 3.5% year-to-date, according to the Alabama Center for Real Estate, reflecting pent-up demand.
The numbers possibly show what some analysts thought — potential homebuyers spent their time in COVID-19 lockdown researching possible purchases online. During the first week of April, newly listed homes nationwide were down 27.1% year-over-year, at a time of year that category usually sees large increases from March to April. However, 3D home tours in April, which allow a virtual viewing of property, were up more than 400% since before the pandemic began.
Still, there is some uncertainty for the remainder of 2020. As the pandemic continues, sales activity could decline in the months ahead. But June's figures are consistent with national trends. Home sales nationally jumped 20.7% after three months of declines, according to the National Association of Realtors.
At the same time, the number of properties listed for sale was tight before the pandemic, and will remain that way.
Listings declined 24.7% year-to-year, which means sales prices are continuing to trend upwards, analysts say. The median Alabama sales price of $193,977 is an increase of 7.1% from one year ago and 4.8% from May. Sellers have elevated bargaining power, as months of supply dropped from 3.6 to 2.3.
Home sales contribute about 15% to the national economy and are an indicator of the short-term effect of the pandemic.
