Home sales in Alabama rose sharply in June as buyers emerged from the coronavirus block to take advantage of low interest rates.
According to the Alabama Association of Realtors, home sales in June in May rose 32.5% over May and 18.7% year over year. According to the Alabama Center for Real Estate, home sales have risen by 3.5% since the beginning of the year, despite the blockage, due to pent-up demand.
The numbers may show what some analysts thought – potential home buyers spent their time in COVID-19 Lockdown researching potential online purchases. In the first week of April, listed houses across the country fell 27.1% yoy. At a time of year when this category usually increases sharply from March to April. However, the 3D home tours in April that allow virtual viewing of real estate have increased by more than 400% since the pandemic started.
However, there is some uncertainty for the rest of 2020. As the pandemic continues, sales activity could decline in the coming months. However, the June numbers are consistent with national trends. According to the National Association of Realtors, home sales rose 20.7% nationwide after three months of decline.
At the same time, the number of properties for sale before the pandemic was low and will remain so.
According to analysts, listings decreased by 24.7% year on year, which means that selling prices continue to trend higher. The median retail price in Alabama of $ 193,977 represents an increase of 7.1% over the previous year and 4.8% over May. Sellers have increased their bargaining power as the monthly supply has dropped from 3.6 to 2.3.
Home sales contribute about 15% to the economy and are an indicator of the short-term impact of the pandemic.