Alabama’s Housing Market During the COVID-19 Pandemic

By editor2 | June 3, 2020 |

There isn’t an industry across the country that hasn’t been significantly altered, or even changed completely, by the COVID-19 pandemic. This ongoing crisis has businesses worrying about shutting their doors for good, millions of Americans out of work, and families and individuals terrified about what’s to come.

Hopefully, this will soon pass and people can start getting back to living their lives, with at least some form of normalcy. In Alabama, though the majority of the state is under quarantine and sheltering in their homes, there are still people hoping to buy and sell their homes in the upcoming future. Global pandemic or not, people still want to sell homes, they still want to buy homes, and they want to continue upgrading their homes. In fact, 56% of homeowners plan on buying living room furniture in the next two years.

New housing starts in Alabama were up 23.2% when the coronavirus pandemic hit the U.S., which was higher than the national average of 18.7%.

“Mark sales are looking better than I thought they would,” said Stuart Norton, research coordinator for the Alabama Center for Real Estate (ACRE) at the University of Alabama. “We are in a wait-and-see phase. Prices should be steady or just continue their current trends because inventory is so tight.”

So far in 2020, the average time it takes to sell a home in Alabama — from listing through closing — is about 97 days. So it takes around 62 days to get an offer and then the typical 35 days to close. Compared to Washington, D.C., 50% of homes listed in the DC Metro market did not sell the first time they were listed.

According to List With Clever, the best month to sell a home in Alabama is August because it takes about 51 days to get an offer, which is 11 days faster than the annual average. February, on the other hand, is the worst month to sell, with an average of 85 days on the market. February is also the worst month to sell in terms of price, as well, with a median sale price of $180,000. May represents the best month to sell in terms of profit, with a median sale price of $214,000.

It’s important for Alabama homeowners and future buyers to do plenty of research and fully understand not only the housing market but all the other aspects involved. Approximately 52% of homeowners don’t have a clear understanding of their home insurance coverage.

If you’re curious about listing your home and trying to sell, even during these wild times, it’s best to take advantage of the following tips:

Pay attention to the market — This is extremely important in order to give you a great shot at earning a fair return on your home. Being able to time the housing market can make as much as a $30,000 price difference in how much you sell your property for (and how long it stays on the market).
Consult with a real estate professional — Even if you do plenty of research and consider yourself very knowledgeable on the housing market and buying/selling process, you’re still going to need some professional assistance. Working with a real estate agent is going to help tremendously. They’ll offer tips and advice every step of the way and know how to work with all kinds of buyers.
Price your home competitively — Sure, making the most money possible sounds great, but it’s not always feasible. If you list your home for too much, it will just sit on the market for eternity. Competitively price your home, yes, but remember things are tough right now for everyone, so make sure you’re taking that into account.