Sales: According to the North Alabama Multiple Listing Service, Marshall County home sales in November were 1.5 percent above November 2015 at 65 sales for the month. Year-to-date sales in Marshall County were 6 percent above the same period in 2015. Another resource to review is the Annual Report.
Click here to check out all Marshall County housing data.
Forecast: November sales were three units or 5 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s year-to-date sales forecast through November projected 768 closed transactions, while the actual sales were 792 units, a favorable difference of 3 percent.
Supply: Marshall County housing inventory totaled 533 units, a decrease of 8.3 percent from November 2015. November inventory decreased 3 percent from October. This direction is consistent with historical data that indicate November inventory on average (2011-15) decreases from October by 2.6 percent.
The inventory-to-sales ratio has improved to 8.2 months of supply. Restated, at the November sales pace, it would take 8.2 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months during November, so continued improvement would be welcome news for market participants.
Pricing: The Marshall County area median sales price in November was $115,000, a decrease of 6 percent from November 2015’s $122,500. The November median sales price was 5.5 percent above the October median sales price. Historical data indicate that the November median sales price on average (2011-15) increases from October by 5.1 percent. Pricing can fluctuate from month to month as the sample size of data is subject to seasonal buying patterns. ACRE recommends contacting a local real estate professional for additional market pricing information.
Industry perspective: “The HPSI (home purchase sentiment index) fell in October for the third straight month from its record high in July, reaching the lowest level since March. Recent erosion in sentiment likely reflects, in part, enhanced uncertainty facing consumers today,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Since July, more consumers, on net, have steadily expected mortgage rates to rise and home price appreciation to moderate. Furthermore, consumers’ perception of their income over the past year deteriorated sharply in October to the worst showing since early 2013, weighing on the index. However, this component of the HPSI is volatile from month to month, and the firming trend in wage gains from the October jobs report, if sustained, may foreshadow an improving view in the near future.”
Click here to generate more graphs from the Marshall County November Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.