Sales: According to the Multiple Listing Service of the Shoals Area Association of Realtors, Shoals area residential sales totaled 85 units during January, down 2.3 percent from the same period in 2016. Another resource to review is the Annual Report.
For all Shoals-area real estate data, click here.
Forecast: January’s 85 home sales were 10 units or 10 percent below the Alabama Center for Real Estate’s monthly forecast. ACRE’s sales forecast for January projected 95 closed transactions, and actual closed sales were at 85.
Supply: Shoals area housing inventory totaled 964 units, a decrease of 1.6 percent from January 2016. Inventory has declined 16 percent from the January peak of 1,146 units in 2010.
The inventory-to-sales ratio in December was 11.3 months of housing supply, unchanged from January 2016. Restated, at the January sales pace, it would take 11.3 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months during January.
Demand: January sales decreased 34 percent from the prior month. Historical data from 2012-16 indicate sales typically decrease 17 percent from December to January.
Pricing: The Shoals area median sales price in January was $133,000, an 11 percent increase from $120,000 in January 2016. The median sales price increased 9 percent from the prior month. This direction is consistent with historical data indicating that the January median sales price on average (2012-16) increases by 3.5 percent from December. Pricing can fluctuate from month to month as the sample size of data (closed transactions) is subject to seasonal buying patterns. ACRE recommends contacting a local real estate professional for additional market pricing information.
Industry perspective: “We expect housing to remain resilient and continue its recovery in 2017, with affordability standing out as the industry’s greatest obstacle, particularly for first-time homeowners,” said Fannie Mae Chief Economist Doug Duncan. “Demographic factors, however, are positive. Our research shows that older millennials have begun to buy homes and close the homeownership attainment gap with their predecessors.”
Click here to generate more graphs from the Shoals January Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.