Sales: According to the Wiregrass Multiple Listing Service, Wiregrass area residential sales totaled 70 units during January, 49 percent above the number recorded during the same month the previous year. January 2016 home sales totaled 47 units. Two more resources to review: Quarterly Report and Annual Report.
For all of the Wiregrass area housing data, click here.
Forecast: January sales were nine units and 14 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s 2016 sales forecast through January projected 61 closed transactions, while the actual sales were 70 units.
Supply: Wiregrass area housing inventory totaled 692 units, a decrease of 12 percent from January 2016. Inventory was down 0.4 percent from the prior month. This direction contrasts with historical data that indicate January inventory on average (2012-16) increases from December by 2 percent.
The inventory-to-sales ratio during January of 9.9 months of housing supply was down 41 percent from the same period a year earlier. Restated, at the January sales pace, it would take 9.9 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, so this indicates the continued presence of a buyer’s market.
Demand: January residential sales were down 17.6 percent from the prior month. Historical data indicate January sales on average (2012-16) decrease from December by 10 percent. The average days on market until a listing sold was 182 days, slower than January 2016’s 138 days.
Pricing: The Wiregrass area median sales price in January was $116,500, an increase of 26 percent from January 2016 ($92,000) and a 10 percent decrease from the previous month. This direction is consistent with historical seasonal data (2011-15) that reflect the January median sales price on average decreases from December by 14 percent. It should be noted that the differing sample size (number of residential sales of the comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss prices, as they will vary from neighborhood to neighborhood.
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 Wiregrass Region January Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.