Sales: According to the Multiple Listing Service of the Shoals Area Association of Realtors, Shoals area residential sales totaled 121 units during February, up 12 percent from the same month in 2016. Another resource to review is the Annual Report.
For all Shoals-area real estate data, click here.
Forecast: February’s 121 home sales were seven units or 6 percent below the Alabama Center for Real Estate’s monthly forecast. ACRE’s 2017 sales forecast through February projected 209 closed transactions, and actual closed sales were at 206.
Supply: Shoals area housing inventory totaled 964 units, a decrease of 1.4 percent from February 2016. Inventory has declined 16 percent from the February peak of 1,149 units in 2010.
The inventory-to-sales ratio in January was 8 months of housing supply, down 30 percent from February 2016. Restated, at the February sales pace, it would take 8 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months during February.
Demand: February sales increased 42 percent from the prior month. Historical data from 2012-16 indicate sales typically increase 13 percent from January to February.
Pricing: The Shoals area median sales price in February was $133,000, a 17 percent increase from $113,500 in February 2016. The median sales price was unchanged from the prior month. This direction contrasts with historical data indicating that the February median sales price on average (2012-16) decreases by 11 percent from January. 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 the housing expansion to continue, albeit at a more moderate pace than last year given continued pressure on affordability,” said Fannie Mae Chief Economist Doug Duncan. “Depressed inventory, particularly in the more affordable segments, will likely constrain sales and push home price gains that outpace income growth. A faster pace of monetary tightening, unless accompanied by a stronger increase in household income, also poses downside risk to housing.”
Click here to generate more graphs from the Shoals February Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.