Sales: According to the North Alabama Multiple Listing Service, Morgan County (Decatur) residential sales totaled 120 units during April, down 13 percent from the same month in 2016. Home sales in Morgan County during April 2016 totaled 138 units. Another resource to review is the Annual Report.
Click here for all Morgan County residential data.
Forecast: April sales were two units or 2 percent above the Alabama Center for Real Estate’s monthly forecast. ACRE’s 2017 sales forecast through April projected 405 closed transactions, while the actual sales were 448 units.
Supply: Morgan County area housing inventory totaled 693 units, a decrease of 11 percent from April 2016. Inventory was 8 percent above the prior month. Historical data indicate April inventory on average (2012-16) increases from March by 1.3 percent.
The inventory-to-sales ratio during April was 5.8 months of housing supply. Restated, at the April sales pace, it would take 5.8 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months during April. In April 2016, the supply stood at 5.6 months. The months-of-supply figure has declined 63 percent from the April peak reached in 2011 (15.8 months), which is encouraging news.
Demand: April residential sales slipped 9 percent from the prior month. Historical data indicate April sales on average (2012-16) increase from March by 8.5 percent. The average days on the market until a listing sold was 106 days, down 18 percent from the previous April.
Pricing: The Morgan County median sales price during April was $118,500, which is 10.6 percent below April 2016’s $132,500 and 9 percent below the March median sales price. Differing sample size from month to month can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood.
Industry perspective: “The Home Purchase Sentiment Index returned to its longer-term trend line after reclaiming ground lost last month. This is aligned with our market forecast of about 3 percent sales growth in 2017,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Historically strong inflation-adjusted house price gains are tempering consumer sentiment, whereas consumer optimism regarding the ease of getting a mortgage reached a survey high. On balance, housing continues on a gradual growth track.”
Click here to generate more graphs from the Morgan County April Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.