Sales: According to the Wiregrass Multiple Listing Service, Wiregrass area residential sales totaled 84 units during April, 7 percent above the number recorded during the same month the previous year. April 2016 home sales totaled 78 units. Two more resources to review: Quarterly Report and Annual Report.
For all of the Wiregrass area housing data, click here.
Forecast: April sales were three units and 3 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s 2017 sales forecast through April projected 299 closed transactions, while the actual sales were 315 units.
Supply: Wiregrass area housing inventory totaled 743 units, a decrease of 3 percent from April 2016. Inventory was up 5 percent from the prior month. This direction is consistent with historical data that indicate April inventory on average (2012-16) increases from March by 2 percent.
The inventory-to-sales ratio during April of 8.8 months of housing supply was down 10 percent from the same period a year earlier. Restated, at the April sales pace, it would take 8.8 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.
Demand: April residential sales were down 4.5 percent from the prior month. Historical data indicate April sales on average (2012-16) decrease from March by 6.3 percent. The average days on the market until a listing sold was 149 days, faster than April 2016’s 161 days.
Pricing: The Wiregrass area median sales price in April was $149,450, an increase of 25 percent from April 2016 ($119,750) and a 28 percent increase from the previous month. This direction contrasts with historical seasonal data (2012-16) that reflect the March median sales price on average decreases from March by 8 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: “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 Wiregrass Region April Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.