Sales: According to the Multiple Listing Service of the Shoals Area Association of Realtors, Shoals area residential sales totaled 145 units during April, up 6 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: April’s 145 home sales were eight units or 5 percent above the Alabama Center for Real Estate’s monthly forecast. ACRE’s 2017 sales forecast through April projected 497 closed transactions, and actual closed sales were at 507.
Supply: Shoals area housing inventory totaled 955 units, a decrease of 3.5 percent from April 2016. Inventory has declined 21 percent from the April peak of 1,206 units in 2012.
The inventory-to-sales ratio in March was 6.6 months of housing supply, down 10 percent from April 2016. Restated, at the April sales pace, it would take 6.6 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 sales decreased 7 percent from the prior month. Historical data from 2012-16 indicate sales typically increase 8.6 percent from March to April.
Pricing: The Shoals area median sales price in April was $128,500, a 3 percent increase from $124,950 in April 2016. The median sales price was 16 percent above the prior month. This direction is consistent with historical data indicating that the April median sales price on average (2012-16) increases by 0.1 percent from March. 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: “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 Shoals April Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.