Sales: According to the North Alabama Multiple Listing Service, Morgan County (Decatur) residential sales totaled 144 units during May, up 4 percent from the same month in 2016. Home sales in Morgan County during May 2016 totaled 138 units. Another resource to review is the Annual Report.
Click here for all Morgan County residential data.
Forecast: May sales were one unit or 0.69 percent below the Alabama Center for Real Estate’s monthly forecast. ACRE’s 2017 sales forecast through May projected 550 closed transactions, while the actual sales were 592 units.
Supply: Morgan County area housing inventory totaled 693 units, a decrease of 15 percent from May 2016. Inventory was 3.5 percent below the prior month. Historical data indicate May inventory on average (2012-16) increases from April by 0.4 percent.
The inventory-to-sales ratio during May was 4.6 months of housing supply. Restated, at the May sales pace, it would take 4.6 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months during May. In May 2016, the supply stood at 5.7 months. The months-of-supply figure has declined 63 percent from the May peak reached in 2009 (12.6 months), which is encouraging news.
Demand: May residential sales rose 20 percent from the prior month. Historical data indicate May sales on average (2012-16) increase from April by 3.5 percent. The average days on the market until a listing sold was 119 days, up 15 percent from the previous May.
Pricing: The Morgan County median sales price during May was $121,000, which is 7 percent below May 2016’s $129,700 and 2 percent above the April 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: “Once again, our full-year growth forecast remains intact as the economy grinds along, with the prospect of material policy changes appearing to be delayed,” said Fannie Mae Chief Economist Doug Duncan. “We expect consumer spending to resume its role as the biggest driver of growth in the second quarter amid improvements in the labor market. Positive demographic factors should continue to reshape the housing market, as rising employment and incomes appear to be positively influencing millennial homeownership rates. However, the tight supply of homes for sale continues to act as both a boon to home prices and an impediment to affordability.”
Click here to generate more graphs from the Morgan County May Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.