Athens home sales hit May high, increase from 2016

Athens home sales hit May high, increase from 2016
The median sales price for Athens-area homes was up 19 percent in May from a year earlier. (iStock)

Click here to view or print the entire monthly report compliments of the ACRE Corporate Cabinet.

Sales: According to the North Alabama Multiple Listing Service, Athens/Limestone County residential sales totaled 165 units during May, an increase of 24 percent or 32 units above the same month in 2016. Home sales during May 2016 totaled 133 units. Two more resources to review: Quarterly Report and Annual Report.

For all Athens/Limestone County area housing data, click here.

Forecast: May sales were 14 percent or 20 units above the Alabama Center for Real Estate’s monthly forecast. ACRE’s 2017 sales forecast through May projected 583 closed transactions, while the actual sales were 647 units.

Supply: Athens/Limestone County housing inventory totaled 690 units, a decrease of 13 percent from May 2016. New-home inventory is down by 42 units year-over-year, while existing homes dipped by 48 units. May inventory was 6 percent above the prior month. This direction is consistent with historical data indicating that May inventory on average (2012-16) increases from April by 4.9 percent.

The inventory-to-sales ratio in May was 4.2 months of housing supply. Restated, at the May sales pace, it would take 4.2 months to absorb the current inventory for sale. This is a decrease of 29 percent from 5.9 months of supply in May 2016. The market equilibrium (balance between supply and demand) during May is considered to be approximately 6 months.

Demand: May residential sales were 20 percent above the prior month. This direction is consistent with historical data associated with May sales, which indicate a typical increase of 10 percent from April.

Pricing: The Athens/Limestone County area median sales price in May was $195,873, an increase of 19 percent from the previous May and 6.5 percent from April. This direction is consistent with historical data (2012-16) reflecting that the May median sales price on average increases from April by 12.5 percent. Pricing can fluctuate from month to month as the sample size of data (closed transactions) is subject to seasonal buying patterns. ACRE recommends consulting a local real estate professional.

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 Athens/Limestone May Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply. 

The Athens/Limestone County Residential Monthly Report is developed in conjunction with the Athens/Limestone County Association of Realtors to better serve North Alabama consumers.

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