Sales: According to the Valley Multiple Listing Service, Gadsden-area residential sales totaled 73 units during May, down 24 percent from May 2016, when sales totaled 97 units. Two more resources to review: Quarterly Report and Annual Report.
Click here to view all of the Alabama Center for Real Estate’s Gadsden residential data.
Forecast: May sales were 14 units or 16 percent below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’S 2017 sales forecast through May projected 363 closed transactions, while the actual sales were 351 units.
Supply: Gadsden-area housing inventory totaled 580 units. The May supply rose 5 percent from April. This direction is consistent with historical data that indicate May inventory on average (2012-16) increases from April by 1.2 percent.
The inventory-to-sales ratio in May was 7.9 months of housing supply. Restated, at the May sales pace, it would take 7.9 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be about 6 months during May.
Demand: May residential sales were down 25 percent from April. Historical data indicate that May sales on average (2012-16) increase from April by 12 percent.
Pricing: The Gadsden-area median sales price in May was $109,900, an 11 percent decrease from May 2016 ($124,000). The median sales price increased 3 percent compared to the prior month. This direction is consistent with historical data (2012-16) indicating that the May median sales price typically increases from April by 3 percent. 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: “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 Gadsden May Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.