Sales: According to the Wiregrass Multiple Listing Service, Wiregrass area residential sales totaled 101 units during May, 5 percent above the number recorded during the same month the previous year. May 2016 home sales totaled 96 units. Two more resources to review: Quarterly Report and Annual Report.
For all of the Wiregrass area housing data, click here.
Forecast: May sales were four units and 4 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s 2017 sales forecast through May projected 396 closed transactions, while the actual sales were 416 units.
Supply: Wiregrass area housing inventory totaled 776 units, a decrease of 2 percent from May 2016. Inventory was up 4 percent from the prior month. This direction is consistent with historical data that indicate May inventory on average (2012-16) increases from April by 2 percent.
The inventory-to-sales ratio during May of 7.7 months of housing supply was down 7 percent from the same period a year earlier. Restated, at the May sales pace, it would take 7.7 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.
Demand: May residential sales were up 20 percent from the prior month. Historical data indicate May sales on average (2012-16) increase from April by 24 percent. The average days on the market until a listing sold was 155 days, faster than May 2016’s 180 days.
Pricing: The Wiregrass area median sales price in May was $129,000, an increase of 8 percent from May 2016 ($119,000) and a 14 percent decrease from the previous month. This direction contrasts with historical seasonal data (2012-16) that reflect the May median sales price on average increases from April by 14 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: “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 Wiregrass Region May Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.