For all of Calhoun County’s area real estate data, click here.
Forecast: May sales were 35 units or 6 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. The 2017 sales forecast through May projected 580 closed transactions, while the actual sales were 657 units.
Supply: Calhoun County area housing inventory totaled 966 units, a decrease of 9 percent from May 2016. Inventory increased 9 percent from the prior month. This direction contrasts with historical data that shows May inventory on average (2012-16) decreases from April by 0.2 percent. The inventory-to-sales ratio during May decreased from 6.7 months of supply during May 2016 to 5.7 months of housing supply during 2017. Restated, at the May sales pace, it would take 5.7 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) during May is considered to be approximately 6 months.
Demand: May residential sales increased 32 percent from April. Historical data from Calhoun County indicate that May sales on average (2012-16) increase from April by 3.1 percent. The average days on market until a listing sold was 133 days, up 11 percent from the previous May.
Pricing: The Calhoun County median sales price in May was $113,450, which is 5 percent lower than the previous May. Pricing can fluctuate from month to month as the sample size of data (closed transactions) is subject to seasonal buying patterns. 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 Calhoun County’s May Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.