Sales: According to the Multiple Listing Service of the Shoals Area Association of Realtors, Shoals area residential sales totaled 169 units during May, up 13 percent from the same month in 2016. Another resource to review is the Annual Report.
For all Shoals-area real estate data, click here.
Forecast: May’s 169 home sales were 13 units or 8 percent above the Alabama Center for Real Estate’s monthly forecast. ACRE’s 2017 sales forecast through May projected 653 closed transactions, and actual closed sales were at 676.
Supply: Shoals area housing inventory totaled 982 units, a decrease of 1.4 percent from May 2016. Inventory has declined 20 percent from the May peak of 1,226 units in 2010.
The inventory-to-sales ratio in April was 5.8 months of housing supply, down 13 percent from May 2016. Restated, at the May sales pace, it would take 5.8 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 sales increased 16 percent from the prior month. Historical data from 2012-16 indicate sales typically increase 2.3 percent from April to May.
Pricing: The Shoals area median sales price in May was $147,000, a 24 percent increase from $118,900 in May 2016. The median sales price was 14 percent above the prior month. This direction is consistent with historical data indicating that the May median sales price on average (2012-16) increases by 4.7 percent from April. 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 Shoals May Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.