Sales: According to the Cullman MLS, Cullman County area residential sales totaled 73 units during June, up 22 percent from the same month a year earlier. Two more resources to review: Quarterly Report and Annual Report.
For all of Cullman’s real estate data, click here.
Demand: June residential sales decreased 25 percent from the prior month. This direction contrasts with historical data indicating that June sales on average (2012-16) increase from May by 4.6 percent.
Forecast: June sales were right on target with the Alabama Center for Real Estate’s monthly forecast. ACRE’s 2017 sales forecast through June projected 393 closed transactions, while the actual sales were 413.
Supply: Cullman County area housing inventory totaled 523 units, 11 percent below the supply in June 2016. The inventory-to-sales ratio in June was 7.2 months of housing supply. Restated, at the June sales pace, it would take 7.2 months to absorb the current inventory for sale. This is 60 percent lower than the 2010 peak (18.1 months of supply). The market equilibrium (balance between supply and demand) for June is approximately 6 months.
Pricing: The Cullman County median sales price in June was $134,900, a increase of 2.2 percent from June 2016 ($131,950). The median sales price was 4.7 percent above the prior month. This direction is consistent with historical data (2012-16) reflecting that the June median sales price on average increases from May by 4.7 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: “While second-quarter growth is poised to rebound, we expect growth to moderate through the remainder of 2017. Consumer spending, traditionally the largest contributor to economic growth, is sluggish and is lagging positive consumer sentiment and solid hiring,” said Fannie Mae Chief Economist Doug Duncan. “While labor market slack continues to diminish, wage growth is not accelerating and inflation has moved further below the Fed’s target. These conditions support our call that the Fed will continue gradual monetary policy normalization, announce its balance sheet tapering policy in September, and wait until December for additional data, especially on inflation, before raising the fed funds rate for the third time this year.”
Click here to generate more graphs from the Cullman June Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.