Sales: According to the North Alabama Multiple Listing Service, Morgan County (Decatur) residential sales totaled 182 units during June, up 34 percent from the same month in 2016. Home sales in Morgan County during June 2016 totaled 135 units. Another resource to review is the Annual Report.
Click here for all Morgan County residential data.
Forecast: June sales were 44 units or 31 percent above the Alabama Center for Real Estate’s monthly forecast. ACRE’s 2017 sales forecast through June projected 688 closed transactions, while the actual sales were 774 units.
Supply: Morgan County area housing inventory totaled 608 units, a decrease of 21 percent from June 2016. Inventory was 9.1 percent below the prior month. Historical data indicate June inventory on average (2012-16) decreases from May by 0.3 percent.
The inventory-to-sales ratio during June was 3.3 months of housing supply. Restated, at the June sales pace, it would take 3.3 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months during June. In June 2016, the supply stood at 5.7 months. The months-of-supply figure has declined 69 percent from the June peak reached in 2010 (10.7 months), which is encouraging news.
Demand: June residential sales rose 26 percent from the prior month. Historical data indicate June sales on average (2012-16) increase from May by 12.1 percent. The average days on the market until a listing sold was 105 days, down 0.9 percent from the previous June.
Pricing: The Morgan County median sales price during June was $134,950, which is 0.7 percent below June 2016’s $135,900. Differing sample size from month to month can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood.
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 Morgan County June Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.