Sales: According to the Multiple Listing Service of the Shoals Area Association of Realtors, Shoals area residential sales totaled 169 units during June, down 4.5 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: June’s 169 home sales were 10 units or 6 percent above the Alabama Center for Real Estate’s monthly forecast. ACRE’s 2017 sales forecast through June projected 812 closed transactions, and actual closed sales were at 845.
Supply: Shoals area housing inventory totaled 990 units, an increase of 0.4 percent from June 2016. Inventory has declined 23.7 percent from the June peak of 1,297 units in 2010.
The inventory-to-sales ratio in June was 5.9 months of housing supply, up 5.6 percent from June 2016. Restated, at the June sales pace, it would take 5.9 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.
Demand: June sales neither increased nor decreased from the prior month. Historical data from 2012-16 indicate sales typically increase 8.1 percent from May to June.
Pricing: The Shoals area median sales price in June was $132,000, an 8 percent increase from $122,350 in June 2016. The median sales price was 10 percent below the prior month. This direction contrasts with historical data indicating that the June median sales price on average (2012-16) increases by 2.3 percent from May. 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: “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 Shoals June Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.