Wiregrass area home sales prices up in June, total sales down slightly from last year

Wiregrass area home sales prices up in June, total sales down slightly from last year
Housing inventory is down, and sales remain ahead of projections for the first half of 2017. (iStock)

Click here to view or print the entire monthly report compliments of the ACRE Corporate Cabinet.

Sales: According to the Wiregrass Multiple Listing Service, Wiregrass area residential sales totaled 90 units during June, 6 percent below the number recorded during the same month the previous year. June 2016 home sales totaled 96 units. Two more resources to review: Quarterly Report and Annual Report.

For all of the Wiregrass area housing data, click here.

Forecast: June sales were 11 units and 11 percent below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s 2017 sales forecast through June projected 497 closed transactions, while the actual sales were 506 units.

Supply: Wiregrass area housing inventory totaled 756 units, a decrease of 6 percent from June 2016. Inventory was down 2.6 percent from the prior month. This direction is consistent with historical data that indicate June inventory on average (2012-16) decreases from May by 1.1 percent.

The inventory-to-sales ratio during June of 8.4 months of housing supply was equal to the same period a year earlier. Restated, at the June sales pace, it would take 8.4 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 residential sales were down 11 percent from the prior month. Historical data indicate June sales on average (2012-16) increase from May by 2.8 percent. The average days on the market until a listing sold was 133 days, faster than June 2016’s 169 days.

Pricing: The Wiregrass area median sales price in June was $149,950, an increase of 13.6 percent from June 2016 ($132,000) and a 16 percent increase from the previous month. This direction is consistent with historical seasonal data (2012-16) that reflect the June median sales price on average increases from May by 3.1 percent. It should be noted that the differing sample size (number of residential sales of the comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss prices, as they 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 download graphs from the Wiregrass Region June Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply. 

The Wiregrass Residential Monthly Report is developed in conjunction with the Wiregrass Board of Realtors to better serve Wiregrass area consumers.

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