Sales: According to the Valley Multiple Listing Service, Gadsden-area residential sales totaled 75 units during June, down 23 percent from June 2016, when sales totaled 97 units. Two more resources to review: Quarterly Report and Annual Report.
Click here to view all of the Alabama Center for Real Estate’s Gadsden residential data.
Forecast: June sales were 15 units or 16 percent below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’S 2017 sales forecast through June projected 453 closed transactions, while the actual sales were 426 units.
Supply: Gadsden-area housing inventory totaled 560 units. The June supply dipped 3.4 percent from May. This direction is consistent with historical data that indicate June inventory on average (2012-16) decreases from May by 0.2 percent.
The inventory-to-sales ratio in June was 7.5 months of housing supply. Restated, at the June sales pace, it would take 7.5 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be about 6 months during June.
Demand: June residential sales were up 2.7 percent from May. Historical data indicate that June sales on average (2012-16) increase from May by 4.8 percent.
Pricing: The Gadsden-area median sales price in June was $134,000, a 14 percent increase from June 2016 ($116,900). The median sales price increased 22 percent compared to the prior month. This direction is consistent with historical data (2012-16) indicating that the June median sales price typically increases from May by 24.5 percent. 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 Gadsden June Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.