Shoals Area July home sales up 10 percent over last July

Shoals Area July home sales up 10 percent over last July
Sales in the past year continued to reduce the area's housing inventory, finally restoring the balance that the real estate market had lost during the recession. (iStock)

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

Sales: According to the Multiple Listing Service of the Shoals Area Association of Realtors, Shoals area residential sales totaled 162 units during July, up 9.5 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: July’s 162 home sales were 3 units or 2 percent above the Alabama Center for Real Estate’s monthly forecast. ACRE’s 2017 sales forecast through July projected 971 closed transactions, and actual closed sales were at 1,007.

Supply: Shoals area housing inventory totaled 968 units, a decrease of 6.3 percent from July 2016. Inventory has declined 26.7 percent from the July peak of 1,320 units in 2010.

The inventory-to-sales ratio in July was 6 months of housing supply, down 14.4 percent from July 2016. Restated, at the July sales pace, it would take 6 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: July sales decreased by 4.1 percent from the prior month’s total sales of 169. Historical data from 2012-16 indicate sales typically increase 2.9 percent from June to July.

Pricing: The Shoals area median sales price in July was $133,000, a 2.4 percent increase from $129,900 in July 2016. The median sales price was 0.8 percent above the prior month. This direction is consistent with historical data indicating that the July median sales price on average (2012-16) increases by 0.1 percent from June. 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: “We are keeping our full-year economic growth outlook at 2 percent as risks to our forecast are roughly balanced,” said Fannie Mae Chief Economist Doug Duncan. “On the upside, consumer spending growth might not moderate as much as we have accounted for in our forecast. A build-up in inventory also should be positive for growth this quarter and nonresidential investment in structures will likely continue to improve as oil prices stabilize.”

Click here to generate more graphs from the Shoals July Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply. 

The Shoals Area Residential Monthly Report is developed in conjunction with the Shoals Area Association of Realtors to better serve its area consumers.

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