Sales: According to the North Alabama Multiple Listing Service, Morgan County (Decatur) residential sales totaled 116 units during July, down 18.3 percent from the same month in 2016. Home sales in Morgan County during July 2016 totaled 142 units. Another resource to review is the Annual Report.
Click here for all Morgan County residential data.
Forecast: June sales were 18 units or 13 percent below the Alabama Center for Real Estate’s monthly forecast. ACRE’s 2017 sales forecast through July projected 822 closed transactions, while the actual sales were 890 units.
Supply: Morgan County area housing inventory totaled 689 units, a decrease of 11.7 percent from July 2016. Inventory was 13.3 percent above the prior month. Historical data indicate July inventory on average (2012-16) increases from June by 1.1 percent.
The inventory-to-sales ratio during July was 5.9 months of housing supply. Restated, at the July 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. In July 2016, the supply stood at 5.5 months. The months-of-supply figure has declined 53 percent from the July peak reached in 2010 (12.7 months), which is encouraging news.
Demand: July residential sales dropped 36.3 percent from the prior month. Historical data indicate July sales on average (2012-16) decrease from June by 9.3 percent. The average days on the market until a listing sold was 87 days, down 13 percent from the previous July.
Pricing: The Morgan County median sales price during July was $125,000, which is 13.7 percent below July 2016’s $144,850. 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: “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 Morgan County July Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.