Sales: According to the Wiregrass Multiple Listing Service, Wiregrass area residential sales totaled 103 units during July, 30.4 percent above the number recorded during the same month the previous year. July 2016 home sales totaled 79 units. Two more resources to review: Quarterly Report and Annual Report.
For all of the Wiregrass area housing data, click here.
Forecast: July sales were 7 units and 7 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s 2017 sales forecast through July projected 593 closed transactions, while the actual sales were 609 units.
Supply: Wiregrass area housing inventory totaled 772 units, a decrease of 4.7 percent from July 2016. Inventory was up 2.1 percent from the prior month. This direction contrasts with historical data that indicate July inventory on average (2012-16) decreases from June by 0.2 percent.
The inventory-to-sales ratio during July was 7.5 months of housing supply, up 26.9 percent from the same period last year. Restated, at the July 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 approximately 6 months during July .
Demand: July residential sales were up 14.4 percent from the prior month. Historical data indicate July sales on average (2012-16) decrease from June by 9.4 percent. The average days on the market until a listing sold was 135 days, faster than July 2016’s 161 days.
Pricing: The Wiregrass area median sales price in July was $136,500, a decrease of 27 percent from July 2016 ($187,000) and a 9 percent decrease from the previous month. This direction is consistent with historical seasonal data (2012-16) that reflect the July median sales price on average decreases from June by 9.4 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: “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 download graphs from the Wiregrass Region July Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.