Sales: According to the Valley Multiple Listing Service, Gadsden-area residential sales totaled 87 units during July, up 38 percent from July 2016, when sales totaled 63 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: July sales were 13 units or 17.5 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’S 2017 sales forecast through July projected 527 closed transactions, while the actual sales were 513 units.
Supply: Gadsden-area housing inventory totaled 534 units. The July supply dipped 4.6 percent from June. This direction contrasts with historical data that indicate July inventory on average (2012-16) increases from June by 0.9 percent.
The inventory-to-sales ratio in July was 6.1 months of housing supply. Restated, at the July sales pace, it would take 6.1 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be about 6 months during July.
Demand: July residential sales were up 16 percent from June. Historical data indicate that July sales on average (2012-16) decrease from June by 16.5 percent.
Pricing: The Gadsden-area median sales price in July was $135,000, a 22.7 percent increase from July 2016 ($110,000). The median sales price increased 0.7 percent compared to the prior month. This direction contrasts with historical data (2012-16) indicating that the July median sales price typically decreases from June by 8.9 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: “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 Gadsden July Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.