Sales: According to the Cullman MLS, Cullman County area residential sales totaled 84 units during August, up 29.2 percent from the same month a year earlier. Two more resources to review: Quarterly Report and Annual Report.
For all of Cullman’s real estate data, click here.
Demand: August residential sales increased 29.2 percent from the prior month. This direction is consistent with historical data indicating that August sales on average (2012-16) increase from July by 1.9 percent.
Forecast: August sales were 4 units or 5 percent below the Alabama Center for Real Estate’s monthly forecast. ACRE’s 2017 sales forecast through August projected 554 closed transactions, while the actual sales were 562.
Supply: Cullman County area housing inventory totaled 574 units, 4 percent below the supply in August 2016. The inventory-to-sales ratio in August was 6.8 months of housing supply. Restated, at the August sales pace, it would take 6.8 months to absorb the current inventory for sale. This is 52.5 percent lower than the 2008 peak (14.4 months of supply). The market equilibrium (balance between supply and demand) for August is approximately 6 months.
Pricing: The Cullman County median sales price in August was $153,675, an increase of 28.1 percent from August 2016 ($120,000). The median sales price was 10.6 percent above the prior month. This direction contrasts with historical data (2012-16) reflecting that the August median sales price on average decreases from July by 6.9 percent. Pricing can fluctuate from month to month as the sample size of data (closed transactions) is subject to seasonal buying patterns. ACRE recommends consulting a local real estate professional.
Industry perspective: “For the first time in 2017, we have increased our full-year growth outlook. The upgrade reflects economic activity gaining momentum at the end of the second quarter, though we see a great deal of uncertainty surrounding the forecast,” said Fannie Mae Chief Economist Doug Duncan. “The list of uncertainties now extends beyond the geopolitical and legislative, as the effects of Hurricanes Harvey and Irma will require time to untangle. Historically, natural disasters that hit heavily populated areas led to substantial near-term declines in economic activity but meaningful rebounds in subsequent quarters due to rebuilding efforts. Thus, economic growth in the second half of 2017 could still average a slightly stronger pace than the first half. Unfortunately, we continue to expect home sales to be flat during the second half of the year compared to the first half due to strong home price appreciation and lean inventories.”
Click here to generate more graphs from the Cullman August Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.