Sales: According to the Multiple Listing Service of the Shoals Area Association of Realtors, Shoals area residential sales totaled 176 units during August, up 8 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: August’s 176 home sales were 15 units or 9.3 percent above the Alabama Center for Real Estate’s monthly forecast. ACRE’s 2017 sales forecast through August projected 1,132 closed transactions, and actual closed sales were at 1,183.
Supply: Shoals area housing inventory totaled 995 units, a decrease of 2.4 percent from August 2016. Inventory has declined 23.9 percent from the August peak of 1,308 units in 2010.
The inventory-to-sales ratio in August was 5.7 months of housing supply, down 9.6 percent from August 2016. Restated, at the August sales pace, it would take 5.7 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months during August.
Demand: August sales increased by 8.6 percent from the prior month’s total sales of 162. Historical data from 2012-16 indicate sales typically decrease 0.6 percent from July to August.
Pricing: The Shoals area median sales price in August was $135,000, a 2.7 percent increase from $131,500 in August 2016. The median sales price was 1.5 percent above the prior month. This direction is consistent with historical data indicating that the August median sales price on average (2012-16) increases by 7 percent from July. 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 August Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.