Sales: According to the North Alabama Multiple Listing Service, Marshall County home sales in August were 19.1 percent above August 2016 at 112 sales for the month. Home sales in August 2016 totaled 94 units. Year to date, sales were up 6.3 percent over the same period in 2016. Another resource to review is the Annual Report.
Click here to check out all Marshall County housing data.
Forecast: August sales were 28 units or 33.3 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s 2017 sales forecast through August projected 609 closed transactions, while the actual sales were 611 units.
Supply: Marshall County housing inventory totaled 485 units, a decrease of 14.8 percent from August 2016. August inventory decreased 3.6 percent from July. This direction is consistent with historical data that indicate August inventory on average (2012-16) decreases from July by 1.9 percent.
The inventory-to-sales ratio has decreased to 4.3 months of supply. Restated, at the August sales pace, it would take 4.3 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months.
Pricing: The Marshall County area median sales price in August was $125,000, an increase of 3.2 percent from August 2016. The August median sales price was 12.9 percent below the July median sales price. Historical data indicate that the August median sales price on average (2012-16) decreases from July by 10.9 percent. Pricing can fluctuate from month to month as the sample size of data is subject to seasonal buying patterns. ACRE recommends contacting a local real estate professional for additional market pricing information.
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 Marshall County August Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.