Sales: According to the North Alabama Multiple Listing Service, Athens/Limestone County residential sales totaled 160 units during August, an increase of 15.1 percent or 21 units above the same month in 2016. Home sales during August 2016 totaled 139 units. Two more resources to review: Quarterly Report and Annual Report.
For all Athens/Limestone County area housing data, click here.
Forecast: August sales were 13.5 percent or 19 units above the Alabama Center for Real Estate’s monthly forecast. ACRE’s 2017 sales forecast through August projected 1,030 closed transactions, while the actual sales were 1,105 units.
Supply: Athens/Limestone County housing inventory totaled 665 units, a decrease of 12.4 percent from August 2016. New-home inventory is up by five units year-over-year, while existing homes dipped by 90 units. August inventory was 2.6 percent below the prior month. This direction is consistent with historical data indicating that August inventory on average (2012-16) decreases from July by 2.5 percent.
The inventory-to-sales ratio in August was 4.2 months of housing supply. Restated, at the August sales pace, it would take 4.2 months to absorb the current inventory for sale. This is a decrease of 23.9 percent from 5.5 months of supply in August 2016. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months.
Demand: August residential sales were 6.4 percent below the prior month. This direction is consistent with historical data associated with August sales, which indicate a typical decrease of 5.8 percent from July.
Pricing: The Athens/Limestone County area median sales price in August was $190,532, an increase of 12.1 percent from the previous August and a decrease of 1.3 percent from July. This direction contrasts with historical data (2012-16) reflecting that the August median sales price on average increases from July by 1.7 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 Athens/Limestone August Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.
The Athens/Limestone County Residential Monthly Report is developed in conjunction with the Athens/Limestone County Association of Realtors to better serve North Alabama consumers.