Sales: According to the Valley Multiple Listing Service, Gadsden-area residential sales totaled 84 units during September, compared to 86 in September 2016, a 2.3 percent dip. 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: September sales were 9 units or 12 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’S 2017 sales forecast through September projected 607 closed transactions, while the actual sales were 688 units.
Supply: Gadsden-area housing inventory totaled 494 units. The September supply dipped 3.7 percent from August. This direction is consistent with historical data that indicate September inventory on average (2012-16) decreases from August by 3.7 percent.
The inventory-to-sales ratio in September was 5.9 months of housing supply. Restated, at the September sales pace, it would take 5.9 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be about 6 months.
Demand: September residential sales were 7.7 percent from August.
Pricing: The Gadsden-area median sales price in September was $111,950, a 12.5 percent increase from September 2016 ($99,500). The median sales price decreased 12.5 percent compared to the prior month. This direction is consistent with historical data (2012-16) indicating that the September median sales price typically decreases from August by 7.7 percent. Pricing can fluctuate from month to month as the sample size of data (closed transactions) is subject to seasonal buying patterns. ACRE recommends contacting a local real estate professional for additional market pricing information.
Industry perspective: “The impacts from this season’s hurricanes on the U.S. economy were wide-ranging but should dissipate over time. These include the loss of momentum in consumer spending and residential investment, as well as a decline in September payrolls and August home sales and contract signings,” said Fannie Mae Chief Economist Doug Duncan. “We expect economic activity to rebound in coming months. The recovery will likely be slower for home sales and home building, however, as the labor shortage and rising material prices will likely worsen after the hurricanes, exacerbating already-tight inventory. While we expect full-year economic growth for 2017 to come in at the same rate projected in our prior forecast, we now believe that total home sales will be essentially flat this year compared with the moderate rise predicted in the prior forecast. Despite muted underlying inflation, we continue to expect the Fed to raise rates for the third time this year in December.”
Click here to generate more graphs from the Gadsden September Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.