Sales: According to the North Alabama Multiple Listing Service, Morgan County (Decatur) residential sales totaled 131 units during October, up 15.9 percent from the same month in 2016. Home sales in Morgan County during October 2016 totaled 113 units. Year-to-date sales for 2017 are up 7.7 percent from the same period in 2016. Another resource to review is the Annual Report.
Click here for all Morgan County residential data.
Forecast: October sales were 14 units or 12 percent above the Alabama Center for Real Estate’s monthly forecast. ACRE’s 2017 sales forecast through September projected 1,200 closed transactions, while the actual sales were 1,276 units.
Supply: Morgan County area housing inventory totaled 673 units, a decrease of 6.8 percent from October 2016. Inventory was 0.1 percent above the prior month. Historical data indicates October inventory on average (2012-16) decreases from September by 4.5 percent.
The inventory-to-sales ratio during October was 5.1 months of housing supply. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months. In October 2016, the supply stood at 6.4 months. The months-of-supply figure has declined 60.5 percent from the October peak reached in 2010 (13 months), which is encouraging news.
Demand: October residential sales increased by 7.4 percent from the prior month. Historical data indicate October sales on average (2012-16) decrease from September by 9.6 percent. The average number of days on the market until a listing sold was 73 days, down 9.9 percent from the previous October.
Pricing: The Morgan County median sales price during October was $119,300, which is 11.3 percent below September 2016’s $134,500. Differing sample size from month to month can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood.
Industry perspective: “The first print of third-quarter economic growth showed surprising resiliency. The expected economic hit from the recent natural disasters either failed to materialize or was drowned out by business optimism,” said Fannie Mae Chief Economist Doug Duncan. “Recent data showed a stronger pickup in domestic demand than anticipated, leading us to increase our growth forecast for the final quarter of this year and coming quarters. We also revised higher our 2018 growth forecast to 2 percent. Tax cuts, if enacted, present upside risk to our growth forecast for next year but could also lead to more aggressive Fed action. Housing still remains a drag on the economy, as shortages of labor and available lots, coupled with rising building material prices, further complicate existing inventory, affordability and sales challenges.”
Click here to generate more graphs from the Morgan County October Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.