Sales: According to the Multiple Listing Service of the Shoals Area Association of Realtors, Shoals area residential sales totaled 149 units during October, up 20.2 percent from the same month in 2016. Year-to-date sales increased 13.8 percent from the same period in 2016. Another resource to review is the Annual Report.
For all Shoals-area real estate data, click here.
Forecast: October’s 149 home sales were 11 units or 8 percent above the Alabama Center for Real Estate’s monthly forecast. ACRE’s 2017 sales forecast through October projected 1,414 closed transactions, and actual closed sales were at 1,478.
Supply: Shoals area housing inventory totaled 961 units, a decrease of 1 percent from October 2016. Inventory has declined 21.6 percent from the October peak of 1,225 units in 2010.
The inventory-to-sales ratio in October was 6.4 months of housing supply, down 17.6 percent from October 2016. Restated, at the October sales pace, it would take 6.4 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months.
Demand: October sales increased by 2.1 percent from the prior month’s total sales of 146. Historical data from 2012-16 indicate sales typically increase 2.4 percent from September to October.
Pricing: The Shoals area median sales price in October was $127,000, a 0.6 percent increase from $126,300 in October 2016. The median sales price was 4.1 percent below the prior month. This direction contrasts with historical data indicating that the October median sales price on average (2012-16) is equal to September’s. 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 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 Shoals October Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.