Sales: According to the Wiregrass Multiple Listing Service, Wiregrass area residential sales totaled 85 units during October, 49.1 percent above the number recorded during the same month the previous year. October 2016 home sales totaled 57 units. Year-to-date sales through October are up 17.7 percent from the same period in 2016. Two more resources to review: Quarterly Report and Annual Report.
For all of the Wiregrass area housing data, click here.
Forecast: October sales were five units and 6.25 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s 2017 sales forecast through October projected 844 closed transactions, while the actual sales were 897 units.
Supply: Wiregrass area housing inventory totaled 708 units, a decrease of 8.8 percent from October 2016. Inventory was down 1 percent from the prior month.
The inventory-to-sales ratio during October was 8.3 months of housing supply, down 38.8 percent from the same period last year. Restated, at the October sales pace, it would take 8.3 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 residential sales were down 15.8 percent from the prior month. Historical data indicate October sales on average (2012-16) increase from September by 9.3 percent. The average days on the market until a listing sold was 124 days, faster than October 2016’s 151 days.
Pricing: The Wiregrass area median sales price in October was $109,900, an increase of 18.2 percent from October 2016 ($93,000) and a 15.5 percent decrease from the previous month. It should be noted that the differing sample size (number of residential sales of the comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss prices, as they 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 download graphs from the Wiregrass Region October Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.