Published On: 10.29.15 | 

By: Bryan Davis

Athens September year-to-date residential sales up 26 percent over last year

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Click here to view or print the entire September report compliments of the ACRE Corporate Cabinet.

Sales: According to the North Alabama Multiple Listing Service, Athens/Limestone County residential sales totaled 114 units in September, an increase in sales growth of 32.6 percent or 28 units above the same period last year. This represents the best September for Athens/Limestone County September 2007 (125 units). Year-to-date sales through September are up 26.4 percent from 2014. Two more resources to review market: Quarterly Report and Annual Report

Forecast: September sales were 39 percent or 32 units above our monthly forecast. Alabama Center for Real Estate’s (ACRE) year-to-date sales forecast through September projected 700 closed transactions while the actual sales were 890 units, a rise of 27 percent.

Historical sales

Sales hit their best September mark since 2007 in Athens last month with 114, 32.6 percent better than September 2014. Year-to-date sales in September were 26.4 percent better than 2014.

Supply: Athens/Limestone County housing inventory totaled 775 units, a decrease of 5.1 percent from September 2014. New home inventory is up by 47 units year-over-year, while existing home sales dipped by 18 units.. September inventory was 5.4 percent below the prior month. This direction is consistent with historical data indicating that September inventory on average (2010-14) decreases from the month of August by 3.4 percent.

The inventory-to-sales ratio in September was 6.8 months of housing supply. Restated, at the September sales pace, it would take 6.8 months to absorb the current inventory for sale. This is a decrease (favorable direction) of 28 percent from 9.5 months of supply in September 2014. The market equilibrium (balance between supply and demand) during the month of September is considered to be approximately 6.0 months NSA.

Demand: September residential sales were 1.7 percent below the prior month. This direction is consistent with historical data associated with September sales that on average (2010-14) decrease from the month of August by 1.5 percent. Existing single family home sales accounted for 76 percent (up from 72 percent in September 2014) of total sales and new homes sales accounted for 24 percent (down from 27 percent in September 2014).

Pricing: The Athens/Limestone County area median sales price in September was $155,000, a decrease of 2.5 percent from last September . This figure also represents a 10.8 percent decrease from the prior month. This direction is consistent with historical data (2010-14) reflecting that the September median sales price on average decreases from the month of August by 4.8 percent. Pricing can fluctuate from month-to-month as the sample size of data (closed transactions) is subject to seasonal buying patterns so a broader lens as it pertains to pricing trends is appropriate. We recommend consulting a local real estate professional.

Industry Perspective: “Our forecast for the year is largely unchanged despite recent market volatility. Fundamentals are positive, suggesting potential for some improvement in the fourth quarter,” said Fannie Mae Chief Economist Doug Duncan. “While core personal consumption expenditures experienced their weakest gain in more than four years in July, real consumer spending rebounded during the month and August auto sales were stronger than they have been in a decade. Consumers may get an added boost during the year from subdued inflation given the stronger dollar and low oil prices. Overall, we anticipate economic growth of 2.4 percent for 2015, up slightly from 2.1 percent in the prior forecast. Consumer and government spending as well as nonresidential and residential investment are expected to contribute to growth while net exports and inventory investment will likely pose headwinds.” For full report click HERE.

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Bryan Davis is the research/media coordinator for the Alabama Center for Real Estate housed within the Culverhouse College of Commerce at the University of Alabama. He can be reached at 205-348-5416 or at bkdavis@culverhouse.ua.edu.

The Athens/Limestone County Residential Monthly Report is work product developed in conjunction with the Athens/Limestone County Association of Realtors to better serve North Alabama consumers. The ACRE monthly report is provided to illustrate the “general” market direction & trends when comparing prior periods with the most current available data. Real estate is local and statistics will fluctuate between areas within a city including subdivisions. ACRE recommends that you consult a local real estate professional for “specific” advice associated with your market. The Alabama Center for Real Estate‘s core purpose is to advance the real estate industry in Alabama by providing relevant resources in the areas of research, education and outreach.

– See more at: https://alabamanewscenter.com/category/business/real-estate/