Gadsden year-to-date residential sales up 20 percent over 2014

Click here to view or print the entire September report compliments of the ACRE Corporate Cabinet.
Sales: According to the Valley Multiple Listing Service, Gadsden area residential sales totaled 76 units in September, an increase in sales growth of 24.6 percent from the same period a year earlier. This represents the best sales results for the month of September since 2005. Year-to-date sales through September are up 20.6 percent from 2014. Two more resources to review market: Quarterly Report and Annual Report
Forecast: September sales were 12 units or 18 percent above our monthly forecast. Alabama Center for Real Estate’s (ACRE) year-to-date sales forecast through September projected 585 closed transactions while the actual sales were 637 units, a rise of 8.89 percent.

Residential sales in Gadsden increased 24.6 percent over September 2014 last month and 7 percent over August numbers. Inventory dipped slightly (0.3 percent) month-to-month but rose 1.4 percent year-over-year.
Supply: Gadsden area housing inventory totaled 772 units, slightly below the 781-unit peak in September 2010. The September inventory declined 0.3 percent from the prior month. This direction is right on target with historical data that indicates September inventory on average (2010-14) decreases from the month of August by 0.4 percent.
The inventory-to-sales ratio in September remains higher than desired at 10.2 months of housing supply. Restated, at the September sales pace, it would take 10.2 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6.0 months during the month of September so this represents an area where continued improvement would be welcome news. The encouraging news is that the months of supply have dropped 33.7 percent from last the September peak of 15.3 months of supply reached in 2010.
Demand: September residential sales were 7 percent or 5 units above the prior month. This direction is consistent with seasonal patterns and historical data indicating that September sales on average (2010-14) increase from the month of August by 2 percent.
Pricing: The Gadsden area median sales price in September was $85,750, a decrease of 27.9 percent from last September ($119,000). The median sales price also slipped 9.3 percent when compared to the prior month. This direction contrast with historical data (2010-14) indicating that the September median sales price typically increases from the month of August by 21 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 to pricing trends is appropriate and we recommend contacting a local real estate professional for additional market pricing information.
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 Gadsden Residential Monthly Report is work product developed in conjunction with the Etowah-Cherokee County Association of Realtors to better serve its area consumers. The ACRE monthly report is provided to illustrate the “general” market direction & trends when comparing prior periods with the most current residential data available. Real estate is local and statistics will fluctuate between areas within a city including subdivisions, and 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.