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

Sales: According to the Valley Multiple Listing Service, Gadsden area residential sales totaled 70 units in October, an increase in sales growth of 20.7 percent from the same period a year earlier. This represents the best sales results for October since 2007. Year-to-date sales through October are up 20.6 percent from 2014. Two more resources to review: Quarterly Report and Annual Report

Forecast: October sales were nine units or 14.7 percent above our monthly forecast. Alabama Center for Real Estate’s (ACRE) year-to-date sales forecast through October projected 646 closed transactions while the actual sales were 707 units, a rise of 9.4 percent.

Sales during October in Gadsden are 45.8 percent higher than the trough of 48 homes that were sold during 2011.

Supply: Gadsden area housing inventory totaled 767 units, a new peak for inventory for October.The October inventory declined 0.6 percent from the prior month. This direction is right on target with historical data that indicate October inventory on average (2010-14) decreases from September by 0.6 percent.

The inventory-to-sales ratio in October remains higher than desired at 11.0 months of housing supply. Restated, at the October sales pace, it would take 11.0 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be about 6.0 months during October so this represents an area where continued improvement would be welcome news. The encouraging news is that the months of supply have dropped 30.2 percent from the September peak of 15.7 months of supply reached in 2010.

Demand: October residential sales were 8 percent or six units below the prior month. This direction is consistent with seasonal patterns and historical data indicating that October sales on average (2010-14) decrease from September by 6.8 percent.  

Pricing: The Gadsden area median sales price in September was $114,000, an increase of 32.6 percent from last October ($$85,975). The median sales price also increased 33 percent when compared to the prior month. This direction contrasts with historical data (2010-14) indicating that the October median sales price typically decreases from September by 8.1 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: “Despite recent headwinds, which likely will slow economic growth compared to the first half of 2015, we see positive trends for consumer spending and housing heading into the fourth quarter,” said Fannie Mae Chief Economist Doug Duncan. “Strong home price gains should help drive an increase in household net worth again in the third quarter and, combined with low gasoline prices and mortgage rates, should support strong consumer spending throughout the rest of the year.” To read the full report, click here. 

Compared to last October, the average sales price in Gadsden shot up 10 percent to $117,715.

On average, it took 128 days for October inventory to close, down 22 percent from September.

Inventory is up 18 percent from its lowest point of 649 established in 2011.

The median sales price during October in Gadsden rose 32 percent over last fall.

Months of supply is still higher than desired at 11.0 during October.

Compared to the past 10 years during October, Gadsden sales were solid at 70 units.

Year-to-date sales during October in Gadsden increased 20.6 percent compared to last year.

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.