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

Sales: According to the North Alabama Multiple Listing Service, Athens/Limestone County residential sales totaled 89 units in October, a slight decrease in sales growth of 1.1 percent or one unit below the same period last year. Last October’s 90 sold units represented the best sales for the month since 136 units were sold during October 2007. Year-to-date sales through October are up 23.3 percent from 2014. Two more resources to review: Quarterly Report and Annual Report

Forecast: October sales were 10 percent or eight units above our monthly forecast. Alabama Center for Real Estate‘s (ACRE) year-to-date sales forecast through October projected 781 closed transactions while the actual sales were 979 units, a rise of 25 percent.

Residential sales in Athens during October dipped by one unit to 89 compared to the same period last year.

Supply: Athens/Limestone County housing inventory totaled 754 units, a decrease of 6 percent from October 2014. New home inventory is up by one unit year-over-year, while existing home sales dipped by 54 units. October inventory was 2.7 percent below the prior month. This direction is consistent with historical data indicating that October inventory on average (2010-14) decreases from the month of September by 9.2 percent.

The inventory-to-sales ratio in October was 8.5 months of housing supply. Restated, at the October sales pace, it would take 8.5 months to absorb the current inventory for sale. This is a decrease (favorable direction) of 4.8 percent from 8.9 months of supply in October 2014. The market equilibrium (balance between supply and demand) during the month of October is considered to be approximately 6.0 months NSA.

Demand: October residential sales were 22 percent below the prior month. This direction is consistent with historical data associated with October sales, but slightly higher than the projected 2.6 percent.. Existing single family home sales accounted for 78 percent (up from 70 percent in October 2014) of total sales and new homes sales accounted for 20 percent (down from 27 percent in October 2014).

Pricing: The Athens/Limestone County area median sales price in October was $155,000, a decrease of 2.4 percent from last October. This figure is unchanged from the prior month. This direction is consistent with historical data (2010-14) reflecting that the October median sales price on average only decreases from the month of September by 0.8 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.

Compared to last October, the average sales price in Athens dipped 11 percent to $168,109 in 2015.

The average days on the market during October for Athens homes dropped drastically compared to last October (142) to 79 days in 2015.

Inventory in Athens is also down for the month of October, dropping 6 percent to 754 units in 2015.

The median sales price in Athens during October remains below the 2007 peak ($181,900) but is holding steady at $155,000.

Months of supply is in a favorable downward trajectory for October in Athens, but there is still work to do to reach the 6.0 desired equilibrium.

October year-to-date sales in Athens are 23.3 percent higher than 2014.

Sales remain well below the peak of 136 units established in 2007 but have held steady the past two years.

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. 

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.