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, Morgan County (Decatur) residential sales totaled 113 units during October , an increase in sales growth of 24 percent or 22 units above the same period last year. Year-to-date sales through October are 23.6 percent from 2014. Two more resources to review market: Quarterly Report and Annual Report

Forecast: October sales were 18 units or 19 percent above our monthly forecast. ACRE’s year-to-date sales forecast through October projected 964 closed transactions while the actual sales were 1,199 units, a rise of 24 percent.

Home sales during October in Morgan County have been on the rise since 2013, reaching 113 units this fall.

Supply: Morgan County area housing inventory totaled 816 units, a decrease of 15.4 percent from October 2014. Inventory was also 2.7 percent below the prior month. Historical data indicates October inventory on average (2010-14) decreases from the month of September by 2.2 percent. The inventory-to-sales ratio in October was 7.2 months of housing supply. Restated, at the October sales pace, it would take 7.2 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months during the month of October . Last October , the months of supply stood at 10.6 months, so the 32 percent decrease points toward a market favoring sellers. The months of supply has now declined 44.4 percent from the month of October peak (13.0 months) reached in 2010 which is encouraging news.

Demand:  October residential sales were 5 percent below the prior month. This is consistent with historical data, which indicates October sales on average (2010-14) decrease from the month of September by 1.4 percent. The average Days on Market (DOM) until a listing sold was 116 days,up 0.9 percent from last October.

Pricing: The Morgan County median sales price in October was $116.000, which is 3.3 percent below October 2014’s $120,000 and 2.9 percent ($119,500) below the month prior. This is consistent with historical data (2010-14) which indicates the median sales price decreases 3.8 percent from September. It should also be noted that the differing sample size (# of residential sales of comparative months) can contribute to statistical volatility including pricing. We highly recommend consulting with a local real estate professional to discuss pricing as it can and will vary from neighborhood to neighborhood.

Since hitting bottom in 2010 ($110,522) the average sales price in Morgan County during October has been on the rise, hitting $131,658 this fall.

Homes in Morgan County during October are selling faster on average, with 116 days on the market last month.

Inventory has dropped from its 2010 peak of 1,103 units to 816 during October.

October median sales prices in Morgan County have been up and down over the past half decade, dropping slightly to $116,000 in 2015.

Months of supply is dropping in a favorable direction (7.2) but the October number is still a little ways from the 6.0 market equilibrium mark.

Year-to-date home sale during October in Morgan County are 23.6 percent higher than last year.

Total sales are well below the 2006 peak of 174 but have been on the rise 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 Morgan County Residential Monthly Report is work product developed in conjunction with the Morgan County Association of Realtors to better serve 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 an area including subdivisions, and ACRE recommends that you consult a local real estate professional for “specific” advice associated with your market. The Morgan County Association of Realtors (MCAOR) promotes educates and supports its members in serving the public while adhering to the RealtorCode of Ethics. In partnership withe Alabama Association of Realtors and the National Association of Realtors, MCAOR to expand opportunities for real property ownership and to preserve private property rights.  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.