Sales: According to the Wiregrass Multiple Listing Service, the Wiregrass area residential sales totaled 73 units during October, a decrease in sales of 6.4 percent or five units below the same period last year. October sales were 16 percent higher than the 2012 low of 63 units for Wiregrass.Year-to-date, sales in Wiregrass are 22.8 percent higher than the same period last year. Two more resources to review: Quarterly Report and Annual Report
Forecast: October sales were three units below our monthly forecast. ACRE’s year-to-date sales forecast through October projected 791 closed transactions while the actual sales were 748 units, a dip of 5.4 percent.
Supply: Wiregrass area housing inventory totaled 861 units, a decrease of 8 percent from October 2014. Inventory was down 1.5 percent from the prior month. This direction is consistent with historical data that indicates October inventory on average (2010-14) decreases from the month of September by 1.1 percent. Inventory levels remain above normal but progress is being made. The inventory-to-sales ratio in October of 11.8 months of housing supply is down 2 percent from the same period last year. Restated, at the October sales pace, it would take 11.8 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 October so this indicates the continued presence of a buyer’s market.
Demand: October residential sales were 17 percent below the prior month. This direction contrasts with seasonal and local historical data that indicates the October sales on average (2010-14) increase from the month of September by 10 percent. The average Days on Market (DOM) until listing sold was 197 days, 26 percent faster than last October 2014 (157 days).
Pricing: The Wiregrass Area median sales price in October was $112,500, an increase of 5 percent from October 2014 ($107,500) and 6.6 percent above last month ($105,500). This direction is consistent with historical seasonal data (2010-14) that reflects the October median sales price on average increases from the month of September by 6.3 percent. It should be noted that the differing sample size (# of residential sales of the comparative months) can contribute to statistical volatility including pricing. We highly recommend consulting with a local real estate professional to discuss prices as it can and will vary from neighborhood to neighborhood.
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.