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

Sales: According to the Multiple Listing Service of the Shoals Area Association of Realtors, Shoals Area* residential sales totaled 123 units in October, a decrease in sales of 9 percent or 12 units below the same period last year. Year-to-date sales through October are up 13.6 percent from 2014. Two more resources to review: Quarterly Report and Annual Report

Forecast: October sales landed five units below our monthly forecast. This is the first month during 2015 Shoals area home sales have not met or exceeded expectations. Alabama Center for Real Estate’s (ACRE) year-to-date sales forecast through October projected 1,286 closed transactions while the actual sales were 1,377 units, a rise of 7 percent.

Home sales in Shoals during October dropped 9 percent year-over-year in 2015 and also dipped 17 percent from September.

Supply: Shoals Area housing inventory totaled 1,084 units, a decrease of 10.2 percent from October 2014. Inventory also decreased 2.1 percent from the prior month. Historical data suggests housing inventory decreases generally by 0.7 percent from September to October. Inventory has favorably declined 11.5 percent from the month of October peak of 1,225 reached in 2010.

The inventory-to-sales ratio in October was 8.8 months of housing supply, a favorable decrease of 1.4 percent from last October . Restated, at the October sales pace, it would take 8.8 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6.0+/- months (not seasonally adjusted) during October .

Demand: October sales dropped 16.9 percent from the prior month. Historical data from 2010-14.  indicates typical sales increase 0.6 percent from September to October .

Pricing: The Shoals Area median sales price in October was $124,800, an increase of 13.5 percent from October 2014. The median sales price also increased 6.5 percent from the prior month. This direction is consistent with historical data indicating that the October median sales price on average (2010-14) increases by 7 percent from the month of September. 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.” For full report click here.

The Shoals Area Residential Monthly Report is work product developed in conjunction with the Shoals Area 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 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.