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

Sales: According to the Cullman MLS, Cullman County area residential sales totaled 57 units in October, a 3.4 percent decrease from the same period a year earlier. Year-to-date sales through October dipped 1.6 percent from 624 in October 2014 to 614 units in October 2015. Two more resources to review: Quarterly Report and Annual Report

Forecast: October sales were 5 units below our monthly forecast. ACRE’s year-to-date sales forecast through October projected 659 closed transactions while the actual sales were 614 units, or 6.8 percent lower.

Cullman County residential sales during October were 7 units higher than the 2010-14 average.

Supply: Cullman County area housing inventory totaled 561 units, which is 23.2 percent lower than supply in October 2014. Historical data indicates housing inventory (2010-14) typically decreases by 0.3 percent from September to October. The inventory-to-sales ratio in October was 9.8 months of housing supply. Restated, at the October sales pace, it would take 9.8 months to absorb the current inventory for sale. This is a marked improvement of 20.5 percent (12.4 months of supply) from last year, but it is 29 percent higher (7.6 months of supply) from the prior month. The market equilibrium (balance between supply and demand) for October is considered to be about 6.0+/- months so this represents an area where continued improvement would be welcome news.

Demand: October residential sales decreased 25 percent from the prior month. This direction is consistent with historical data indicating that October sales on average (2010-’14) decrease from September by 5 percent. Days on Market (DOM) until a listing sold was 139 days, 13.7 percent slower than the same period last year (161 days).

Pricing: The Cullman County median sales price in October was $128,900, an increase of 3.2 percent from October 2014 ($124,900). The median sales price was also 3.2 percent below the prior month. This month’s price direction is consistent with historical data (2010-14) reflecting that the October median sales price on average increases from September by 0.13 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.

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 average sales price dropped 17.8 percent year-over-year during October to $150.061.

The average days on the market for Cullman homes during October dropped from 161 last October to 139 this year.

Inventory is down to near 2008 levels in Cullman during October, dipping to just above 560 units.

The median sales price has largely been on the rise since 2011, reaching $129,900 during October.

Months of supply is well below the October peak of 20.7 set in 2010 but higher than desired at 9.8.

October sales in Cullman are 32.6 percent higher than the 2010 trough of 43 units.

Year-to-date October sales in Cullman are 1.6 percent below last year’s sales.

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 Cullman County Residential Monthly Report is work product developed in conjunction with the Cullman Association of Realtors to better serve Cullman 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.