November home sales in Alabama’s Wiregrass unchanged from last year
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Sales: According to the Wiregrass Multiple Listing Service, the Wiregrass area residential sales totaled 65 units during November, which is unchanged from the same period last year.November sales were 38 percent higher than the 2008 low of 47 units for Wiregrass. Year-to-date, sales in Wiregrass were 21 percent higher than the same period last year. Two more resources to review: Quarterly Report and Annual Report
Forecast: November sales were two units or 3 percent below our monthly forecast. ACRE’s year-to-date sales forecast through November projected 858 closed transactions while the actual sales were 813 units, a dip of 5.2 percent.
Year-to-date home sales during November for Wiregrass is up 20 percent compared to the same period a year ago.
Supply: Wiregrass area housing inventory totaled 825 units, a decrease of 13 percent from November 2014. Inventory was down 4.2 percent from the prior month. This direction is consistent with historical data that indicates November inventory on average (2010-14) decreases from the month of October by 0.6 percent. Inventory levels remain above normal but progress is being made. The inventory-to-sales ratio during November of 12.7 months of housing supply is down 13.2 percent from the same period last year. Restated, at the November sales pace, it would take 12.7 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 November so this indicates the continued presence of a buyer’s market.
Demand: November residential sales were 11 percent below the prior month. This direction is consistent with seasonal and local historical data that indicates the November sales on average (2010-14) decrease from the month of October by 9.3 percent. The average Days on Market (DOM) until listing sold was 188 days, 4 percent slower than last November 2014 (181 days).
Pricing: The Wiregrass Area median sales price in November was $125,900, an increase of 21 percent from November 2014 ($104,000) and 12 percent above last month ($112,500). This direction contrasts with historical seasonal data (2010-14) that reflects the November median sales price on average decreases from the month of October by 4.1 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 mixed housing and mortgage market data, our forecast for housing activity is little changed over the past several months,” said Fannie Mae Chief Economist Dave Duncan. “The supply of existing homes remains lean amid slowing new single-family construction, putting significant upward pressure on home prices. While this helps boost home equity, it hurts affordability, especially for potential first-time homebuyers. Meanwhile, we expect mortgage rates to rise only gradually through next year, and an improving income trend should help support affordability. We foresee total home sales improving further in 2016, albeit at less than half of the 8 percent increase expected this year.” For full report click here.
