Click here to view or print the entire monthly 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 91 units during November, an increase of 4.6 percent or four units above the same period last year. Year-to-date sales through November are up 13 percent from 2014. Two more resources to review: Quarterly Report and Annual Report.

For all Tuscaloosa area real estate data, click here. 

Forecast: November sales landed 17 units below our monthly forecast. This is the second consecutive 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 November projected 1,394 closed transactions while the actual sales were 1,468 units, a rise of 5.3 percent.

Year-over-year home sales were up 4.6 percent in the Shoals area during November.

Supply: Shoals Area housing inventory totaled 1,065 units, a decrease of 9.2 percent from November 2014. Inventory also decreased 1.8 percent from the prior month. Historical data suggests housing inventory decreases generally by 3.8 percent from October to November. Inventory has favorably declined 12.3 percent from the month of November peak of 1,215 reached in 2010.

The inventory-to-sales ratio in November was 11.7 months of housing supply, a favorable decrease of 13.2 percent from last November. Restated, at the November sales pace, it would take 11.7 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months (not seasonally adjusted) during November .

Demand: November sales dropped 26 percent from the prior month. Historical data from 2010-14.  indicates typical sales increase 17 percent from October to November .

Pricing: The Shoals Area median sales price in November was $118,000, a decrease of 9.4 percent from November 2014. The median sales price also decreased 5.4 percent from the prior month. This direction contrasts with historical data indicating that the November median sales price on average (2010-14) increases by 2.8 percent from the month of October. 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 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 8.0 percent increase expected this year.” For full report click here.

The average sales price of $138,410 in Shoals during November represents a 12.4 percent year-over-year drop.

On average, Shoals homes are spending fewer days on the market during November, dropping to 80 in 2015.

Inventory is down in the Shoals area during November, dropping 9.2 percent year-over-year.

The median sales price during November in Shoals is also down to $118,000.

Months of supply during November in Shoals is not ideal at 11.7 but better than the peak of 18.1.

Year-to-date sales are up 13 percent during November compared to last year.

Sales in Shoals during November are down 27.9 percent from the 2006 peak of 126 units.

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.