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

Sales: According to the Cullman MLS, Cullman County area residential sales totaled 53 units in November, a 10.4 percent increase from the same period a year earlier. Year-to-date sales through November dipped 0.7 percent from 672 in November 2014 to 667 units in November 2015. Two more resources to review: Quarterly Report and Annual Report

Forecast: November sales were exactly on the mark with our monthly forecast. ACRE’s year-to-date sales forecast through November projected 712 closed transactions while the actual sales were 667 units, or 6.3 percent lower.

Cullman November home sales rose 10.4 percent over the same period last year.

Supply: Cullman County area housing inventory totaled 538 units, which is 25.5 percent lower than supply in November 2014. Historical data indicates housing inventory (2010-14) typically decreases by 4.5 percent from October to November. The inventory-to-sales ratio in November was 10.2 months of housing supply. Restated, at the November sales pace, it would take 10.2 months to absorb the current inventory for sale. This is a marked improvement of 32.5 percent (15 months of supply) from last year, but it is 18.8 percent higher (8.5 months of supply) from the low established in 2005. The market equilibrium (balance between supply and demand) for November is considered to be about approximately 6 months so this represents an area where continued improvement would be welcome news.

Demand: November residential sales decreased 7 percent from the prior month. This direction is consistent with historical data indicating that November sales on average (2010-14) decrease from October by 4 percent. Days on Market (DOM) until a listing sold was 177 days, 23 percent slower than the same period last year (144 days).

Pricing: The Cullman County median sales price in November was $135,900, a decrease of 3 percent from November 2014 ($139,900). The median sales price was also 5.4 percent above the prior month. This month’s price direction contrasts with historical data (2010-14) reflecting that the November median sales price on average decreases from October by 5 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 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 for Cullman homes during November dipped 18 percent compared to last year.

On average, Cullman homes sold during November spent 177 days on the market.

Supply during November in Cullman stood at 538 units.

For the most part, the median sales price in Cullman during November is on the rise, dropping just slightly by 3 percent this year.

Though months of supply is at 10.2, this metric continues to move toward market equilibrium.

Year-to-date sales dipped by 0.7 percent during November compared to last year.

Cullman home sales during November bottomed out at 19 during 2008 but have been holding steady between 40 and 60 units since that year.

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.