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 35 units during December, a 37.5 percent decrease from the same period a year earlier. Year-to-date sales through December dipped 3.6 percent from 728 in December 2014 to 702 units in December 2015. Two more resources to review: Quarterly Report and Annual Report.

Demand: December residential sales decreased 34 percent from the prior month. This direction is consistent with historical data indicating that December sales on average (2010-14) decrease from November by 4 percent. Days on Market (DOM) until a listing sold was 131 days, 10 percent faster than the same period last year (146 days).

For all of Cullman’s area real estate data, click here. 

Cullman area sales during December fell to 35 units in 2015.

Forecast: December sales were 14 units or 28 percent below our monthly forecast. ACRE’s year-to-date sales forecast through December projected 761 closed transactions while the actual sales were 702 units, or 7.7 percent lower.

Supply: Cullman County area housing inventory totaled 535 units, which is 16 percent lower than supply in December 2014. Historical data indicates housing inventory (2010-14) typically decreases by 8.5 percent from November to December. There was a decrease of 0.6 percent during that time in 2015. The inventory-to-sales ratio in December was 15.3 months of housing supply. Restated, at the December sales pace, it would take 15.3 months to absorb the current inventory for sale. This is a marked improvement of 33.6 percent (23 months of supply) from the 2009 peak, but it is 35 percent higher (11.4 months of supply) from the same period last year. The market equilibrium (balance between supply and demand) for December is considered to be about approximately 6 months so this represents an area where continued improvement would be welcome news.

Pricing: The Cullman County median sales price in December was $129,900, an increase of 21 percent from December 2014 ($107,400). The median sales price was also 4.4 percent below the prior month. This month’s price direction contrasts with historical data (2010-14) reflecting that the December median sales price on average increases from November by 1.2 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: “Consumers ended the year on an improved note with regard to their income, job security, and overall economic outlook. This more positive consumer sentiment brought the HPSI up a few points, moving the index up for all of 2015,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Brightening economic prospects, if sustained, should stimulate demand for homeownership. However, continuing upward pressure on rental prices and constrained housing supply, particularly for starter homes, may mean prospective first-time homebuyers could face affordability constraints.” For full report click here.

The average home sold in Cullman during December went for $141,312.

On average, home sold in Cullman during December spent 131 days on the market.

Total inventory in December in Cullman was at 535 units.

The median sales price during December in Cullman was $129,900.

Inventory to sales was up in December, but still far below the all-time December peak of 39.1.

Year-to-date sales in Cullman during December dipped 3.6 percent compared to 2014.

Cullman did not finish 2015 as strong as 2015, with total sales being 19 units below the prior 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.