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

Sales: According to the North Alabama Multiple Listing Service, Athens/Limestone County residential sales totaled 78 units during December, a decrease of 18 percent or 17 units below the same period last year. December sales peaked out at 95 during 2014 before dropping off this December. Sales had been up and down for most of the past decade before seeing consistent improvement during and after 2012. Year-to-date sales through December were up 18 percent from 2014. Two more resources to review: Quarterly Report and Annual Report.

For all of Athens/Limestone County area housing data, click here. 

Home sales for Athens during December dipped slightly to 78 units in 2015.

Forecast: December sales were 5 percent or 4 units above our monthly forecast. Alabama Center for Real Estate‘s (ACRE) year-to-date sales forecast through December projected 930 closed transactions while the actual sales were 1,144 units, a rise of 23 percent.

Supply: Athens/Limestone County housing inventory totaled 664 units, a decrease of 15.4 percent from December 2014. New home inventory is up by seven units year-over-year, while existing home sales dipped by 91 units. December inventory was 7 percent below the prior month. This direction is consistent with historical data indicating that December inventory on average (2010-14) decreases from the month of November by 5.6 percent.

The inventory-to-sales ratio in December was 8.5 months of housing supply. Restated, at the December sales pace, it would take 8.5 months to absorb the current inventory for sale. This is an increase (unfavorable direction) of 3 percent from 8.3 months of supply in December 2014. The market equilibrium (balance between supply and demand) during the month of December is considered to be approximately 6 months.

Demand: December residential sales were 10.3 percent below the prior month. This direction is consistent with historical data associated with December sales, which indicates a typical dip of 2.4 percent from November. Existing single family home sales accounted for 71 percent (up from 69 percent in December 2014) of total sales and new homes sales accounted for 29 percent (down from 31 percent in December 2014).

Pricing: The Athens/Limestone County area median sales price in December was $175,900, an increase of 6.7 percent from last December. It was also a 31 percent increase from the prior month. This direction is consistent with historical data (2010-14) reflecting that the December median sales price on average increases from the month of November by 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 sales price for a home in Athens during December was $193,150.

On average, homes sold during December in Athens spent 108 days on the market.

Inventory dropped by 15 percent during December in Athens compared to 2014.

The median sales price also increased to $175,900 from last December in Athens, a rise of 7 percent.

While not at equilibrium the December months of supply in Athens held steady at 8.5 months of supply.

Year-to-date home sales during December in Athens increased 18 percent over last year.

Total sales in Athens during December decreased 10 percent from November.

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 Athens/Limestone County Residential Monthly Report is work product developed in conjunction with the Athens/Limestone County Association of Realtors to better serve North Alabama 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.