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

Sales: According to the Wiregrass Multiple Listing Service, the Wiregrass area residential sales totaled 58 units during December, which is one more than what was recorded during the same period last year.December sales were 26 percent higher than the 2008 low of 46 units for Wiregrass. Year-to-date, sales in Wiregrass were 19 percent higher than the same period last year. Two more resources to review: Quarterly Report and Annual Report.

For all of the Wiregrass area housing data, click here. 

Sales rose 2 percent in December compared to the prior year to 58 units in Wiregrass.

Forecast: December sales were three units or 5 percent below our monthly forecast. ACRE’s year-to-date sales forecast through December projected 919 closed transactions while the actual sales were 871 units, a dip of 5.2 percent.

Supply: Wiregrass area housing inventory totaled 792 units, a decrease of 14 percent from December 2014. Inventory was down 4 percent from the prior month. This direction is consistent with historical data that indicates December inventory on average (2010-14) decreases from the month of November by 5 percent. Inventory levels remain above normal but progress is being made. The inventory-to-sales ratio during December of 13.7 months of housing supply is down 15.5 percent from the same period last year. Restated, at the December sales pace, it would take 13.7 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 December so this indicates the continued presence of a buyer’s market.

Demand: December residential sales were 10.8 percent below the prior month. This direction is right on the mark with seasonal and local historical data that indicates the December sales on average (2010-14) decrease from the month of November by 10.8 percent. The average Days on Market (DOM) until listing sold was 148 days, 10.3 percent slower than last December 2014 (165 days).

Pricing: The Wiregrass Area median sales price in December was $96,750, a decrease of 0.8 percent from December 2014 ($97,500) and 23 percent below last month ($125,900). This direction contrasts with historical seasonal data (2010-14) that reflects the December median sales price on average increases from the month of November by 11 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: “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 the full report, click here.

The average home sold in Wiregrass during December sold for $117,749.

On average, homes sold during December in Wiregrass spent 148 days on the market.

Inventory dropped 14 percent in Wiregrass compared to December 2014.

The median sales price in Wiregrass during December dropped 1 percent compared to 2014.

Months of supply is still high but trending in the right direction for Wiregrass during December.

Year-to-date sales are up 19 percent in Wiregrass during December compared to 2014.

Wiregrass finished 2015 with 48 sales, 2 percent more than the previous December.

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 Wiregrass Residential Monthly Report is work product developed in conjunction with the Wiregrass Board of Realtors to better serve Wiregrass area consumers. The ACRE monthly report is provided to illustrate the “general” market direction & trends when comparing prior periods with the most current residential data available. 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.