Marshall County year-end sales up 8 percent over 2014
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Sales: According to the North Alabama Multiple Listing Service, Marshall County sales were 8.5 percent below December 2014 at 54 sales for the month. Year-to-date sales through December were up by 8 percent or 59 units from 2014. Sales for the month of December, over the past seven years, have been up and down but have largely remained between 45 to 60 units. Two more resources to review: Quarterly Report and Annual Report.
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Home sales in Marshall County during December reached 54 units in 2015.
Forecast: December sales were eight units or 5.2 percent below our monthly forecast. Alabama Center for Real Estate’s (ACRE) year-to-date sales forecast through December projected 782 closed transactions while the actual sales were 802 units.
Supply: Marshall County housing inventory totaled 538 units, a decrease of 16 percent from December 2014. December inventory also decreased 7.4 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 5.7 percent. Inventory levels continue to move in a downward trajectory in Marshall County during December. The inventory-to-sales ratio during December remains higher than desired at 10 months of housing supply. Restated, at the December sales pace, it would take 10 months to absorb the current inventory for sale. This is 8.2 percent lower than last December ratio of 10.8 and up slightly from November. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months during the month of December so this represents an area where continued improvement would be welcome news for market participants.
Demand: Marshall County residential sales during December decreased 18 percent from the prior month. This direction is consistent with but higher than historical data indicating that December sales on average (2010-14) decrease from the month of November by 1 percent.
Pricing: The Marshall County area median sales price in December was $120,800, an increase of 34 percent from last December ($89,900). The December median sales price was also 1.4 percent below the prior month. Historical data indicates that the December median sales price on average (2010-14) decreases from the month of November by 2.3 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 to pricing trends is appropriate and we recommend contacting a local real estate professional for additional market pricing information.
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.
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 Marshall County Residential Monthly Report is work product developed in conjunction with the Marshall County Board 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.
