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Sales: According to the Valley Multiple Listing Service, Gadsden area residential sales totaled 68 units during February, which is up 3 percent from February 2015. Year-to-date sales are 20 percent or 23 units higher than the same period in 2015. Two more resources to review: Quarterly Report and Annual Report.

Click here to view all of ACRE’s Gadsden residential data.

Forecast: February sales were eight units or 13 percent above our monthly forecast. Alabama Center for Real Estate’s (ACRE) year-to-date sales forecast through February projected 110 closed transactions while the actual sales were 136 units, a favorable difference of 23.6 percent.

Home sales in Gadsden during February increased 3 percent over the same period last year.

Supply: Gadsden area housing inventory totaled 671 units. The February supply declined 3 percent from the prior month. This direction contrasts with historical data that indicate February inventory on average (2011-15) increases from January by 2.4 percent.

The inventory-to-sales ratio in February remains higher than desired at 9.9 months of housing supply. Restated, at the February sales pace, it would take 9.9 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be about 6 months during February so this represents an area where continued improvement would be welcome news. The encouraging news is that the months of supply have dropped 44.5 percent from the February peak of 17.8 months of supply reached in 2010.

Demand: February residential sales were unchanged from the prior month. Historical data indicates that February sales on average (2011-15) increase from January by 9 percent.  

Pricing: The Gadsden area median sales price in February was $72,250, an decrease of 24.7 percent from last February ($99,950). The median sales price also decreased 18 percent when compared to the prior month. This direction is consistent with historical data (2011-15) indicating that the February median sales price typically decreases from January by 0.1 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: “Our February results show the most modest consumer home price expectations since late 2012,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “For consumers who think it’s a bad time to buy a home, whose share has trended up from its recent low last November, high home prices have been an increasingly contributing factor. A slower pace of home price appreciation may provide some relief for potential homebuyers, especially first-time buyers who couldn’t reap the benefits of selling a home at high prices to buy another one.” For the full story, click here.

The average home sold in Gadsden during February sold for $100,755.

On average, homes sold in Gadsden during February spent 142 days on the market.

Inventory during February in Gadsden stood at 671 units.

The median sales price for homes sold in Gadsden during February was $75,250.

There were 9.9 months of supply on the market in Gadsden during February.

Inventory continues to fall in the Gadsden area during the month of February.

Sales remained unchanged in February in Gadsden compared to January.

The Gadsden Residential Monthly Report is work product developed in conjunction with the Etowah-Cherokee County Association of Realtors to better serve its area consumers.