Morgan County sees year-over-year rise in home sales during February
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Sales: According to the North Alabama Multiple Listing Service, Morgan County (Decatur) residential sales totaled 96 units during February, an increase of 2 percent or two units above the same period last year. Two more resources to review: Quarterly Report and Annual Report.
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Forecast: February sales were 14 units or 17 percent above our monthly forecast. ACRE’s year-to-date sales forecast through February projected 82 closed transactions while the actual sales were 96 units, a 15 percent rise.
Home sales in Morgan County increased 2 percent compared to last February.
Supply: Morgan County area housing inventory totaled 775 units, a decrease of 11 percent from February 2015. Inventory was also 0.6 percent below the prior month. Historical data indicates February inventory on average (2011-15) increases from the month of January by 0.3 percent. The inventory-to-sales ratio during February was 8.1 months of housing supply. Restated, at the February sales pace, it would take 8.1 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 February. Last February, the months of supply stood at 9.2 months, so the 12.6 percent decrease points toward a market favoring sellers. The months of supply has now declined 47 percent from the month of February peak (15.3 months) reached in 2011 which is encouraging news.
Demand: February residential sales were 17 percent above the prior month. This is consistent with historical data, which indicates February sales on average (2011-15) increase from the month of January by 26 percent. The average Days on Market (DOM) until a listing sold was 108 days, down 27 percent from last February.
Pricing: The Morgan County median sales price during February was $115,000, which is 0.9 percent below February 2015’s $116,062 but 3.7 percent ($110,950) above the month prior. This is consistent with historical data (2011-15) which indicates the median sales price increases 3 percent from January. It should also be noted that the differing sample size (# of residential sales of comparative months) can contribute to statistical volatility including pricing. We highly recommend consulting with a local real estate professional to discuss pricing as it can and will vary from neighborhood to neighborhood.
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 Morgan County Residential Monthly Report is work product developed in conjunction with the Morgan County Association of Realtors to better serve area consumers.
