Athens March home sales see 21 percent growth over previous year
Athens-area home sales this year have seen steady growth over 2015 numbers, a 21 percent increase for March and 22 percent for the year to date. (iStock)
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Sales: According to the North Alabama Multiple Listing Service, Athens/Limestone County residential sales totaled 104 units during March, an increase of 21 percent or 18 units above the same period last year. Year-to-date home sales through March are up 22 percent over the same period in 2015. Two more resources to review: Quarterly Report and Annual Report.
For all of Athens/Limestone County area housing data, click here.
Forecast: March sales were 16.8 percent or 15 units above our monthly forecast. Alabama Center for Real Estate‘s (ACRE) year-to-date sales forecast through March projected 208 closed transactions, while the actual sales were 269 units, a favorable difference of 29 percent.
There were 104 homes sold in the Athens area during March.
Supply: Athens/Limestone County housing inventory totaled 709 units, a decrease of 19 percent from March 2015. New home inventory is up by 25 units year-over-year, while existing home sales dipped by 134 units. March inventory was 1.9 percent above the prior month. This direction is consistent with historical data indicating that March inventory on average (2011-15) increases from the month of February by 3.2 percent.
The inventory-to-sales ratio in March was 6.8 months of housing supply. Restated, at the March sales pace, it would take 6.8 months to absorb the current inventory for sale. This is a decrease (favorable direction) of 33 percent from 10.2 months of supply in March 2015. The market equilibrium (balance between supply and demand) during March is considered to be approximately six months.
Demand: March residential sales were 28.4 percent above the prior month. This direction is consistent with historical data associated with March sales, which indicates a typical increase of 37.7 percent from February. Existing single-family home sales accounted for 68 percent (down from 73 percent in March 2015) of total sales, and new home sales accounted for 31 percent (up from 26 percent in March 2015).
Pricing: The Athens/Limestone County area median sales price in March was $184,500, an increase of 18.6 percent from last March. It was also a 10 percent decrease from the prior month. This direction contrasts with historical data (2011-15) reflecting that the March median sales price on average decreases from February by 4.1 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 it pertains to pricing trends is appropriate. ACRE recommends consulting a local real estate professional.
Industry perspective: “Growing pessimism over the last three months about the direction of the economy seems to be spilling over into home purchase sentiment,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “The gap between the share of consumers who think the economy is on the wrong track and the share who think it is on the right track has widened, nearly matching its reading last August, when concerns regarding China and oil prices led to the biggest stock market plunge in years. In turn, we saw dips this month in income growth perceptions, attitudes about the home selling climate, and job confidence, all of which contributed to the lowest Home Purchase Sentiment Index (HPSI) reading in the last year and a half. These declines seem to be at odds with recent news of solid overall job creation, but may reflect weakening economic performance in certain industries.”
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.
