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

Sales: According to the Multiple Listing Service of the Shoals Area Association of Realtors, Shoals Area residential sales totaled 149 units during May, unchanged from the same period last year. Another resource to review is the Annual Report.

For all Shoals-area real estate data, click here. 

Year-to-date home sales in Shoals through May dipped slightly by three units compared to last year.

Forecast: May sales landed five units above the Alabama Center for Real Estate’s monthly forecast. ACRE’s year-to-date sales forecast through May projected 604 closed transactions, and actual closed sales were at 631, a 4 percent positive difference.

Supply: Shoals Area housing inventory totaled 996 units, a decrease of 12.2 percent from May 2015. Inventory also increased by six units from the previous month. Historical data suggests housing inventory increases generally by 2.7 percent from April to May. Inventory has favorably declined 18.2 percent from the May peak of 1,218 units in 2014.

The inventory-to-sales ratio in May was 6.7 months of housing supply, a decrease of 12 percent from last May. Restated, at the May sales pace, it would take 6.7 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months during May.

Demand: May sales decreased 9.6 percent from the prior month. Historical data from 2011-15 indicate typical sales increase 0.2 percent from April to May.

Pricing: The Shoals Area median sales price in May was $118,900, a decrease from $119,000 in May 2015. The median sales price also decreased 4.8 percent from the prior month. This direction contrasts with historical data indicating that the May median sales price on average (2011-15) increases by 2.1 percent from April. Pricing can fluctuate from month to month as the sample size of data (closed transactions) is subject to seasonal buying patterns. ACRE recommends contacting a local real estate professional for additional market pricing information.

Industry perspective: “Continued home price appreciation has been squeezing housing affordability, driving a two-year downward trend in the share of consumers who think it’s a good time to buy a home,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “The current low mortgage rate environment has helped ease this pressure, and fewer than half of consumers expect rates to go up in the next year. While the May increase in income growth perceptions could provide further support to prospective home buyers as the spring/summer home-buying season gains momentum, the effect may be muted by May’s discouraging jobs report.” For the full report on home purchase sentiment, click here.

The average sales price for homes sold in Shoals during May was $135,640.

On average, homes sold in Shoals during May spent 78 days on the market.

Home sales increased 9.6 percent from April to May in the Shoals area.

There were 6.7 months of supply on the market in the Shoals area during May.

There were 996 units listed for sale in Shoals during May.

The median sales price for homes sold during May in Shoals was $118,900.

There were 149 units sold in the Shoals area during May.

The Shoals Area Residential Monthly Report is developed in conjunction with the Shoals Area Association of Realtors to better serve its area consumers.