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Sales: According to the Wiregrass Multiple Listing Service, Wiregrass area residential sales totaled 96 units during May, 14.3 percent above the number recorded during the same period last year. Year-to-date home sales in May were 12.5 percent higher than the same period last year. Two more resources to review: Quarterly Report and Annual Report.

For all of the Wiregrass area housing data, click here. 

Year-to-date home sales in Wiregrass through May rose 12.5 percent over last year.

Forecast: May sales were eight units or 9 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s year-to-date sales forecast through May projected 363 closed transactions while the actual sales were 370 units, 2 percent above the forecast sales.

Supply: Wiregrass area housing inventory totaled 792 units, a decrease of 19 percent from May 2015. Inventory was up 3.1 percent from the prior month. This direction is consistent with historical data that indicates May inventory on average (2011-15) increases from April by 2.5 percent.

The inventory-to-sales ratio during May of 8.3 months of housing supply is down 29 percent from the same period last year. Restated, at the May sales pace, it would take 8.3 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, so this indicates the continued presence of a buyer’s market.

Demand: May residential sales were 23 percent above the prior month. This direction is consistent with seasonal and local historical data that indicate May sales on average (2011-15) increase from April by 17.4 percent. The average days on market until a listing sold was 180 days, 4 percent slower than May 2015 (173 days).

Pricing: The Wiregrass area median sales price in May was $119,000, a decrease of 6 percent from May 2015 ($126,750) and a 0.6 percent dip from the previous month. This direction contrasts with historical seasonal data (2011-15) that reflect the May median sales price on average increases from April by 12.9 percent. It should be noted that the differing sample size (number of residential sales of the comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss prices, as they will vary from neighborhood to neighborhood.

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 the Wiregrass region during May was $142,664.

On average, homes sold in the Wiregrass region during May spent 180 days on the market.

Home sales in the Wiregrass region rose 23 percent from April to May.

There were 792 homes listed for sale in the Wiregrass region during May.

The median sales price for homes sold in the Wiregrass region during May was $119,000.

There were 8.3 months of supply on the market in the Wiregrass region during May.

There were 96 homes sold in the Wiregrass region during May.

The Wiregrass Residential Monthly Report is developed in conjunction with the Wiregrass Board of Realtors to better serve Wiregrass area consumers.