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

Sales: According to the Wiregrass Multiple Listing Service, Wiregrass area residential sales totaled 79 units during July, 11.2 percent below the number recorded during the same period last year. Year-to-date home sales in July were 7.3 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. 

Residential sales in the Wiregrass region through July were up 7.3 percent over the same period last year.

Forecast: July sales were 11 units or 10 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s year-to-date sales forecast through July projected 544 closed transactions, while the actual sales were 545 units, .18 percent above the forecast sales.

Supply: Wiregrass area housing inventory totaled 810 units, a decrease of 14 percent from July 2015. Inventory was up 0.5 percent from the prior month. This direction contrasts with historical data that indicate July inventory on average (2011-15) decreases from June by 1.2 percent.

The inventory-to-sales ratio during July of 10.3 months of housing supply is down 3.3 percent from the same period last year. Restated, at the July sales pace, it would take 10.3 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months during July, so this indicates the continued presence of a buyer’s market.

Demand: July residential sales were down 17.7 percent from the prior month. Historical data indicate July sales on average (2011-15) increase from June by 5 percent. The average days on market until a listing sold was 161 days,16 percent faster than July 2015 (192 days).

Pricing: The Wiregrass area median sales price in July was $187,000, an increase of 38.5 percent from July 2015 ($135,000) and a 41.7 percent increase from the previous month. This direction contrasts with historical seasonal data (2011-15) that reflect the July median sales price on average decreases from June by 5.1 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: “Financial volatility resulting from Brexit has created some uncertainty among investors as yields on government bonds have dropped sharply, Treasury yield curves have flattened over the past month, and the Chinese Yuan has depreciated to a six-year low against the dollar,” said Fannie Mae Chief Economist Doug Duncan. “In addition, our view on interest rates continues to be ‘low for long’ as we believe a Fed decision to raise interest rates will likely be on hold until June of 2017. Brexit’s economic impact on the U.S. will likely be limited, especially from a trade perspective, and should be a near-term positive for the housing and mortgage market as falling mortgage rates have prompted new refinance demand.” For the full report, click here.

Click here to generate more graphs from the Wiregrass Region July Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply. 

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