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

Sales: According to the North Alabama Multiple Listing Service, Athens/Limestone County residential sales totaled 125 units during July, a decrease of 0.8 percent or one unit below the same month last year. Year-to-date home sales through July are up 27 percent over the same period in 2015. Two more resources to review: Quarterly Report and Annual Report.

For all Athens/Limestone County area housing data, click here. 

Year-to-date home sales in Athens through July rose 27 percent over this time last year.

Forecast: July sales were 17 percent or 18 units above the Alabama Center for Real Estate’s monthly forecast. ACRE’s year-to-date sales forecast through July projected 594 closed transactions, while the actual sales were 766 units, a favorable difference of 29 percent.

Supply: Athens/Limestone County housing inventory totaled 820 units, a decrease of 4.3 percent from July 2015. New-home inventory is up by 58 units year-over-year, while existing homes dipped by 97 units. July inventory was 1.5 percent above the prior month. This direction is consistent with historical data indicating that July inventory on average (2011-15) increases from June by 1.1 percent.

The inventory-to-sales ratio in July was 6.6 months of housing supply. Restated, at the July sales pace, it would take 6.6 months to absorb the current inventory for sale. This is a decrease (favorable direction) of 3.6 percent from 6.8 months of supply in July 2015. The market equilibrium (balance between supply and demand) during July is considered to be approximately 6 months.

Demand: July residential sales were 5.3 percent below the prior month. This direction contrasts with historical data associated with July sales, which indicate a typical increase of 11 percent from June. Existing single-family home sales accounted for 69 percent of total sales (down from 72 percent in July 2015), and new home sales accounted for 30 percent (up from 29 percent in July 2015).

Pricing: The Athens/Limestone County area median sales price in July was $188,000, an increase of 12.2 percent from last July. It was a 14.6 percent increase from June. This direction is consistent with historical data (2011-15) reflecting that the July median sales price on average increases from June by 1.3 percent. Pricing can fluctuate from month to month as the sample size of data (closed transactions) is subject to seasonal buying patterns. ACRE recommends consulting a local real estate professional.

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 Athens/Limestone July Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply. 

The Athens/Limestone County Residential Monthly Report is developed in conjunction with the Athens/Limestone County Association of Realtors to better serve North Alabama consumers.