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 139 units during August, an increase of 20 percent or 23 units above the same month last year. Year-to-date home sales through August are up 26 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. 

Forecast: August sales were 51 percent or 47 units above the Alabama Center for Real Estate’s monthly forecast. ACRE’s year-to-date sales forecast through August projected 686 closed transactions, while the actual sales were 905 units, a favorable difference of 32 percent.

Supply: Athens/Limestone County housing inventory totaled 759 units, a decrease of 7.3 percent from August 2015. New-home inventory is up by 40 units year-over-year, while existing homes dipped by 95 units. August inventory was 7.4 percent below the prior month. This direction contrasts with historical data indicating that August inventory on average (2011-15) increases from July by 0.6 percent.

The inventory-to-sales ratio in August was 5.5 months of housing supply. Restated, at the August sales pace, it would take 5.5 months to absorb the current inventory for sale. This is a decrease (favorable direction) of 22 percent from 7.1 months of supply in August 2015. The market equilibrium (balance between supply and demand) during August is considered to be approximately 6 months.

Demand: August residential sales were 11.2 percent above the prior month. This direction contrasts with historical data associated with August sales, which indicate a typical decrease of 5 percent from July. Existing single-family home sales accounted for 64 percent of total sales (down from 72 percent in August 2015), and new home sales accounted for 35 percent (up from 28 percent in August 2015).

Pricing: The Athens/Limestone County area median sales price in August was $170,000, a decrease of 2.2 percent from last August. It was a 9.6 percent decrease from July. This direction contrasts with historical data (2011-15) reflecting that the August median sales price on average increases from July by 6 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: “Consumers have a fairly optimistic 12-month outlook on housing at the end of the summer home-buying season, supported by increased job confidence and more favorable expectations regarding their personal financial situations compared with this time last year,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “The return to a slight upward trend in the HPSI (Home Purchase Sentiment Index) during the spring and summer is, thus far, in line with our forecast, which calls for 4 percent growth in home sales in 2016 to the best level since 2006 and continued improvement for 2017.” For the full report, click here.

Click here to generate more graphs from the Athens/Limestone August 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.