Sales: According to the Cullman MLS, Cullman County area residential sales totaled 57 units during October, unchanged from the same period a year earlier. Year-to-date sales are up 2 percent from the same period in 2015. Two more resources to review: Quarterly Report and Annual Report.
For all of Cullman’s real estate data, click here.
Demand: October residential sales decreased 29 percent from the prior month. This direction contrasts with historical data indicating that October sales on average (2011-15) increase from September by 5.1 percent. Days on market until a listing sold was 141 days, 1.4 percent slower than the same period last year (139 days).
Forecast: October sales were one unit or 1.7 percent above the Alabama Center for Real Estate’s monthly forecast. ACRE’s year-to-date sales forecast through October projected 593 closed transactions, while the actual sales were 625, a favorable difference of 5.4 percent.
Supply: Cullman County area housing inventory totaled 530 units, which is 5.5 percent below the supply in October 2015. The inventory-to-sales ratio in October was 9.3 months of housing supply. Restated, at the October sales pace, it would take 9.3 months to absorb the current inventory for sale. This is 55 percent lower than the 2010 peak (20.7 months of supply). The market equilibrium (balance between supply and demand) for October is approximately 6 months, so continued improvement in this area would be welcome news.
Pricing: The Cullman County median sales price in October was $134,900, an increase of 4.7 percent from October 2015 ($128,900). The median sales price was 6.6 percent below the prior month. This month’s price direction contrasts with historical data (2011-15) reflecting that the October median sales price on average increases from September by 3.6 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: “Since July, more consumers, on net, have steadily expected mortgage rates to rise and home price appreciation to moderate,” said Doug Duncan of Fannie Mae. “Furthermore, consumers’ perception of their income over the past year deteriorated sharply in October to the worst showing since early 2013, weighing on the index. However, this component of the HPSI (home purchase sentiment index) is volatile from month to month, and the firming trend in wage gains from the October jobs report, if sustained, may foreshadow an improving view in the near future.”
Click here to generate more graphs from the Cullman October Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.