Sales: According to the North Alabama Multiple Listing Service, Marshall County home sales in October were 10 percent above October 2015 at 75 sales for the month. Year-to-date sales in Marshall County were 6.6 percent above the same period last year. Another resource to review is the Annual Report.
Click here to check out all Marshall County housing data.
Forecast: October sales were 10 units or 15 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s year-to-date sales forecast through October projected 706 closed transactions, while the actual sales were 727 units, a favorable difference of 3 percent.
Supply: Marshall County housing inventory totaled 550 units, a decrease of 8.2 percent from October 2015. October inventory decreased 1 percent from September. This direction is consistent with historical data that indicate October inventory on average (2011-15) decreases from September by 5 percent.
The inventory-to-sales ratio has improved to 7.3 months of supply. Restated, at the October sales pace, it would take 7.3 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months during October, so continued improvement would be welcome news for market participants.
Pricing: The Marshall County area median sales price in October was $109,000, an increase of 4.3 percent from last October’s $104,500. The October median sales price was 4 percent below the September median sales price. Historical data indicate that the October median sales price on average (2011-15) increases from September by 1.5 percent. Pricing can fluctuate from month to month as the sample size of data is subject to seasonal buying patterns. ACRE recommends contacting a local real estate professional for additional market pricing information.
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.” For the full report, click here.
Click here to generate more graphs from the Marshall County October Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.