Sales: According to the Multiple Listing Service of the Shoals Area Association of Realtors, Shoals area residential sales totaled 124 units during October, up 0.8 percent from the same period last year. Another resource to review is the Annual Report. Year to date, sales through October were up 0.7 percent from the same period last year.
For all Shoals-area real estate data, click here.
Forecast: October’s 124 home sales were four units or 3 percent above the Alabama Center for Real Estate’s monthly forecast. ACRE’s year-to-date sales forecast through October projected 1,306 closed transactions, and actual closed sales were at 1,386, a 6 percent positive difference.
Supply: Shoals area housing inventory totaled 971 units, a decrease of 10 percent from October 2015. Inventory has favorably declined 21 percent from the October peak of 1,225 units in 2010.
The inventory-to-sales ratio in October was 7.8 months of housing supply, a decrease of 11 percent from last October. Restated, at the October sales pace, it would take 7.8 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.
Demand: October sales decreased 13 percent from the prior month. Historical data from 2011-15 indicate sales typically increase 0.8 percent from September to October.
Pricing: The Shoals area median sales price in October was $126,300, a 1.2 percent increase from $124,800 in October 2015. The median sales price decreased 5.7 percent from the prior month. This direction contrasts with historical data indicating that the October median sales price on average (2011-15) increases by 4 percent from September. Pricing can fluctuate from month to month as the sample size of data (closed transactions) 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.”
Click here to generate more graphs from the Shoals October Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.