Sales: According to the Valley Multiple Listing Service, Gadsden-area residential sales totaled 68 units during October, down 3 percent from October 2015. Year-to-date sales are 15 percent or 108 units higher than the same period in 2015. Two more resources to review: Quarterly Report and Annual Report.
Click here to view all of the Alabama Center for Real Estate’s Gadsden residential data.
Forecast: October sales were four units or 6 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’S year-to-date sales forecast through October projected 675 closed transactions, while the actual sales were 815 units, 20 percent higher than expected.
Supply: Gadsden-area housing inventory totaled 656 units. The October supply dipped 0.2 percent from September. This direction contrasts with historical data that indicate October inventory on average (2011-15) increases from September by 1.2 percent.
The inventory-to-sales ratio in October remains higher than desired at 9.6 months of housing supply. Restated, at the October sales pace, it would take 9.6 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be about 6 months during October, so continued improvement in this area would be welcome. The encouraging news is that the months of supply have dropped 39 percent from the October peak of 15.7 months of supply, reached in 2010.
Demand: October residential sales were down 21 percent from September. Historical data indicate that October sales on average (2011-15) decrease from September by 2.5 percent.
Pricing: The Gadsden-area median sales price in October was $116,000, a 2 percent increase over October 2015 ($114,000). The median sales price increased 16.6 percent compared to the prior month. This direction contrasts with historical data (2011-15) indicating that the October median sales price typically decreases from September by 12.7 percent. 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 Gadsden October Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.