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 129 units during December, an increase of 65 percent or 51 units above the same month in 2015. Home sales for 2016 through December were up 22.5 percent over 2015. Two more resources to review: Quarterly Report and Annual Report.

For all Athens/Limestone County area housing data, click here. 

Athens home sales in December improved greatly over December 2015, from 78 sales to 129.

Forecast: December sales were 61 percent or 49 units above the Alabama Center for Real Estate’s monthly forecast. ACRE’s 2016 sales forecast through December projected 1,028 closed transactions, while the actual sales were 1,408 units, a favorable difference of 38 percent.

Supply: Athens/Limestone County housing inventory totaled 638 units, a decrease of 4 percent from December 2015. New-home inventory is down by seven units year-over-year, while existing homes dipped by 52 units. December inventory was 7 percent below the prior month. This direction is consistent with historical data indicating that December inventory on average (2011-15) decreases from November by 1.5 percent.

The inventory-to-sales ratio in December was 4.9 months of housing supply. Restated, at the December sales pace, it would take 4.9 months to absorb the current inventory for sale. This is a favorable decrease of 42 percent from 8.5 months of supply in December 2015. The market equilibrium (balance between supply and demand) during December is considered to be approximately 6 months.

Demand: December residential sales were 6.6 percent above the prior month. This direction is consistent with historical data associated with December sales, which indicate a typical increase of 7.8 percent from November.

Pricing: The Athens/Limestone County area median sales price in December was $177,900, an increase of 1.1 percent from the previous December. It was a 3.1 percent increase from November. This direction is consistent with historical data (2011-15) reflecting that the December median sales price on average increases from November by 15.2 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: “The tenor of our forecast effectively remains unchanged: signs of cautious consumers this quarter, rising interest rates, the renewed increase in the U.S. dollar to a 14-year high, and heightened uncertainty in the political sphere suggest conservatism in our outlook,” said Fannie Mae Chief Economist Doug Duncan. “While we are encouraged that confidence is rising across investors, consumers, businesses, economists and homebuilders, much of it appears to be in anticipation that the forthcoming Administration and the new Congress will enact fiscal policies and deregulation that will help spur growth. While we believe that some pro-growth policies could be adopted next year, it would take time for them to benefit the economy, barring any offsetting initiatives such as more restrictive trade policies.”

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