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, Morgan County (Decatur) residential sales totaled 108 units during December, up 23 percent from the same month in 2015. For the year, home sales through December increased 8 percent from 2015 sales. Another resource to review is the Annual Report.

Click here for all Morgan County residential data.

Morgan County home sales rose 22.7 percent in December compared to last year.

Forecast: December sales were 18 units or 20 percent above the Alabama Center for Real Estate’s monthly forecast. ACRE’s 2016 sales forecast through December projected 1,243 closed transactions, while the actual sales were 1,482 units, a 19 percent positive difference.

Supply: Morgan County area housing inventory totaled 673 units, a decrease of 13 percent from December 2015. Inventory was 5 percent below the prior month. Historical data indicate December inventory on average (2011-15) increases from November by 1.4 percent.

The inventory-to-sales ratio during December was 6.2 months of housing supply. Restated, at the December sales pace, it would take 6.2 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months during December. In December 2015, the supply stood at 8.8 months. The months of supply figure has declined 60 percent from the December peak reached in 2010 (15.4 months), which is encouraging news.

Demand: December residential sales rose 1 percent from the prior month. Historical data indicate December sales on average (2011-15) increase from November by 35 percent. The average days on market until a listing sold was 120 days, up 7 percent from the previous December.

Pricing: The Morgan County median sales price during December was $117,455, which is 5.3 percent below December 2015’s $124,000 and 10 percent below the November median sales price. Differing sample size from month to month can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood.

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 Morgan County December Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply. 

The Morgan County Residential Monthly Report is developed in conjunction with the Morgan County Association of Realtors to better serve area consumers.