Click here to view or print the entire monthly report compliments of the ACRE Corporate Cabinet.

Sales: According to the Valley Multiple Listing Service, Gadsden-area residential sales totaled 62 units during December, up 38 percent from December 2015. Total 2016 sales were 17 percent or 136 units higher than 2015 sales. 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.

Home sales in December rose from 45 in 2015 to 62 in 2016, a 38 percent rise.

Forecast: December sales were 11 units or 21 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’S 2016 sales forecast through December projected 777 closed transactions, while the actual sales were 936 units, 20 percent higher than expected.

Supply: Gadsden-area housing inventory totaled 600 units. The December supply dipped 5 percent from October. This direction contrasts with historical data that indicate December inventory on average (2011-15) increases from November by 1.5 percent.

The inventory-to-sales ratio in December remained higher than desired at 9.7 months of housing supply. Restated, at the December sales pace, it would take 9.7 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be about 6 months during December, so continued improvement in this area would be welcome. The encouraging news is that the months of supply have dropped 48 percent from the December peak of 18.6 months of supply, reached in 2013.

Demand: December residential sales were up 5 percent from November. Historical data indicate that December sales on average (2011-15) increase from November by 0.1 percent.  

Pricing: The Gadsden-area median sales price in December was $109,150, a 13 percent decrease from December 2015 ($125,000). The median sales price increased 29 percent compared to the prior month. This direction is consistent with historical data (2011-15) indicating that the December median sales price typically increases from November by 14.6 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: “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 Gadsden December Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply. 

The Gadsden Residential Monthly Report is developed in conjunction with the Etowah-Cherokee County Association of Realtors to better serve its area consumers.