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

Sales: According to the Wiregrass Multiple Listing Service, Wiregrass area residential sales totaled 85 units during December, 46 percent above the number recorded during the same month the previous year. Home sales for 2016 through December were 6 percent higher than 2015 sales. Two more resources to review: Quarterly Report and Annual Report.

For all of the Wiregrass area housing data, click here. 

Home sales during December in the Wiregrass region rose 46 percent over the previous December.

Forecast: December sales were 26 units and 44 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s 2016 sales forecast through December projected 901 closed transactions, while the actual sales were 925 units, 2.6 percent above the forecast sales.

Supply: Wiregrass area housing inventory totaled 695 units, a decrease of 12 percent from December 2015. Inventory was down 5.2 percent from the prior month. This direction is consistent with historical data that indicate December inventory on average (2011-15) decreases from November by 5.8 percent.

The inventory-to-sales ratio during December of 8.2 months of housing supply was down 40 percent from the same period a year earlier. Restated, at the December sales pace, it would take 8.2 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, so this indicates the continued presence of a buyer’s market.

Demand: December residential sales were up 9 percent from the prior month. Historical data indicate December sales on average (2011-15) decrease from November by 6.2 percent. The average days on market until a listing sold was 175 days, faster than December 2015’s 188 days.

Pricing: The Wiregrass area median sales price in December was $130,000, an increase of 34 percent from December 2015 ($96,750) and a 30 percent increase from the previous month. This direction is consistent with historical seasonal data (2011-15) that reflect the December median sales price on average increases from November by 5.4 percent. It should be noted that the differing sample size (number of residential sales of the comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss prices, as they 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 Wiregrass Region December Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply. 

The Wiregrass Residential Monthly Report is developed in conjunction with the Wiregrass Board of Realtors to better serve Wiregrass area consumers.