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

Sales: According to the Multiple Listing Service of the Shoals Area Association of Realtors, Shoals area residential sales totaled 129 units during December, down 6.5 percent from the same period in 2015. Another resource to review is the Annual Report. Total sales for 2016  through December were up 2.7 percent from the same period of 2015.

For all Shoals-area real estate data, click here. 

Shoals home sales in December fell 6.5 percent compared to the same month in 2015.

Forecast: December’s 129 home sales were 10 units or 8 percent above the Alabama Center for Real Estate’s monthly forecast. ACRE’s 2016 sales forecast through December projected 1,533 closed transactions, and actual closed sales were at 1,650, a 7 percent positive difference.

Supply: Shoals area housing inventory totaled 950 units, a decrease of 4 percent from December 2015. Inventory has declined 13.7 percent from the December peak of 1,101 units in 2010.

The inventory-to-sales ratio in December was 7.4 months of housing supply, a increase of 3 percent from December 2015. Restated, at the December sales pace, it would take 7.4 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.

Demand: December sales decreased 6.5 percent from the prior month. Historical data from 2011-15 indicate sales typically increase 6.3 percent from November to December.

Pricing: The Shoals area median sales price in December was $122,000, a 5.1 percent increase from $116,100 in December 2015. The median sales price decreased 8.3 percent from the prior month. This direction is consistent with historical data indicating that the December median sales price on average (2011-15) decreases by 7.7 percent from November. 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 Shoals December Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply. 

The Shoals Area Residential Monthly Report is developed in conjunction with the Shoals Area Association of Realtors to better serve its area consumers.