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 52 units during February, down 23 percent from February 2016. Home sales in Gadsden totaled 68 units during February 2016. 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.

Gadsden February home sales slipped compared to a year ago.

Forecast: February sales were 15 units or 22 percent below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’S 2017 sales forecast through February projected 123 closed transactions, while the actual sales were 117 units.

Supply: Gadsden-area housing inventory totaled 555 units. The February supply dipped 3 percent from January. This direction contrasts with historical data that indicate February inventory on average (2012-16) increases from January by 26 percent.

The inventory-to-sales ratio in February was 10.7 months of housing supply. Restated, at the February sales pace, it would take 10.7 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be about 6 months during February, so continued improvement in this area would be welcome. The encouraging news is that the months-of-supply figure has dropped 40 percent from the February peak of 17.8 months of supply, reached in 2010.

Demand: February residential sales were down 20 percent from January. Historical data indicate that February sales on average (2012-16) increase from January by 7 percent.  

Pricing: The Gadsden-area median sales price in February was $72,950, a 3 percent decrease from February 2016 ($75,250). The median sales price decreased 33 percent compared to the prior month. This direction contrasts with historical data (2012-16) indicating that the February median sales price typically increases from January by 23.7 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: “We expect the housing expansion to continue, albeit at a more moderate pace than last year given continued pressure on affordability,” said Fannie Mae Chief Economist Doug Duncan. “Depressed inventory, particularly in the more affordable segments, will likely constrain sales and push home price gains that outpace income growth. A faster pace of monetary tightening, unless accompanied by a stronger increase in household income, also poses downside risk to housing.”

Click here to generate more graphs from the Gadsden February 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.