Published On: 05.27.17 | 

By: ACRE Research

April home prices in Gadsden up from a year ago

The median sales price for homes in Gadsden during April increased 19 percent from the same month in 2016. (ACRE)

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 78 units during April, down 16 percent from April 2016, when sales totaled 93 units. 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.

Forecast: April sales were one unit or 1 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’S 2017 sales forecast through April projected 276 closed transactions, while the actual sales were 278 units.

Supply: Gadsden-area housing inventory totaled 553 units. The April supply dipped 1 percent from March. This direction contrasts with historical data that indicate April inventory on average (2012-16) increases from March by 1 percent.

The inventory-to-sales ratio in April was 7.1 months of housing supply. Restated, at the April sales pace, it would take 7.1 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be about 6 months during April. The encouraging news is that the months-of-supply figure has dropped 52 percent from the April peak of 14.9 months of supply, reached in 2011.

Demand: April residential sales were down 6 percent from March. Historical data indicate that April sales on average (2012-16) increase from March by 2 percent.  

Pricing: The Gadsden-area median sales price in April was $107,000, a 19 percent increase from April 2016 ($90,000). The median sales price increased 24 percent compared to the prior month. This direction is consistent with historical data (2012-16) indicating that the April median sales price typically increases from March by 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 Home Purchase Sentiment Index returned to its longer-term trend line after reclaiming ground lost last month. This is aligned with our market forecast of about 3 percent sales growth in 2017,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Historically strong inflation-adjusted house price gains are tempering consumer sentiment, whereas consumer optimism regarding the ease of getting a mortgage reached a survey high. On balance, housing continues on a gradual growth track.”

Click here to generate more graphs from the Gadsden April 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.