Sales: According to the Valley Multiple Listing Service, Gadsden-area residential sales totaled 91 units during August, the same as in August 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.
Forecast: August sales were 11 units or 13.7 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’S 2017 sales forecast through August projected 607 closed transactions, while the actual sales were 604 units.
Supply: Gadsden-area housing inventory totaled 513 units. The August supply dipped 3.9 percent from July. This direction is consistent with historical data that indicate August inventory on average (2012-16) decreases from July by 1.5 percent.
The inventory-to-sales ratio in August was 5.6 months of housing supply. Restated, at the August sales pace, it would take 5.6 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be about 6 months during August.
Demand: August residential sales were up 4.6 percent from July. Historical data indicate that August sales on average (2012-16) increase from July by 5.3 percent.
Pricing: The Gadsden-area median sales price in August was $128,000, an 11.3 percent increase from August 2016 ($115,000). The median sales price decreased 5.2 percent compared to the prior month. This direction is consistent with historical data (2012-16) indicating that the August median sales price typically decreases from July by 7.7 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: “For the first time in 2017, we have increased our full-year growth outlook. The upgrade reflects economic activity gaining momentum at the end of the second quarter, though we see a great deal of uncertainty surrounding the forecast,” said Fannie Mae Chief Economist Doug Duncan. “The list of uncertainties now extends beyond the geopolitical and legislative, as the effects of Hurricanes Harvey and Irma will require time to untangle. Historically, natural disasters that hit heavily populated areas led to substantial near-term declines in economic activity but meaningful rebounds in subsequent quarters due to rebuilding efforts. Thus, economic growth in the second half of 2017 could still average a slightly stronger pace than the first half. Unfortunately, we continue to expect home sales to be flat during the second half of the year compared to the first half due to strong home price appreciation and lean inventories.”
Click here to generate more graphs from the Gadsden August Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.