Sales: According to the Valley Multiple Listing Service, Gadsden-area residential sales totaled 71 units during October, compared to 68 in October 2016, a 4.4 percent increase. Year-to-date sales through October were 1.6 percent ahead of 2016 sales. 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: ACRE’S 2017 sales forecast through October projected 753 closed transactions, while the actual sales were 759 units.
Supply: Gadsden-area housing inventory totaled 498 units. The October supply increased 0.8 percent from September.
The inventory-to-sales ratio in October was 7 months of housing supply. Restated, at the October sales pace, it would take 7 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be about 6 months.
Demand: October residential sales were down 15.5 percent from September.
Pricing: The Gadsden-area median sales price in October was $92,500, a 20.3 percent decrease from October 2016 ($116,000). The median sales price decreased 17.4 percent compared to the prior month. This direction is consistent with historical data (2012-16) indicating that the October median sales price typically decreases from September by 4.6 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 first print of third-quarter economic growth showed surprising resiliency. The expected economic hit from the recent natural disasters either failed to materialize or was drowned out by business optimism,” said Fannie Mae Chief Economist Doug Duncan. “Recent data showed a stronger pickup in domestic demand than anticipated, leading us to increase our growth forecast for the final quarter of this year and coming quarters. We also revised higher our 2018 growth forecast to 2 percent. Tax cuts, if enacted, present upside risk to our growth forecast for next year but could also lead to more aggressive Fed action. Housing still remains a drag on the economy, as shortages of labor and available lots, coupled with rising building material prices, further complicate existing inventory, affordability and sales challenges.”
Click here to generate more graphs from the Gadsden October Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.