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

Sales: According to the Cullman MLS, there were 59 residential sales in Cullman County during February, a 9.3 percent increase from one year ago. Current sales volume is 31.1 percent above the five-year February average of 45 closed transactions. Two more resources to review: Quarterly Report and Annual Report.

For all of Cullman’s real estate data, click here.

Forecast: February sales were nine units or 13 percent below the Alabama Center for Real Estate’s monthly forecast. ACRE forecast 130 residential sales year-to-date in the area, while there were 106 actual sales through February.

Demand: February residential sales decreased 25.5 percent from the prior month. Historical data indicate that February residential sales on average (’13-’17) increase from January by 5.9 percent. Homes selling in Cullman County in February averaged 110 days on the market, a decrease of 19.1 percent from one year ago.

Supply: A total of 535 homes were listed for sale in the area during February, representing an increase of 6.6 percent from one year ago. Total listings in the area increased 2.3 percent from the previous month. This is consistent with historical data trends from 2013-17 indicating that inventory on average increases from January by 2.3 percent.

Seeking balance: The inventory for sale divided by the current sales volume equals the number of months of supply. The market is considered to be in balance at approximately 6 months of supply. The inventory-to-sales ratio in February was 9.1 months of supply, down from 9.3 months one year ago.

Pricing: The median sales price in February was $144,900, an increase of 7.8 percent from one year ago. The median sales price was 20.9 percent above the prior month. Historical data trends from 2013-2017 indicate that the median sales price on average increases by 10.8 percent from January to February. Pricing can fluctuate from month to month as the sample size of data (closed transactions) is subject to seasonal buying patterns. ACRE recommends consulting a local real estate professional.

Industry perspective: The 10-year treasury is a crucial indicator of economic expansion. As of March 1, 2018, the 10-year treasury stood at 2.88 percent, a slight increase from last month’s rate of 2.86 percent. Mortgage rates also experienced a slight increase recently as the current rate on a 30-year fixed-rate mortgage is 4.57 percent, up from 4.38 percent one month ago. As the economy continues to strengthen, people will have more money in their pockets with the intent to spend. This increase in spending will most likely create higher stock prices and lower bond prices. With this increase of confidence in the market, mortgage interest rates can be expected to increase.

The National Association of Home Builders (NAHB) produces economic analyses of the home-building industry based on government data. The Housing Market Index (HMI) depicts market conditions for the sale of new homes. The HMI ranges from 0 to 100; a rate greater than 50 represents good sales conditions.

The HMI in the South has stayed relatively steady in the past few months with a score of 73. However, the HMI is lower in some regions of the United States, such as the Northeast, which has a rate of 56. The West has a higher HMI of 77, and a better market for good housing conditions.

The Federal Housing Finance Agency uses the House Price Index (HPI) to measure the average price changes in repeat sales or refinancing on the same properties. The FHFA’s national HPI was up 6.7 percent from the previous year compared to Alabama, which has increased from the previous year by 5.6 percent. The HPI rose in all 49 states except for Mississippi.

Compared to the national housing market conditions, Alabama’s real estate market has been showing improvement. Although total residential sales in Alabama decreased 2.3 percent from January 2017, the statewide median sales price increased 2.3 percent from January 2017. Statewide, homes in Alabama are selling much more quickly than in recent years as the average days on the market decreased 19.6 percent from one year ago.

Click here to generate more graphs from the Cullman February Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply. 

The Cullman County Residential Monthly Report is developed in conjunction with the Cullman Association of Realtors to better serve Cullman-area consumers.