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

Sales: Calhoun County residential sales totaled 93 units during February, down 8.8 percent from the same month last year. In February, 98 percent of residential sales in the area were existing single-family homes, while 1 percent were condos and 1 percent were newly constructed homes. Two more resources to review: Quarterly Report and Annual Report.

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

Forecast: February sales were 18 units or 16.2 percent below the Alabama Center for Real Estate’s (ACRE) monthly forecast of 111 closed transactions in the area. ACRE projected 211 sales in the area year-to-date, while there were 201 actual sales through February.

Supply: Calhoun County housing inventory totaled 768 units, a decrease of 19.1 percent from February 2017. Inventory increased 0.5 percent from the prior month. Historical data indicate that February inventory on average (2013-2017) decreases by 1.7 percent from the month of January.

Demand: February residential sales decreased 13.9 percent from January. Historical data from Calhoun County indicate that February sales on average (2013-2017) increase from January by 1.1 percent. The average number of days on the market until a listing sold was 106 days, down 20.9 percent from the previous February. Homes sold at a quicker pace during February, as the five-year average for the month is 137 days on the market.

Seeking balance: The inventory for sale divided by the current monthly sales volume equals the number of months of housing supply. Most real estate professionals consider the market to be in balance at approximately 6 months. Calhoun County had 8.3 months of housing supply in February, a decrease of 11.2 percent from the 9.3 months of supply during the same month last year. Despite the improvement, this indicates that buyers in the area still have slightly elevated bargaining power over sellers.

Pricing: The Calhoun County median sales price in February was $131,100, an increase of 3.2 percent from February 2017’s median sales price of $127,000. February’s median price was 11.6 percent above the five-year monthly average of $103,760. Pricing can fluctuate from month to month as the sample size of data (closed transactions) is subject to seasonal buying patterns. ACRE recommends consulting with a local real estate professional to discuss prices, as they will vary from neighborhood to neighborhood.

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 Calhoun County’s February Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply. 

The Calhoun County Residential Monthly Report is developed in conjunction with the Calhoun County Area Board of Realtors to better serve Anniston-area consumers.