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

Sales: According to the North Alabama Multiple Listing Service, Athens-area residential sales totaled 143 units during March, a decrease of 5.3 percent from one year ago, when sales totaled 151 units. Existing single-family homes accounted for 63 percent of all March residential sales, while newly constructed homes were 36 percent. Two more resources to review: Quarterly Report and Annual Report.

For all Athens-area housing data, click here.

Forecast: March sales for the Athens area were 21 units, or 12.8 percent, below the Alabama Center for Real Estate’s monthly forecast. ACRE projected 164 sales for the area during March, while the actual sales were 143 units. Year-to-date there have been 379 closed residential transactions in the area, 2.1 percent below ACRE’s forecast of 387 year-to-date sales. 

Supply: Housing inventory in the Athens area totaled 460 listings during March, a decrease of 30.2 percent from the same month in 2017. March inventory was 5.2 percent below the prior month. This trend goes against historical data indicating that March inventory on average (2013-17) increases from February by 2.4 percent. The inventory-to-sales ratio in March was 3.2 months of housing supply. Restated, at the March sales pace, it would take 3.2 months to absorb the current inventory for sale. This is a decrease of 26.3 percent from 4.4 months of supply in March 2017. The market equilibrium (balance between supply and demand) is approximately 6 months.

Demand: March residential sales in the Athens area increased 7.5 percent from the prior month. This is consistent with historical data indicating that March residential sales on average (2013-17) increase from February by 34.7 percent. Homes selling in March averaged 73 days on the market, representing a decrease of 34.8 percent from the same month in 2017. Homes in the Athens area are selling much more quickly than in previous years, as the five-year days-on-market average for March is 118 days.

Pricing: The Athens-area median sales price in March was $209,900, an increase of 13.5 percent from the previous month and an increase of 19.9 percent from one year ago. 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: Interest rates are likely to increase throughout 2018. The Federal Reserve’s Federal Open Market Committee (FOMC) met on March 21 and approved a quarter-point rate hike. As of April 5, the 10-Year Treasury stood at 2.83 percent, down slightly from 2.88 percent one month ago. Although daily yield curve rates have decreased slightly in the past month, many analysts are projecting that the 10-year Treasury will pass 3 percent in the months to come. According to Wells Fargo, the current interest rate on a 30-year fixed-rate mortgage is 4.58 percent (annual percentage rate).

As the overall economy continues to expand, it is not surprising to see growth in Alabama’s residential new construction market. February sales of newly constructed homes grew 22 percent month-over-month and 14 percent year-over-year. Statewide*, there were 507 new construction sales in February, up from 416 total sales in January and up from 445 total sales in February 2017. Year-to-date, new construction sales are up 6 percent from 2017.

February new construction sales in select Alabama markets

• Baldwin County – 100
• Birmingham Metro Area – 125
• Huntsville Metro Area – 112
• Lee County – 36
• Mobile Metro Area – 17
• Montgomery Metro Area – 35
• Tuscaloosa County – 15

New construction building permits and housing starts data are indicators of larger economic conditions. Generally speaking, the housing market is one of the first sectors to expand or contract during times of growth or decline. According to the U.S. Census Bureau, 1,225 building permits for new construction were issued in Alabama during February. Building permits increased 1.1 percent from January, when 1,212 permits were issued, and increased 10.1 percent from February 2017, when 1,113 permits were issued. ACRE projected 1,219 housing starts in Alabama during February. Housing starts decreased 2.9 percent from January (1,256) and increased 13 percent from February 2017 (1,079). Year-over-year increases in both building permits and projected housing starts are encouraging news, as they hint toward continued overall economic growth during the second quarter of 2018.

*ACRE receives new construction sales data from the following counties/areas: Baldwin County, Birmingham Metro Area, Calhoun County, Huntsville Metro Area, Lee County, Mobile Metro Area, Montgomery Metro Area, Tuscaloosa County and the Wiregrass Region. Combined, these counties/areas represent +/- 70 percent of Alabama’s total population.

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

The Athens/Limestone County Residential Monthly Report is developed in conjunction with the Athens/Limestone County Association of Realtors to better serve North Alabama consumers.