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, March home sales in Marshall County totaled 75 units, down 12.8 percent from one year ago. Of the 75 total sales, 71 units were existing single-family homes and 4 units were newly constructed homes. Two more resources to review: Quarterly Report and the Annual Report.

Click here to check out all Marshall County housing data.

Forecast: March sales were one unit or 1.3 percent below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 76 sales for the month, while there were 75 actual sales. Year-to-date there are 183 residential sales in Marshall County, down only one unit from ACRE’s forecast of 184 units through March.  

Supply: Marshall County housing inventory totaled 438 listings in March, a decrease of 14.1 percent from one year ago. Inventory in the area increased by 3.1 percent, or 13 units, from the prior month. Historical data indicate that March inventory on average (2013-2017) increases 1.7 percent from February.

Demand: March home sales in Marshall County increased 41.5 percent from the previous month’s total of 53 closed transactions. This month-over-month change is consistent with historical data trends indicating that March residential sales on average (2013-2017) increase 46.8 percent from February. Homes selling in the area during March averaged 148 days on the market, an increase of 32.1 percent from one year ago. The five-year days-on-market average for Marshall County during March is 123 days.

Seeking balance: The inventory for sale divided by the current monthly sales volume equals the number of months of housing supply. The market is considered to be in balance at approximately 6 months of supply. Marshall County had 5.8 months of housing supply during March, down from 5.9 months during the same month last year. Restated, at the March sales pace, it would take 5.8 months to absorb the current inventory for sale.

Pricing: The Marshall County median sales price in March was $124,900, an increase of 6.3 percent from one year ago. The March median sales price was 4.1 percent above the previous month’s median sales price. This month-over-month median price increase is consistent with historical data trends indicating that the March median sales price on average (2013-17) increases 7.7 percent from February. Pricing can fluctuate from month to month as the sample size of data is subject to seasonal buying patterns. ACRE recommends contacting a local real estate professional for additional market pricing information.

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 Marshall County March Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply. 

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