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Sales: According to the Valley Multiple Listing Service, Gadsden-area residential sales totaled 87 units during April, up 11.5 percent from April 2017, when sales totaled 78 units. 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: April sales were five units or 6.1 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’S 2018 sales forecast through April projected 295 closed transactions, while the actual sales were 301 units.
Supply: Gadsden-area housing inventory totaled 478 units. The April supply dipped 2.4 percent from March. Historical data indicate April inventory on average (2013-17) decreases from March by 0.2 percent.
The inventory-to-sales ratio in April was 5.5 months of housing supply. At the April sales pace, it would take 5.5 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be about 6 months. The encouraging news is that the months-of-supply figure has dropped 63.1 percent from the April peak of 14.9 months of supply, reached in 2011.
Demand: April residential sales were up 17.6 percent from March. Historical data indicate that April sales on average (2013-17) increase from March by 3.4 percent.
Pricing: The Gadsden-area median sales price in April was $116,000, an 8.4 percent increase from April 2017 ($107,000). The median sales price decreased 0.9 percent compared to the prior month. This direction is inconsistent with historical data (2013-17) indicating that the April median sales price typically increases from March by 6.6 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: Statewide, residential real estate sales continued to show growth during the first quarter of 2018 as they grew 2.4 percent from the first quarter of 2017. Low inventory levels, however, played a large role in driving prices upward. During the first quarter of the year, the statewide median sales price increased 7.1 percent from one year ago. Although good news for sellers, this price growth, combined with rising interest rates, could lead to affordability issues for buyers in today’s markets.
Click here to generate more graphs from the Gadsden April Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.