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Sales: According to the North Alabama Multiple Listing Service, Athens/Limestone County residential sales totaled 182 units during May, an increase of 10.3 percent or 17 units above the same month in 2017. Home sales during May 2017 totaled 165 units. Two more resources to review: Quarterly Report and Annual Report.
For all Athens/Limestone County area housing data, click here.
Forecast: May sales matched exactly the Alabama Center for Real Estate’s monthly forecast. ACRE’s 2018 sales forecast through May projected 725 closed transactions, while the actual sales were 712 units.
Supply: Athens/Limestone County housing inventory totaled 485 units, a decrease of 29.7 percent from May 2017. New-home inventory is up by 22 units year-over-year, while existing homes dipped by 231 units. May inventory was .4 percent above the prior month. This direction is consistent with historical data indicating that May inventory on average (2013-17) increases from April by 4 percent.
The inventory-to-sales ratio in May was 2.7 months of housing supply. At the May sales pace, it would take 2.7 months to absorb the current inventory for sale. This is a decrease of 36.3 percent from 4.2 months of supply in May 2017. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months.
Demand: May residential sales were 20.5 percent above the prior month. This direction is consistent with historical data associated with May sales, which indicate a typical increase of 8 percent from April.
Pricing: The Athens/Limestone County area median sales price in May was $192,357, a decrease of 1.8 percent from the previous May and a 5.7 percent increase from April. This direction is consistent with historical data (2013-17) reflecting that the May median sales price on average increases from April by 8.8 percent. 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: In both Alabama and the United States, the spring home-buying season has been affected greatly by very low inventory levels. April residential listings decreased 10 percent in the state and decreased 6 percent nationwide from one year ago. Residential sales in Alabama, however, increased 16 percent from one year ago, which is impressive considering the 10 percent drop in inventory. Home price appreciation cooled off somewhat as the statewide median sales price increased 2 percent from one year ago, while it increased 7 percent during the first quarter of the year. Going forward, home sales prices are expected to continue their upward climb during the summer as inventory levels are likely to repeat the declines that were seen during the spring.
Click here to generate more graphs from the Athens/Limestone May 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.