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Sales: According to the Multiple Listing Service of the Shoals Area Association of Realtors, Shoals area residential sales totaled 193 units during May, an increase of 14.2 percent or 24 units from the same period last year. Another resource to review is the Annual Report.
For all Shoals-area real estate data, click here.
Forecast: May sales landed 34 units above the Alabama Center for Real Estate’s monthly forecast. ACRE’s year-to-date sales forecast through May projected 663 closed transactions, and actual closed sales were at 789, a 19 percent positive difference.
Supply: Shoals area housing inventory totaled 898 units, a decrease of 8.6 percent from May 2017. Inventory increased 0.3 percent from the prior month. Historical data suggest housing inventory increases generally by 3.1 percent from April to May. Inventory has favorably declined 26.8 percent from the May peak of 1,226 units in 2010.
The inventory-to-sales ratio in May was 4.7 months of housing supply, a decrease of 19.9 percent from last May. Restated, at the May sales pace, it would take 4.7 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months during May.
Demand: May sales decreased 6.6 percent from the prior month. Historical data from 2013-17 indicate typical sales increase 5 percent from April to May. Homes selling in the area during May averaged 73 days on the market, selling nine days faster than one year ago. The five-year days-on-market average is 119 days for the month of May.
Pricing: The Shoals area median sales price in May was $137,500, a decrease from $147,000 in May 2017. The median sales price also decreased 3.8 percent from the prior month. This direction contrasts with historical data indicating that the May median sales price on average (2013-17) increases by 5 percent from April. 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: 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 Shoals Area May Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.