Wiregrass May median home sales prices up 14 percent from last year

Wiregrass May median home sales prices up 14 percent from last year
May residential sales were up 5.7 percent from April. (iStock)

Sales: According to the Wiregrass Multiple Listing Service, there were 111 residential sales in the Wiregrass region during May, a 9.9 percent increase from one year ago. Two more resources to review: Quarterly Report and Annual Report.

For all of the Wiregrass area housing data, click here.

Forecast: May sales were nine units higher than the Alabama Center for Real Estate’s (ACRE) monthly forecast of 102 closed transactions.

Supply: Wiregrass area housing inventory totaled 840 listings in May, an increase of 8.2 percent from one year ago. Inventory in the region increased 1.3 percent from the previous month.

Demand: May residential sales were up 5.7 percent from the prior month. May sales data from 2013-17 indicate that sales on average increase from April by 32.4 percent. The average number of days on the market until a listing sold was 93 days, a 40 percent decrease from 155 days on the market one year ago. This statistic has seen much improvement since peaking in April 2008 at 186 days on the market.

Seeking balance: The inventory for sale divided by the current monthly sales volume equals the number of months of supply. Most real estate professionals consider the market to be in balance at approximately 6 months of supply. The inventory-to-sales ratio during May was 7.6 months of housing supply, down from 7.9 months of supply one month ago and down from 7.7 months of supply one year ago. In other words, at the May sales pace it would take 7.6 months to absorb the current inventory for sale.

Pricing: The Wiregrass area median sales price in May was $147,000, an increase of 14 percent from one year ago and a 10.9 percent increase from the previous month. It should be noted that the differing sample size and seasonal buying patterns can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss prices, as they will vary from neighborhood to neighborhood.

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 view or print the entire monthly report.

Click here to view more graphs from the Wiregrass Region May Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply. 

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

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