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Sales: According to the North Alabama Multiple Listing Service, Morgan County (Decatur) residential sales totaled 163 units during May, up 13.2 percent from the same month in 2017. Home sales in Morgan County during May 2017 totaled 144 units. Another resource to review is the Annual Report.
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Forecast: May sales were 15 units or 10.1 percent above the Alabama Center for Real Estate’s monthly forecast. ACRE’s 2018 sales forecast through May projected 565 closed transactions, while the actual sales were 635 units.
Supply: Morgan County area housing inventory totaled 502 units, a decrease of 25 percent from May 2017. Inventory was 2.3 percent below the prior month. Historical data indicate May inventory on average (2013-17) decreases from April by .5 percent. The inventory-to-sales ratio during May was 3.1 months of housing supply. At the May sales pace, it would take 3.1 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months. In May 2017, the supply stood at 4.6 months. The months-of-supply figure has declined 75.6 percent from the May peak reached in 2009 (12.6 months).
Pricing: The Morgan County median sales price during May was $150,000, which is 24 percent above May 2017’s $121,000 and 6 percent above the April median sales price. Differing sample size from month to month can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood.
Demand: May residential sales improved 13.2 percent from the prior month. Historical data indicate May sales on average (2013-17) increase from April by 10.6 percent. The average number of days on the market until a listing sold was 101 days, down 15.1 percent from the previous May.
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 Morgan County May Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.