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Sales: According to the Valley Multiple Listing Service, Gadsden-area residential sales totaled 88 units during May, up 20.5 percent from May 2017, when sales totaled 73 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: May sales were four units or 4.4 percent below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’S 2018 sales forecast through May projected 387 closed transactions, while the actual sales were 389 units.
Supply: Gadsden-area housing inventory totaled 464 units. The May supply dipped 2.9 percent from April. Historical data indicate May inventory on average (2013-17) increases from April by 1.6 percent. The inventory-to-sales ratio in May was 5.3 months of housing supply. At the May sales pace, it would take 5.3 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be about 6 months. The months-of-supply figure has dropped 63.9 percent from the May peak of 14.6 months of supply, reached in 2009.
Demand: May residential sales were up 1.1 percent from April. Historical data indicate that May sales on average (2013-17) increase from April by 10 percent.
Pricing: The Gadsden-area median sales price in May was $134,980, a 22.8 percent increase from May 2017 ($109,900). The median sales price increased 16.4 percent compared to the prior month. This direction is consistent with historical data (2013-17) indicating that the May median sales price typically increases from April by 7.6 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: 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 Gadsden May Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.