Sales: According to the ValleyMLS.com, Morgan County residential sales totaled 183 units during August, up 37.6 percent from 133 sales in the same month a year earlier. August sales increased from 177 sales in July. Results were 41.9 percent above the five-year August average of 129 sales. Two more resources to review: Quarterly Report and the Annual Report.
For all Morgan County home sales data, click here.
Inventory: Homes listed for sale in Morgan County in August totaled 470 units, a decrease of 28.8 percent from August 2017’s 660 units, and a decrease of 5.1 percent from July 2018’s 495 units. Morgan County also experienced a decline in months of supply. The August months of supply totaled 2.6 months, a decrease of 48.2 percent from August 2017’s 5 months of supply. August’s months of supply also decreased 8.2 percent from July’s 2.8 months of supply.
Pricing: The Morgan County median sales price in August was $160,000, an increase of 25 percent from one year ago and an increase of 11.9 percent from the prior month. This direction is inconsistent with historical data (2013-17) indicating that the August median sales price on average decreases from July by .3 percent. The differing sample size (number of residential sales of comparative months) 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. The average number of days on the market (DOM) for the homes sold during August was 67 days, a decrease of 23.9 percent from 88 days in August 2017, and an increase of 19.6 percent from 56 days in July.
Forecast: July sales were 43 units, or 30.7 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 140 sales for the month, while actual sales were 183 units. ACRE forecast a total of 985 residential sales in Morgan County year-to-date, while there were 1,158 actual sales through August.
ACRE’s statewide perspective: Residential sales in Alabama continued to grow during the late summer of 2018. Total residential sales during July increased 7.9 percent year-over-year from 5,312 to 5,729 closed transactions. Year-to-date through July, statewide residential sales are up 7.1 percent from 33,929 one year ago to 36,354 currently. Home price appreciation in the state also continues its upward trajectory. The median sales price in July increased 5.9 percent from $160,279 to $169,727, while the year-to-date median sales price is up 5.3 percent from 2017. Mirroring national trends, statewide inventory decreased 12.1 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices during July. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during July spent an average of 86 days on the market, an improvement of 25 days from 2017.
NAR’s national perspective: During July, nationwide sales volume for existing homes increased 1.8 percent year-over-year from 513,000 to 522,000 closed transactions. According to Lawrence Yun, chief economist for the National Association of Realtors, “Continuous solid gains in home prices have now steadily reduced demand. Led by a notable decrease in closings in the Northeast, existing home sales trailed off again last month, sliding to their slowest pace since February 2016 at 5.21 million (seasonally adjusted annual rate). Too many would-be buyers are either being priced out, or are deciding to postpone their search until more homes in their price range come onto the market.”
Click here to view the entire monthly report.
The Morgan County Residential Monthly Report is developed in conjunction with the Morgan County Association of Realtors to better serve area consumers.