Sales: According to the ValleyMLS.com, Gadsden-area home sales totaled 89 units during August, down 2.2 percent from 91 sales in the same month a year earlier. However, August sales were up 15.6 percent compared to 77 sales in July. Results were 19.6 percent above the five-year August average of 74 sales. Two more resources to review: Quarterly Report and Annual Report.
For all Gadsden-area housing data, click here.
Inventory: Homes listed for sale in the Gadsden area during August totaled 501 units, a decrease of 5.1 percent from August 2017’s 513 units, and a decrease of 1.2 percent from July 2018’s 507 units. August months of supply totaled 5.6 months, a slight .1 percent decrease from August 2017’s 5.6 months of supply. August’s months of supply also decreased from July’s 6.6 months of supply.
Pricing: The Gadsden median sales price in August was $125,000, a decrease of 2.3 percent from one year ago and a decrease of 4.6 percent from the prior month. Historical data (2013-17) indicates that the August median sales price on average decreases from July by 5.5 percent. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE highly recommends consulting with a local real estate professional to discuss pricing trends, as they will vary from neighborhood to neighborhood. The homes selling in August spent an average of 113 days on the market (DOM), a decrease of 15.7 percent from 134 days in August 2017.
Forecast: August sales were three units, or 3.5 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 86 sales for the month, while actual sales were 89 units. ACRE forecast 648 residential sales in the Gadsden area year-to-date, while there were 658 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 August increased 3.5 percent year-over-year from 5,664 to 5,862 closed transactions. Year-to-date through August, statewide residential sales are up 6.6 percent from 39,594 one year ago to 42,209. Home price appreciation in the state also continues its upward trajectory. The median sales price in August increased 2.9 percent from $158,059 to $162,711, while the year-to-date median sales price is up 4.9 percent from 2017. Although nationwide inventory levels are starting to stabilize, Alabama’s residential inventory decreased 11.4 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices during August. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during August spent an average of 95 days on the market, an improvement of 22 days from 2017.
NAR’s national perspective: During August, nationwide sales volume for existing homes increased 0.7 percent year-over-year from 535,000 to 539,000 closed transactions. According to Lawrence Yun, chief economist for the National Association of Realtors, “Strong gains in the Northeast and a moderate uptick in the Midwest helped to balance out any losses in the South and West, halting months of downward momentum. With inventory stabilizing and modestly rising, buyers appear ready to step back into the market.”
Click here to view the entire monthly report.
The Gadsden Residential Monthly Report is developed in conjunction with the Etowah-Cherokee County Association of Realtors to better serve its area consumers.