Sales: According to the Multiple Listing Service of the Shoals Area Association of Realtors, Shoals-area sales totaled 165 units during September, up 13 percent from 146 sales in the same month a year earlier. Results were 18.7 percent above the five-year September average of 139 sales. Two more resources to review: Quarterly Report and Annual Report.
For all Shoals-area housing data, click here.
Inventory: Homes listed for sale in the Shoals area during September totaled 889 units, a decrease of 6.8 percent from September 2017’s 954 units. The Shoals area also experienced a year-over-year decline in months of supply. September months of supply totaled 5.4 months, a decrease of 17.5 percent from September 2017’s 6.5 months of supply. September’s months of supply increased 27 percent from August’s 4.2 months of supply.
Pricing: The Shoals-area median sales price in September was $149,500, an increase of 12.9 percent from one year ago and a decrease of 2.3 percent from the prior month. This direction is consistent with historical data (2013-17) indicating that the September median sales price on average decreases from August 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 September spent an average of 73 days on the market (DOM), down 7.6 percent from September 2017 and down 8.8 percent from August 2018.
Forecast: September sales were 19 units, or 13 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 146 sales for the month, while actual sales were 165 units. ACRE forecast a total of 1,296 residential sales in the Shoals area year-to-date, while there were 1,528 actual sales through September.
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 Shoals Area Residential Monthly Report is developed in conjunction with the Shoals Area Association of Realtors to better serve its area consumers.