Sales: According to the ValleyMLS.com, Gadsden-area home sales totaled 61 units during September, down 27.4 percent from 84 sales in the same month a year earlier. Similarly, September sales were down 31.5 percent compared to 89 sales in August. Results were 14.8 percent below the five-year September average of 72 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 September totaled 511 units, an increase of 3.4 percent from September 2017’s 494 units, and an increase of 2 percent from August 2018’s 501 units. September months of supply totaled 8.4 months, a 42.8 percent increase from September 2017’s 5.9 months of supply. September’s months of supply also increased from August’s 5.6 months of supply.
Pricing: The Gadsden median sales price in September was $114,900, an increase of 2.6 percent from one year ago and a decrease of 8.1 percent from the prior month. Historical data (2013-17) indicate that the September median sales price on average increases from August by 9.1 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 92 days on the market (DOM), an increase of 13.6 percent from 81 days in September 2017.
Forecast: September sales were 20 units, or 24.7 percent, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 81 sales for the month, while actual sales were 61 units. ACRE forecast 729 residential sales in the Gadsden area year-to-date, while there were 719 actual sales through September.
ACRE’s statewide perspective: While nationwide sales declined during September, residential sales in Alabama continued to grow during the early fall of 2018. Total residential sales in Alabama increased 8.5 percent year-over-year from 4,678 to 5,074 closed transactions. Year-to-date through September, statewide residential sales are up 6.8 percent from 44,272 one year ago to 47,283 currently. Home price appreciation in the state grew but at a slower pace than in previous months. The median sales price in September increased 0.6 percent from $161,480 to $162,482 while the year-to-date median sales price is up 4.4 percent from 2017. Although nationwide inventory levels are starting to stabilize, Alabama’s residential inventory decreased 8.9 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices throughout 2018. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during September spent an average of 90 days on the market, an improvement of 18 days from 2017.
NAR’s national perspective: During September, nationwide sales volume for existing homes decreased 9.1 percent year-over-year from 462,000 to 420,000 closed transactions. According to Lawrence Yun, chief economist for the National Association of Realtors, rising interest rates played a significant role in September sales declines in markets across the nation. “This is the lowest existing home sales level since November 2015,” he said. “A decade’s high mortgage rates are preventing consumers from making quick decisions on home purchases. All the while, affordable home listings remain low, continuing to spur underperforming sales activity across the country.”
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.