Sales: According to the Multiple Listing Service of the Shoals Area Association of Realtors, Shoals-area sales totaled 145 units during October, down 2.7 percent from 149 sales in the same month a year earlier. Results were 11 percent above the five-year October average of 131 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 October totaled 896 units, a decrease of 6.8 percent from October 2017’s 961 units. The Shoals area also experienced a year-over-year decline in months of supply. October months of supply totaled 6.2 months, a decrease of 3.9 percent from October 2017’s 6.4 months of supply. October’s months of supply increased 15.1 percent from September’s 5.4 months of supply.
Pricing: The Shoals-area median sales price in October was $129,000, an increase of 1.6 percent from one year ago and a decrease of 13.7 percent from the prior month. This direction is consistent with historical data (2013-17) indicating that the October median sales price on average decreases from September by 1.1 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 October spent an average of 75 days on the market (DOM), up 2.7 percent from both October 2017 and September 2018.
Forecast: October sales were four units, or 2.8 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 141 sales for the month, while actual sales were 145 units. ACRE forecast a total of 1,437 residential sales in the Shoals area year-to-date, while there were 1,673 actual sales through October.
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 Shoals Area Residential Monthly Report is developed in conjunction with the Shoals Area Association of Realtors to better serve its area consumers.