Sales: According to the Cullman Association of Realtors Multiple Listing Service, Cullman County residential sales totaled 64 units during December, down 16.9 percent from 77 sales in the same month a year earlier. December sales were up by one unit compared to 63 sales in November. Results were 22.1 percent above the five-year December average of 52 sales. Two more resources to review: Quarterly Report and the Annual Report.
For all Cullman County home sales data, click here.
Inventory: Homes listed for sale in Cullman County in December totaled 450 units, a decrease of 10.2 percent from December 2017’s 501 units, and a decrease of 6.6 percent from November 2018’s 482 units. Cullman County experienced a year-over-year increase in months of supply in December. The December months of supply totaled 7 months, an increase of 8.1 percent from December 2017’s 6.5 months of supply. December’s months of supply decreased 8.1 percent from November’s 7.7 months of supply.
Pricing: The Cullman County median sales price in December was $133,900, a decrease of 16.3 percent from one year ago and also a 16.3 percent decrease from the prior month. This direction is consistent with historical data (2013-17) indicating that the December median sales price on average decreases from November by 7.6 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 December was 123 days, an increase of 2.5 percent from 120 days in December 2017 and a decrease of 4.7 percent from 129 days in November.
Forecast: December sales were four units, or 5.9 percent, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 68 sales for the month, while actual sales were 64 units. ACRE forecast a total of 1,011 residential sales in Cullman County during 2018, while there were 866 actual sales.
ACRE’s statewide perspective: After 10 consecutive months of gains, statewide residential sales in December decreased 1.6 percent year-over-year from 4,371 to 4,303 closed transactions. For the entire year, statewide residential sales increased 6.3 percent from 57,427 in 2017 to 61,062 in 2018. Home price appreciation in the state continued to climb as the median sales price in December increased 4.7 percent year-over-year from $151,667 to $158,772. The median sales price for all of 2018 was up 4.6 percent from 2017. Although nationwide inventory levels are trending upwards, Alabama’s residential inventory decreased 6.9 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices throughout 2018. With low inventory, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during December spent an average of 102 days on the market, an improvement of 11 days from 2017.
NAR’s national perspective: During December, total existing-home sales nationwide declined 11.7 percent from approximately 427,000 one year ago to 377,000 currently. Lawrence Yun, chief economist for the National Association of Realtors, says current housing numbers are partially due to higher interest rates during most of 2018. “The housing market is obviously very sensitive to mortgage rates. Softer sales in December reflected consumer search processes and contract signing activity in previous months when mortgage rates were higher than today. Now, with mortgage rates lower, some revival in home sales is expected going into spring.”
Click here to view the entire monthly report.
The Cullman County Residential Monthly Report is developed in conjunction with the Cullman Association of Realtors to better serve Cullman-area consumers.