Sales: According to ValleyMLS.com, Gadsden-area home sales totaled 46 units during January, down one unit from 47 sales in the same month a year earlier. December sales were down 28.1 percent compared to 64 sales in December. Results were 17 percent below the five-year January average of 55 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 January totaled 431 units, a decrease of 2.9 percent from January 2018’s 444 units, and a decrease of three units from December 2018’s 434 units. December months of supply totaled 9.4 months, equal to January 2018’s months of supply. January’s months of supply increased 38.2 percent from December 2018’s 6.8 months of supply.
Pricing: The Gadsden median sales price in January was $139,000, an increase of 10.4 percent from one year ago and an increase of 26.4 percent from the prior month. This direction is inconsistent with historical data (2014-18) indicating that the January median sales price on average decreases from December by 9.8 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 January spent an average of 126 days on the market (DOM), an increase of 17.8 percent from 107 days in January 2018 and an increase of 31.3 percent from 96 days in December.
Forecast: January sales were 14 units, or 23.3 percent, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 60 sales for the month, while actual sales were 46 units. ACRE forecast 929 residential sales in the Gadsden area during 2019, while there were 898 sales in 2018.
ACRE’s statewide perspective: After a strong 2018, statewide residential sales in January increased 1.1 percent year-over-year from 3,320 to 3,358 closed transactions. Home price appreciation in the state continued to climb as the median sales price in January increased 5.5 percent year-over-year from $143,152 to $151,015. Although nationwide inventory levels are trending upward, Alabama’s residential listings decreased 7.4 percent from one year ago. Low inventory levels were a significant 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 January spent an average of 106 days on the market, an improvement of 10 days from 2018.
NAR’s national perspective: During January, total existing-home sales nationwide declined 9 percent from approximately 313,000 closed transactions one year ago to 285,000 currently. Lawrence Yun, chief economist for the National Association of Realtors, said, “Existing home sales in January were weak compared to historical norms; however, they are likely to have reached a cyclical low. Moderating home prices combined with gains in household income will boost housing affordability, bringing more buyers to the market in the coming months.”
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.