Sales: According to the Multiple Listing Service of the Shoals Area Association of Realtors, Shoals-area home sales totaled 153 units during February, up 33 percent from 115 sales in the same month a year earlier. Sales were also up 41.7 percent from January’s 108 sales. Results were 41.1 percent above the five-year January average of 108 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 February totaled 823 units, a decrease of 6.8 percent from February 2018’s 883 units. February months of supply totaled 5.4 months, a decrease of 29.9 percent from February 2018’s 7.7 months. February’s months of supply also decreased 29 percent from January’s 7.6 months of supply.
Pricing: The Shoals-area median sales price in February was $140,000, an increase of 0.4 percent from one year ago and an increase of 14 percent from the prior month. This direction is consistent with historical data (2014-18) indicating that the February median sales price on average increases from January by 4.2 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 February spent an average of 94 days on the market (DOM), up 6.8 percent from February 2018 and up 9.3 percent from January 2019.
Forecast: February sales were 28 units, or 22.4 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 125 sales for the month, while actual sales were 153 units. ACRE forecast a total of 229 residential sales in the Shoals area year-to-date, while there were 261 actual sales through February.
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 Shoals Area Residential Monthly Report is developed in conjunction with the Shoals Area Association of Realtors to better serve its area consumers.