Sales: According to ValleyMLS.com, Gadsden-area home sales totaled 56 units during February, down 12.5 percent from 64 sales in the same month a year earlier. February sales were up 21.7 percent compared to 46 sales in January. Results were 5.4 percent below the five-year January average of 59 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 February totaled 407 units, a decrease of 9.2 percent from February 2018’s 448 units, and a decrease of 5.6 percent from January 2019’s 431 units. February months of supply totaled 7.3 months, an increase of 4.3 percent from February 2018’s 7 months of supply. February’s months of supply decreased 22.3 percent from January 2019’s 9.4 months of supply.

Pricing: The Gadsden median sales price in February was $126,000, an increase of 4.8 percent from one year ago and a decrease of 9.4 percent from the prior month. This direction is consistent with historical data (2014-18) indicating that the February median sales price on average decreases from January by 15.9 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 118 days on the market (DOM), an increase of 16.8 percent from 101 days in February 2018 and a decrease of 6.3 percent from 126 days in January.

Forecast: February sales were 14 units, or 20 percent, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 70 sales for the month, while actual sales were 56 units. ACRE forecast 130 residential sales in the Gadsden area year-to-date, while there were 102 sales through February.

ACRE’s statewide perspective: Statewide residential sales in February increased 10.9 percent year-over-year from 3,807 to 4,222 closed transactions. Year-to-date sales increased 6.4 percent from 2018. Home price appreciation in the state continued to climb, but at a slower pace, as the median sales price in February increased 3 percent year-over-year from $152,771 to $157,319. The statewide median sales price is also up 4.2 percent year-to-date. Although nationwide inventory levels are trending upward, Alabama’s residential listings decreased 8.9 percent from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and in the early months of 2019. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during February spent an average of 99 days on the market, an improvement of 27 days from February 2018.

NAR’s national perspective: During February, total existing-home sales nationwide declined 2.2 percent from approximately 319,000 closed transactions one year ago to 312,000 currently. The nationwide median existing-home price increased 3.6 percent in February, marking 84 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “It is very welcoming to see more inventory showing up in the market. For sustained growth, significant construction of moderately priced homes is still needed. More construction will help boost local economies and more home sales will help lessen wealth inequality as more households can enjoy in housing wealth gains.”

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.