Shoals-area home sales dip in March after strong February

Shoals-area home sales dip in March after strong February
The Shoals-area median home sales price in March was $133,300. (iStock)

Sales: According to the Multiple Listing Service of the Shoals Area Association of Realtors, Shoals-area home sales totaled 142 units during March, down 27.2 percent from 195 sales in the same month a year earlier. Sales were also down 7.2 percent from February’s 153 sales. Results were 5.3 percent below the five-year March average of 150 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 March totaled 807 units, a decrease of 3 percent from March 2018’s 832 units and a decrease of 1.9 percent from February 2019’s 823 units. March months of supply totaled 5.7 months, an increase of 33.2 percent from March 2018’s 4.3 months. March’s months of supply increased 5.7 percent from February’s 5.4 months of supply.

Pricing: The Shoals-area median sales price in March was $133,300, a decrease of 1.3 percent from one year ago and a decrease of 4.8 percent from the prior month. This direction is consistent with historical data (2014-18) indicating that the March median sales price on average decreases from February by 0.6 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 March spent an average of 101 days on the market (DOM), up 16.7 percent from March 2018 and up 7.4 percent from February 2019.

Forecast: March sales were 12 units, or 16 percent, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 154 sales for the month, while actual sales were 142 units. ACRE forecast a total of 398 residential sales in the Shoals area year-to-date, while there were 403 actual sales through March.

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 Shoals Area Residential Monthly Report is developed in conjunction with the Shoals Area Association of Realtors to better serve its area consumers.

Related Stories