Cullman-area median home sales price up 19% from one year ago

Cullman-area median home sales price up 19% from one year ago
Total May home sales in Cullman were 28% above the five-year May average. (Dave_warren80, Wikipedia)

Sales: According to the Cullman Association of Realtors Multiple Listing Service, Cullman County residential sales totaled 95 units during May, up 25% from 76 sales in the same month a year earlier. May sales were down 5.9% from 101 sales in April. Results were 28% above the five-year May average of 74 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 May totaled 481 units, a decrease of 5.1% from May 2018’s 507 units, and a decrease of 4% from April 2019’s 501 units. May months of supply totaled 5.1 months, a decrease of 24.1% from the same month a year earlier and an increase of 2.1% from April’s 5 months of supply.

Pricing: The Cullman County median sales price in May was $166,000, an increase of 19% from one year ago and an increase of 10.7% from the prior month. This direction is consistent with historical data (2014-18) indicating that the May median sales price on average increases from April by 1.6%. 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 May was 107 days, a decrease of 5.3% from 113 days in May 2018 and a decrease of 10.8% from 120 days in April.

Forecast: May sales were 14 units, or 17.3%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 81 sales for the month, while actual sales were 95 units. ACRE forecast a total of 352 residential sales in Cullman County year-to-date, while there were 373 sales through May.

ACRE’s statewide perspective: While nationwide residential sales dropped 1% in April, demand for housing in Alabama remained strong. Statewide residential sales increased 4.4% from 5,574 closed transactions in April 2018 to 5,820 in April 2019. Year-to-date, sales increased 3.8% from 2018. Home price appreciation in the state continued to climb as the median sales price in April increased 3.2% year-over-year from $155,250 to $160,283. The statewide median sales price is also up 3.2% year-to-date. Although nationwide inventory levels are trending upward, Alabama’s residential listings decreased 10.7% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and in the spring buying season 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 April spent an average of 93 days on the market, an improvement of three days from April 2018.

NAR’s national perspective: During April, total existing-home sales nationwide declined 1.1% from approximately 460,000 closed transactions one year ago to 455,000 currently. The nationwide median existing-home price increased 3.6% in April, marking 86 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “First, we are seeing historically low mortgage rates combined with a pent-up demand to buy, so buyers will look to take advantage of these conditions. Also, job creation is improving, causing wage growth to align with home price growth, which helps affordability and will help spur more home sales.”

 

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.

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