Shoals-area May home sales up 7.3% from last year

Shoals-area May home sales up 7.3% from last year
Total May sales for the area were 31.8% above the five-year May average. (iStock)

Sales: According to the Multiple Listing Service of the Shoals Area Association of Realtors, Shoals-area home sales totaled 207 units during May, up 7.3% from 193 sales in the same month a year earlier. Results were 31.8% above the five-year May average of 157 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 May totaled 845 units, a decrease of 5.9% from May 2018’s 898 units. The Shoals area also experienced a year-over-year decline in months of supply. May months of supply totaled 4.1 months, a decrease of 12.3% from May 2018’s 4.7 months. May months of supply decreased 6.7% from April’s 4.4 months of supply.

Pricing: The Shoals-area median sales price in May was $128,000, a decrease of 6.9% from one year ago and a 3.4% decrease from the prior month. This direction is inconsistent with historical data (2014-18) indicating that the May median sales price on average increases from April by 1.4%. 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 May spent an average of 79 days on the market (DOM), up 8.2% from May 2018 and up 29.5% from April 2019.

Forecast: May sales were 33 units, or 19 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 174 sales for the month, while actual sales were 207 units. ACRE forecast a total of 726 residential sales in the Shoals area year-to-date, while there were 797 actual 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 Shoals Area Residential Monthly Report is developed in conjunction with the Shoals Area Association of Realtors to better serve its area consumers.

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