Sales: According to the Multiple Listing Service of the Wiregrass Board of Realtors, Wiregrass-area home sales totaled 128 units during May, up 15.3% from 111 sales in the same month a year earlier. May sales increased 25.5% compared to 102 sales in April. Results were 41% above the five-year May average of 91 sales. Other resources to review are the Quarterly Report and Annual Report.
For all Wiregrass-area housing data, click here.
Inventory: Homes listed for sale in the Wiregrass area during May averaged 549 units, a decrease of 34.6% from May 2018’s 840 units but an increase of 0.7% from April 2019’s 545 units. May months of supply totaled 4.3 months, a decrease of 43.3% from 7.6 months in May 2018. May’s months of supply decreased 19.7% from April’s 5.3 months of supply.
Pricing: The Wiregrass-area median sales price in May was $146,000, a decrease of 0.7% from one year ago but an increase of 2.6% from the prior month. 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 105 days on the market (DOM), an increase of 12.9% from 93 days in May 2018 and an increase of 2.9% from 102 days in April.
Forecast: May sales were 24 units, or 23.1%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE forecast 104 sales for the month, while actual sales were 128 units. ACRE forecast a total of 426 residential sales in the Wiregrass area year-to-date, while there were 465 actual sales through May.
ACRE’s statewide perspective: Statewide residential sales increased slightly in May, extending the streak to five consecutive months of year-over-year sales gains. Statewide residential sales increased 1.4% from 6,306 closed transactions in May 2018 to 6,392 in May 2019. Year-to-date, sales are up 3.2% from 2018. Home price appreciation in the state continued to climb as the median sales price in May increased 4.3% year-over-year from $165,688 to $172,864. The statewide median sales price is also up 3.4% year-to-date. Although nationwide inventory levels are trending upward, Alabama’s residential listings decreased 11.6% 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 May spent an average of 88 days on the market, an improvement of 12 days from May 2018.
NAR’s national perspective: Existing home sales rebounded in May, posting their first year-over-year gain since August 2018. Nationwide sales increased 0.9% from approximately 535,000 closed transactions one year ago to 540,000 currently. The nationwide median existing-home price increased 4.8% in May, marking 87 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “The purchasing power to buy a home has been bolstered by falling mortgage rates, and buyers are responding.”
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The Wiregrass Residential Monthly Report is developed in conjunction with the Wiregrass Board of Realtors to better serve its area consumers.