Sales: According to the Cullman Association of Realtors Multiple Listing Service, Cullman County residential sales totaled 93 units during July, up 9.4% from 85 sales in the same month a year earlier. July sales were up 1.1% from 92 sales in June. Results were 20.2% above the five-year July average of 77 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 July totaled 462 units, a decrease of 6.3% from July 2018’s 493 units, and a decrease of 4.1% from June 2019’s 482 units. July months of supply totaled 5.2 months, a decrease of 5.2% from the same month a year earlier and a decrease of 14.3% from June’s 5.8 months of supply.
Pricing: The Cullman County median sales price in July was $155,270, a decrease of 2.9% from one year ago and a decrease of 9.3% from the prior month. This direction is inconsistent with historical data (2014-18) indicating that the July median sales price on average increases from June by 4.6%. 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 July was 125 days, an increase of 8.7% from 115 days in July 2018 and an increase of 17.9% from 106 days in June.
Forecast: July sales were six units, or 6.9%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 87 sales for the month, while actual sales were 93 units. ACRE forecast a total of 520 residential sales in Cullman County year-to-date, while there were 558 sales through July.
ACRE’s statewide perspective: Statewide residential sales decreased slightly in June, ending a five-month streak of year-over-year sales gains. This was the first such decline since December 2018 and only the fourth in the last two years. Statewide residential sales decreased 3.4% from 6,277 closed transactions in June 2018 to 6,063 in June 2019. Year-to-date, however, sales are up 1.8% from 2018, a record year for residential sales. Home price appreciation in the state continued to climb as the median sales price in June increased 7.3% year-over-year from $164,987 to $177,018. The statewide median sales price is up 4.1% year-to-date. While nationwide inventory levels (active listings) are stabilizing (equal to June 2018), Alabama’s residential listings decreased 9.7% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and in the summer 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 June spent an average of 86 days on the market, an improvement of 14 days from June 2018.
NAR’s national perspective: After a small gain in May, existing home sales weakened in June. Nationwide residential sales decreased 7.5% from approximately 570,000 closed transactions one year ago to 527,000 currently. The nationwide median existing-home price increased 4.4% in June, marking 88 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of REALTORS, said, “Home sales are running at a pace similar to 2015 levels – even with exceptionally low mortgage rates, a record number of jobs and a record high net worth in the country.” Yun said there is a housing shortage across the country and more inventory is needed, especially in the entry-level price range. “Imbalance persists for mid- to lower-priced homes with solid demand and insufficient supply, which is consequently pushing up home prices,” he said.
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.