Wiregrass median home sales price increases in July from one year ago

Wiregrass median home sales price increases in July from one year ago
The Wiregrass-area median home sales price in July was $149,000. (iStock)

Sales: According to the Multiple Listing Service of the Wiregrass Board of Realtors, Wiregrass-area home sales totaled 103 units during July, down 2.8% from 106 sales in the same month a year earlier. July sales decreased 8% compared to 112 sales in June. Results were 15.5% above the five-year July average of 89 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 July averaged 498 units, a decrease of 31.6% from July 2018’s 728 units and a decrease of 10.8% from June 2019’s 558 units. July months of supply totaled 4.8 months, a decrease of 29.6% from 6.9 months in July 2018. July months of supply decreased 3% from June’s 5 months of supply.

Pricing: The Wiregrass-area median sales price in July was $149,000, an increase of 1% from one year ago and an increase of 1.4% 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 July spent an average of 92 days on the market (DOM), an increase of 10.8% from 83 days in July 2018 and a decrease of 6.1% from 98 days in June 2019.

Forecast: July sales were identical to the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE forecast 103 sales for the month, and actual sales were 103 units. ACRE forecast o total of 636 residential sales in the Wiregrass area year-to-date, while there were 680 actual sales through July.

ACRE’s statewide perspective: After a slight decline in June, statewide residential sales rebounded in July, increasing 10.2% from 5,722 closed transactions in July 2018 to 6,307 in July 2019. Year-to-date, sales are up 3.1% from 2018, a record year for residential sales. Home price appreciation in the state continued to climb as the median sales price in July increased 4.6% year-over-year from $169,178 to $176,926. The statewide median sales price is up 4.2% year-to-date. While nationwide inventory levels (active listings) decreased 1.6% year-over-year, Alabama’s residential listings continue to tighten, decreasing 9.9% 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 surprising to see homes selling at a slightly slower pace than one year ago. Homes selling in Alabama during July spent an average of 89 days on the market, an increase of three days from July 2018.

NAR’s national perspective: After a 7.4% drop in June, existing home sales strengthened in July. Nationwide residential sales increased 3.3% from approximately 523,000 closed transactions one year ago to 540,000 currently. The nationwide median existing-home price increased 4.3% in July, marking 89 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “Falling mortgage rates are improving housing affordability and nudging buyers into the market.” However, he added that the supply of affordable housing is low across the nation. “The shortage of lower-priced homes has markedly pushed up home prices.”

 

Click here to view the entire monthly report.

The Wiregrass Residential Monthly Report is developed in conjunction with the Wiregrass Board of Realtors to better serve its area consumers.

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