Sales: According to the Cullman Association of Realtors Multiple Listing Service, Cullman County residential sales totaled 108 units during August, up 33.3% from 81 sales in the same month a year earlier. August sales were up 16.1% from 93 sales in July. Results were 50.8% above the five-year August average of 72 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 August totaled 446 units, a decrease of 6.9% from August 2018’s 479 units, and a decrease of 3.5% from July 2019’s 462 units. August months of supply totaled 4.1 months, a decrease of 30.2% from the same month a year earlier and a decrease of 16.9% from July’s 5 months of supply.
Pricing: The Cullman County median sales price in August was $169,950, an increase of 13.4% from one year ago and an increase of 9.5% from the prior month. This direction is inconsistent with historical data (2014-18) indicating that the August median sales price on average decreases from July by 3.5%. 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 August was 100 days, a decrease of 25.4% from 134 days in August 2018 and a decrease of 20% from 125 days in July.
Forecast: August sales were 21 units, or 24.1%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 87 sales for the month, while actual sales were 108 units. ACRE forecast a total of 607 residential sales in Cullman County year-to-date, while there were 666 sales through August.
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 Cullman County Residential Monthly Report is developed in conjunction with the Cullman Association of Realtors to better serve Cullman-area consumers.