Gadsden-area home sales increase sharply from last year

Gadsden-area home sales increase sharply from last year
The Gadsden median home sales price in September was $138,900, an increase of 21% from one year ago. (ACRE)

Sales: According to ValleyMLS.com, Gadsden-area home sales totaled 91 units during September, up 49.2% from 61 sales in the same month a year earlier. September sales were down 5.2% compared to 96 sales in August. Results were 23.6% above the five-year September average of 74 sales. Two more resources to review: Quarterly Report and Annual Report.

For all Gadsden-area housing data, click here.

Inventory: Homes listed for sale in the Gadsden area during September totaled 421 units, a decrease of 17.6% from September 2018’s 511 units and an increase of 6.6% from August 2019’s 395 units. September months of supply totaled 4.6 months, a decrease of 44.8% from September 2018’s 8.4 months of supply. September’s months of supply increased 12.4% from August 2019’s 4.1 months of supply.

Pricing: The Gadsden median sales price in September was $138,900, an increase of 20.9% from one year ago and a decrease of 10.2% from the prior month. This direction is consistent with historical data (2014-18) indicating that the September median sales price on average decreases from August by 3.4%. 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 September spent an average of 81 days on the market (DOM), a decrease of 12% from 92 days in September 2018 and a decrease of 16.5% from 97 days during the prior month.

Forecast: September sales were 11 units, or 13.8%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 80 sales for the month, while actual sales were 91 units. ACRE forecast 729 residential sales in the Gadsden area year-to-date, while there were 719 sales through September.

ACRE’s statewide perspective: Residential sales growth continued in September as total residential sales increased 8.7% year-over-year from 5,069 to 5,510 closed transactions. Year-to-date, sales are up 4.3% from 2018, a record year for residential sales. Home price appreciation in the state continued to climb as the median sales price in September increased 7% year-over-year, marking 23 consecutive months of gains. The statewide median sales price is up 4.3% year-to-date. While nationwide inventory levels (active listings) decreased 2.7% year-over-year, Alabama’s residential listings continue to tighten, decreasing 9.7% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and continued into the third quarter of 2019. With low inventory levels, it is not surprising to see homes selling at a slightly quicker pace than one year ago. Homes selling in Alabama during September spent an average of 82 days on the market, a decrease of eight days from September 2018.

NAR’s national perspective: Existing home sales rebounded in September, increasing 7.4% year-over-year from approximately 421,000 closed transactions one year ago to 452,000 currently. The nationwide median existing-home price increased 5.9% in September, marking 91 consecutive months of year-over-year gains. John Smamby, president of the National Association of Realtors, said, “For families on the sidelines thinking about buying a home, current rates are making the climate extremely favorable in markets across the country. These traditionally low rates make it that much easier to qualify for a mortgage, and they also open up various housing selections to buyers everywhere.”

Click here to view the entire monthly report.

The Gadsden Residential Monthly Report is developed in conjunction with the Etowah-Cherokee County Association of Realtors to better serve its area consumers.

 

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