Wiregrass-area October home sales up 6.8% from last year

Wiregrass-area October home sales up 6.8% from last year
The homes selling in Alabama's Wiregrass region during October moved off the market 19% faster than the ones that sold during the same month last year. (Jay Parker/Powergrams)

Sales: According to the Multiple Listing Service of the Wiregrass Board of Realtors, Wiregrass-area home sales totaled 94 units during October, up 6.8% from 88 sales in the same month a year earlier. October sales decreased 5.1% compared to 99 sales in September. Results were 23.4% above the five-year October average of 76 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 October averaged 480 units, a decrease of 23% from October 2018’s 623 units and a decrease of 6.6% from September 2019’s 514 units. October months of supply totaled 5.1 months, a decrease of 27.9% from 7.1 months in October 2018. October months of supply decreased 1.6% from September’s 5.2 months of supply.

Pricing: The Wiregrass-area median sales price in October was $130,500, a decrease of 5.4% from one year ago and a decrease of 26.4% 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 October spent an average of 99 days on the market (DOM), a decrease of 18.9% from 122 days in October 2018 and an increase of 16.5% from 85 days in September 2019.

Forecast: October sales were eight units or 9.3% above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE forecast 86 sales for the month, and actual sales were 94 units. ACRE forecast a total of 907 residential sales in the Wiregrass area year-to-date, while there were 998 actual sales through October.

ACRE’s statewide perspective: Residential sales growth continued in October as total residential sales increased 6.7% year-over-year from 4,883 to 5,211 closed transactions. Year-to-date, sales are up 4.5% from 2018, a record year for residential sales. Home price appreciation in the state continued to climb as the median sales price in October increased 10.1% year-over-year, marking 24 consecutive months of gains. The statewide median sales price is up 5.5% year-to-date. While properties listed for sale nationwide decreased 4.3% year-over-year, Alabama’s residential listings continued to tighten, decreasing 10.7% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and continued into the fourth 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 October spent an average of 88 days on the market, a decrease of eight days from October 2018.

NAR’s national perspective: Existing home sales rebounded in October, increasing 3.8% year-over-year from approximately 446,000 closed transactions one year ago to 463,000 currently. The nationwide median existing-home price increased 6.2% in October, marking 92 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “Historically-low interest rates, continuing job expansion and higher weekly earnings are undoubtedly contributing to these higher numbers. We will likely continue to see sales climb as long as potential buyers are presented with an adequate supply of inventory.”

 

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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