Gadsden-area median home sales price up 8% from one year ago

Gadsden-area median home sales price up 8% from one year ago
Total 2019 home sales in the Gadsden area were 4.8% above 2018 sales, and December sales increased 21.9% from the same month a year earlier. (ACRE)

Sales: According to ValleyMLS.com, Gadsden-area home sales totaled 78 units during December, up 21.9% from 64 sales in the same month a year earlier. December sales were up 16.4% compared to 67 sales in November. Results were 41.3% above the five-year December average of 55 sales. Total sales for 2019 were 4.8% above 2018 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 December totaled 356 units, a decrease of 18% from December 2018’s 434 units and a decrease of 8% from November 2019’s 387 units. December months of supply totaled 4.6 months, a decrease of 32.7% from December 2018’s 6.8 months of supply. December’s months of supply decreased 21% from November 2019’s 5.8 months of supply.

Pricing: The Gadsden-area median sales price in December was $118,700, an increase of 7.9% from one year ago and an increase of 13% from the prior month. This direction is consistent with historical data (2014-18) indicating that the December median sales price on average increases from November by 13.6%. 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 December spent an average of 90 days on the market (DOM), a decrease of 6.3% from 96 days in December 2018.

Forecast: December sales were 16 units, or 25.8%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 62 sales for the month, while actual sales were 78 units. ACRE forecast 929 residential sales in the Gadsden area during 2019, while there were 935 sales through December.

ACRE’s statewide perspective: Residential sales growth continued in November but at a slower pace, as total residential sales increased 0.8% year-over-year from 4,598 to 4,635 closed transactions. Year-to-date, sales are up 4.2% from 2018, a record year for residential sales. Home price appreciation in the state continued to climb as the median sales price in November increased 9.3% year-over-year, marking 25 consecutive months of gains. The statewide median sales price is up 5.8% year-to-date. While properties listed for sale nationwide decreased 5.7% year-over-year, Alabama’s residential listings continued to tighten, decreasing 10.5% 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 November spent an average of 92 days on the market, a decrease of one day from November 2018.

NAR’s national perspective: Existing-home sales declined slightly in November, decreasing 0.5% year-over-year from approximately 406,000 closed transactions one year ago to 402,000 currently. The nationwide median existing-home price increased 5.4% in November, marking 93 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “Sales will be choppy when inventory levels are low, but the economy is otherwise performing well, with more than 2 million job gains in the past year.” Properties listed for sale nationwide declined 5.7% in November from approximately 1.74 million listings one year ago to 1.64 million currently.

 

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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