Sales: According to the Wiregrass Board of Realtors, February residential sales increased 21.9% year-over-year from 96 to 117 closed transactions. Following seasonal trends, sales increased 41% from January. Sales are now up 7.5% year-to-date. Two more resources to review: Quarterly Report and Annual Report.

For all of Wiregrass’s housing data, click here.

Inventory: Total homes listed for sale in February declined 45.5% year-over-year from 200 to 109 listings. At the current sales pace, all the active inventory on the market would sell in 0.9 months, down from 1.3 months in January and down from 2.1 months in February 2021.

Pricing: The area’s median sales price in February was $200,000, a 22.8% increase from one year ago and unchanged from January. 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.

Homes sold in February averaged 59 days on the market, selling 19 days faster than in February 2021.

Forecast: February sales were 13 units, or 12.2%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 104 residential sales for the month, and actual sales were 117 units. ACRE forecast a total of 203 sales in the area year-to-date, while there were 200 actual sales through February, a difference of 1.7%.

NAR commentary: According to the National Association of Realtors (NAR), existing home sales declined in February, falling 7.2% from January (seasonally adjusted annual rate). All four regions of the country reported month-over-month declines. Home sales also declined from one year ago, dropping 2.4% year-over-year. The median sales price for all housing types was $357,300, rising 15% year-over-year and marking 120 consecutive months of year-over-year gains. Rising home prices are largely a result of low housing inventory amid sustained demand. Existing home inventory totaled 870,000 listings at the end of February, up 2.4% from January and down 15.5% from 1.03 million listings one year ago. February’s 1.7 months of supply increased from 1.6 during the prior month but decreased from 2 months one year ago.

Lawrence Yun, chief economist for NAR, said, “Housing affordability continues to be a major challenge, as buyers are getting a double whammy: rising mortgage rates and sustained price increases. Some who had previously qualified at a 3% mortgage rate are no longer able to buy at the 4% rate.”

Yun also said he expects sales to slow down slightly because of higher mortgage rates and rising prices. “The sharp jump in mortgage rates and increasing inflation is taking a heavy toll on consumers’ savings. However, I expect the pace of price appreciation to slow as demand cools and as supply improves somewhat due to more home construction.”

ACRE commentary: Home sales in Alabama grew slightly in February, rising 2.9% from one year ago. Sixteen of the 24 markets reporting sales data to ACRE reported year-over-year sales gains.

The statewide median sales price gained 18.3% Y/Y in February as the ongoing imbalance between supply and demand continued. Inventory declined to 7,403 listings, a record low and a decrease of 25.6% from one year ago. Unsold inventory is at 1.4 months of supply, down from 1.5 in January and 1.9 months in February 2021.

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 area consumers.

Editor’s note: All information in this article reflects data provided to the Alabama Center for Real Estate for Feb. 1-28. Thus, the performance represented is historical and should not be used as an indicator of future results.