Click here to view or print the entire monthly report compliments of the ACRE Corporate Cabinet.

Sales: According to the Valley Multiple Listing Service, Gadsden-area residential sales totaled 86 units during September, up 13.2 percent from September 2015. Year-to-date sales are 17 percent or 110 units higher than the same period in 2015. Two more resources to review: Quarterly Report and Annual Report.

Click here to view all of ACRE’s Gadsden residential data.

September home sales in Gadsden rose 13 percent over the same period in 2015.

Forecast: September sales were 19 units or 28 percent below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’S year-to-date sales forecast through September projected 611 closed transactions, while the actual sales were 747 units, 22 percent higher than expected.

Supply: Gadsden-area housing inventory totaled 657 units. The September supply dipped 1.5 percent from August. This direction contrasts with historical data that indicate September inventory on average (2011-15) increases from August by 5 percent.

The inventory-to-sales ratio in September remains higher than desired at 7.6 months of housing supply. Restated, at the September sales pace, it would take 7.6 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be about 6 months during September, so continued improvement in this area would be welcome. The encouraging news is that the months of supply have dropped 50 percent from the September peak of 15.3 months of supply reached in 2010.

Demand: September residential sales were down 5.5 percent from August. Historical data indicate that September sales on average (2011-15) increase from August by 12 percent.  

Pricing: The Gadsden-area median sales price in September was $99,500, a 16 percent increase over September 2015 ($85,750). The median sales price decreased 13.5 percent compared to the prior month. This direction contrasts with historical data (2011-15) indicating that the September median sales price typically increases from August  by 31.7 percent. Pricing can fluctuate from month to month as the sample size of data (closed transactions) is subject to seasonal buying patterns. ACRE recommends contacting a local real estate professional for additional market pricing information.

Industry perspective: “The decline in the HPSI (Home Purchase Sentiment Index) over the past two months from the survey-high in July of 86.5 adds a note of caution to our moderately positive housing outlook,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Downside changes came in particular from the HPSI components ‘mortgage rate direction’ and ‘good time to buy a house.’ In addition, the starter home tight supply and rising home prices as well as the unsettled political environment are likely giving many consumers a reason to pause or question their home purchase sentiment.” For the full report, click here.

Click here to generate more graphs from the Gadsden September Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply. 

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