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

Sales: According to the Wiregrass Multiple Listing Service, Wiregrass area residential sales totaled 57 units during October, 22 percent below the number recorded during the same period last year. Year-to-date home sales in October were 2 percent higher than the same period last year. Two more resources to review: Quarterly Report and Annual Report.

For all of the Wiregrass area housing data, click here. 

Wiregrass home sales through October are up 2 percent over the same period last year.

Forecast: October sales were three units and 24 percent below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s year-to-date sales forecast through October projected 776 closed transactions, while the actual sales were 762 units, 2 percent below the forecast sales.

Supply: Wiregrass area housing inventory totaled 776 units, a decrease of 10 percent from October 2015. Inventory was down 4 percent from the prior month. This direction contrasts with historical data that indicate October inventory on average (2011-15) increases from September by 2 percent.

The inventory-to-sales ratio during October of 13.6 months of housing supply is up 15.4 percent from the same period last year. Restated, at the October sales pace, it would take 13.6 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months during October, so this indicates the continued presence of a buyer’s market.

Demand: October residential sales were down 24 percent from the prior month. Historical data indicate October sales on average (2011-15) increase from September by 23.2 percent. The average days on market until a listing sold was 151 days, 23 percent faster than October 2015 (197 days).

Pricing: The Wiregrass area median sales price in October was $93,000, a decrease of 17 percent from October 2015 ($112,500) and a 23 percent decrease from the previous month. This direction is consistent with historical seasonal data (2011-15) that reflect the October median sales price on average decreases from September by 9.6 percent. It should be noted that the differing sample size (number of residential sales of the comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss prices, as they will vary from neighborhood to neighborhood.

Industry perspective: “Since July, more consumers, on net, have steadily expected mortgage rates to rise and home price appreciation to moderate,” said Doug Duncan of Fannie Mae. “Furthermore, consumers’ perception of their income over the past year deteriorated sharply in October to the worst showing since early 2013, weighing on the index. However, this component of the HPSI (home purchase sentiment index) is volatile from month to month, and the firming trend in wage gains from the October jobs report, if sustained, may foreshadow an improving view in the near future.”

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

The Wiregrass Residential Monthly Report is developed in conjunction with the Wiregrass Board of Realtors to better serve Wiregrass area consumers.