Sales: According to the Multiple Listing Service of the Wiregrass Board of Realtors, Wiregrass-area home sales totaled 125 units during August, up 30.2% from 96 sales in the same month a year earlier. August sales increased 21.4% compared to 103 sales in July. Results were 41.4% above the five-year August average of 88 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 August averaged 493 units, a decrease of 30.1% from August 2018’s 705 units and a decrease of 1% from July 2019’s 498 units. August months of supply totaled 3.9 months, a decrease of 46.3% from 7.3 months in August 2018. August months of supply decreased 18.4% from July’s 4.8 months of supply.
Pricing: The Wiregrass-area median sales price in August was $141,000, an increase of 1.4% from one year ago and a decrease of 5.4% 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 August spent an average of 89 days on the market (DOM), a decrease of 7.3% from 96 days in August 2018 and a decrease of 3.3% from 92 days in July 2019.
Forecast: August sales were 26 units or 26.3% above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE forecast 99 sales for the month, and actual sales were 125 units. ACRE forecast a total of 735 residential sales in the Wiregrass area year-to-date, while there were 805 actual sales through August.
ACRE’s statewide perspective: After a slight decline in June, statewide residential sales rebounded in July, increasing 10.2% from 5,722 closed transactions in July 2018 to 6,307 in July 2019. Year-to-date, sales are up 3.1% from 2018, a record year for residential sales. Home price appreciation in the state continued to climb as the median sales price in July increased 4.6% year-over-year from $169,178 to $176,926. The statewide median sales price is up 4.2% year-to-date. While nationwide inventory levels (active listings) decreased 1.6% year-over-year, Alabama’s residential listings continue to tighten, decreasing 9.9% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and in the summer buying season of 2019. With low inventory levels, it is surprising to see homes selling at a slightly slower pace than one year ago. Homes selling in Alabama during July spent an average of 89 days on the market, an increase of three days from July 2018.
NAR’s national perspective: After a 7.4% drop in June, existing home sales strengthened in July. Nationwide residential sales increased 3.3% from approximately 523,000 closed transactions one year ago to 540,000 currently. The nationwide median existing-home price increased 4.3% in July, marking 89 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “Falling mortgage rates are improving housing affordability and nudging buyers into the market.” However, he added that the supply of affordable housing is low across the nation. “The shortage of lower-priced homes has markedly pushed up home prices.”
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The Wiregrass Residential Monthly Report is developed in conjunction with the Wiregrass Board of Realtors to better serve its area consumers.