Sales: According to the Multiple Listing Service of the Shoals Area Association of Realtors, Shoals-area home sales totaled 208 units during August, down 0.5%% from 209 sales in the same month a year earlier. August home sales were up 9.5% from July 2019’s 190 units. Results were 24.7% above the five-year August average of 167 sales. Two more resources to review: Quarterly Report and Annual Report.
For all Shoals-area housing data, click here.
Inventory: Homes listed for sale in the Shoals area during August totaled 804 units, a decrease of 9.4% from August 2018’s 887 units. Shoals-area inventory experienced a 4.3% decrease from July 2019. The area also experienced a year-over-year decline in months of supply. August months of supply totaled 3.9 months, a decrease of 8.9% from August 2018’s 4.2 months. August months of supply decreased 12.6% from July’s 4.4 months of supply.
Pricing: The Shoals-area median sales price in August was $138,750, a decrease of 9.3% from one year ago but an increase of 2.4% 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 66 days on the market (DOM), down 17.5% from 80 days in August 2018 and up 8.2% from 61 days in July 2019.
Forecast: August sales were 27 units, or 14.9 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 181 sales for the month, while actual sales were 208 units. ACRE forecast a total of 1,259 residential sales in the Shoals area year-to-date, while there were 1,388 actual sales through August.
ACRE’s statewide perspective: A strong late-summer buying season continued in August as total residential sales increased 7.5% year-over-year from 5,862 to 6,302 closed transactions. Year-to-date, sales are up 3.8% from 2018, a record year for residential sales. Home price appreciation in the state continued to climb as the median sales price in August increased 8.1% year-over-year, marking 22 consecutive months of gains. The statewide median sales price is up 4.7% year-to-date. While nationwide inventory levels (active listings) decreased 2.6% year-over-year, Alabama’s residential listings continue to tighten, decreasing 12.6% 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 not surprising to see homes selling at a slightly quicker pace than one year ago. Homes selling in Alabama during August spent an average of 86 days on the market, a decrease of nine days from August 2018.
NAR’s national perspective: After a 3.3% gain in July, existing home sales decreased 0.9% year-over-year in August from approximately 539,000 closed transactions one year ago to 534,000 currently. The nationwide median existing-home price increased 4.7% in August, marking 90 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “As expected, buyers are finding it hard to resist the current (mortgage) rates. The desire to take advantage of these promising conditions is leading more buyers to the market.” He continued, “Sales are up, but inventory numbers remain low and are thereby pushing up home prices. Homebuilders need to ramp up new housing, as the failure to increase construction will put home prices in danger of increasing at a faster pace than income.”
Click here to view the entire monthly report.
The Shoals Area Residential Monthly Report is developed in conjunction with the Shoals Area Association of Realtors to better serve its area consumers.