Sales: According to the Cullman Association of Realtors Multiple Listing Service, Cullman County residential sales totaled 70 units during September, down 6.7% from 75 sales in the same month a year earlier. September sales were down 35.2% from 108 sales in August. Results were 0.8% below the five-year September average of 71 sales. Two more resources to review: Quarterly Report and the Annual Report.
For all Cullman County home sales data, click here.
Inventory: Homes listed for sale in Cullman County in September totaled 472 units, a decrease of 5.6% from September 2018’s 500 units, and an increase of 5.8% from August 2019’s 446 units. September months of supply totaled 6.7 months, equal to the same month a year earlier and an increase of 63.3% from August’s 4.1 months of supply.
Pricing: The Cullman County median sales price in September was $140,950, an increase of 0.7% from one year ago and a decrease of 17.1% from the prior month. This direction is consistent with historical data (2014-18) indicating that the September median sales price on average decreases from August by 3.8%. 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. The average number of days on the market (DOM) for the homes sold during September was 85 days, a decrease of 33.1% from 127 days in September 2018 and a decrease of 15% from 100 days in August.
Forecast: September sales were eight units, or 10.3%, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 78 sales for the month, while actual sales were 70 units. ACRE forecast a total of 685 residential sales in Cullman County year-to-date, while there were 736 sales through September.
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 Cullman County Residential Monthly Report is developed in conjunction with the Cullman Association of Realtors to better serve Cullman-area consumers.