Sales: According to ValleyMLS.com, Gadsden-area home sales totaled 67 units during November, down 4.3% from 70 sales in the same month a year earlier. November sales were down 5.6% compared to 71 sales in October. Results were 16.7% above the five-year November average of 57 sales. Year-to-date sales were 3.5% above the same point in 2018. Two more resources to review: Quarterly Report and Annual Report.
For all Gadsden-area housing data, click here.
Inventory: Homes listed for sale in the Gadsden area during November totaled 387 units, a decrease of 16.4% from November 2018’s 463 units and a decrease of 4% from October 2019’s 403 units. November months of supply totaled 5.8 months, a decrease of 12.7% from November 2018’s 6.6 months of supply. November’s months of supply increased 1.8% from October 2019’s 5.7 months of supply.
Pricing: The Gadsden median sales price in November was $105,000, a decrease of 22.2% from one year ago and a decrease of 25.8% from the prior month. This direction is inconsistent with historical data (2014-18) indicating that the November median sales price on average increases from October by 4.1%. 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 November spent an average of 90 days on the market (DOM), a decrease of 12.6% from 103 days in November 2018 and a decrease of 1.1% from 91 days during the prior month.
Forecast: November sales were five units, or 8.1%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 62 sales for the month, while actual sales were 67 units. ACRE forecast 867 residential sales in the Gadsden area year-to-date, while there were 857 sales through November.
ACRE’s statewide perspective: Residential sales growth continued in November but at a slower pace, as total residential sales increased 0.8% year-over-year from 4,598 to 4,635 closed transactions. Year-to-date, sales are up 4.2% from 2018, a record year for residential sales. Home price appreciation in the state continued to climb as the median sales price in November increased 9.3% year-over-year, marking 25 consecutive months of gains. The statewide median sales price is up 5.8% year-to-date. While properties listed for sale nationwide decreased 5.7% year-over-year, Alabama’s residential listings continued to tighten, decreasing 10.5% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and continued into the fourth quarter 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 November spent an average of 92 days on the market, a decrease of one day from November 2018.
NAR’s national perspective: Existing-home sales declined slightly in November, decreasing 0.5% year-over-year from approximately 406,000 closed transactions one year ago to 402,000 currently. The nationwide median existing-home price increased 5.4% in November, marking 93 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “Sales will be choppy when inventory levels are low, but the economy is otherwise performing well, with more than 2 million job gains in the past year.” Properties listed for sale nationwide declined 5.7% in November from approximately 1.74 million listings one year ago to 1.64 million currently.
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The Gadsden Residential Monthly Report is developed in conjunction with the Etowah-Cherokee County Association of Realtors to better serve its area consumers.