Click here to view or print the entire monthly report compliments of the ACRE Corporate Cabinet.
Sales: According to the North Alabama Multiple Listing Service, Marshall County home sales in February were 32.5 percent above February 2016 at 53 sales for the month. Home sales in February 2016 totaled 40 units. Sales in February also increased 8 percent from January. Another resource to review is the Annual Report.
Supply: Marshall County housing inventory totaled 508 units, a decrease of 9 percent from February 2016. February inventory decreased 0.2 percent from January. This direction contrasts with historical data that indicate February inventory on average (2012-16) increases from January by 2.5 percent.Forecast: February sales were eight units or 13 percent below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s 2017 sales forecast through February projected 115 closed transactions, while the actual sales were 102 units, a negative difference of 11 percent.
The inventory-to-sales ratio has improved to 9.6 months of supply. Restated, at the February sales pace, it would take 9.6 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months during February, so continued improvement would be welcome news for market participants.
Pricing: The Marshall County area median sales price in February was $118,000, an increase of 7.3 percent from February 2016’s $110,000. The February median sales price was 7.3 percent above the January median sales price. Historical data indicate that the February median sales price on average (2012-16) decreases from January by 8 percent. Pricing can fluctuate from month to month as the sample size of data is subject to seasonal buying patterns. ACRE recommends contacting a local real estate professional for additional market pricing information.
Industry perspective: “We expect the housing expansion to continue, albeit at a more moderate pace than last year given continued pressure on affordability,” said Fannie Mae Chief Economist Doug Duncan. “Depressed inventory, particularly in the more affordable segments, will likely constrain sales and push home price gains that outpace income growth. A faster pace of monetary tightening, unless accompanied by a stronger increase in household income, also poses downside risk to housing.”
Click here to generate more graphs from the Marshall County February Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.