Small Market Update: Quarter 4
In the first quarter of 2019, total sales and median price in Cherokee County slowed down somewhat when compared to one year ago. However, properties in the area sold much faster than one year ago. Total sales decreased 14.9 percent year over year (y/y) from 47 to 40 closed transactions. Sales were also 5.7 percent below the 5-year average of 42. Median sales price decreased 4.2 percent to $139,167. However, this is 18.8 percent above the 5-year average of $117,117. Quarter 1 average sales price fell from $173,464 one year ago to $155,600, a 10.3 percent decrease. Days on market saw an improvement of 31.8 percent totalling to an average decrease of 70 days spent on the market per unit. Similar to other markets in north Alabama, Cherokee County’s residential units listed for sale also decreased 17 percent this quarter when compared to last years total of 185 homes listed for sale. The inventory-to-sales ratio saw a minute decrease this quarter coming to 11.6 compared to last years Quarter 1 total of 12.0. Despite this small year over year decrease, current results are still 37.5 percent below the 5-year average of 18.5. An additional resource is the Cherokee County Annual Report.
Covington County’s first quarter total sales increased 28.3 percent from last year, increasing from 60 units to 77 units. Moreover, total sales in the area were 51.0 percent above the 5-year average of 51 units sold. The median sales price in Covington increased 16.7 percent from last year, increasing from $88,500 to $103,250. Furthermore, Covington’s average sales price increased by a small amount this quarter. The first quarter average sales price increased 4.2 percent from last year, consisting of an improvement from $104,576 to $108,989. Residential real estate in Covington County sold 75 days faster compared to last year, a decrease of more than 35 percent. Lastly, Covington’s months of supply increased from last year’s 14.7 months to 17.9 months, which is 6 percent above the 5-year average of 16.9 months. For more information on Covington County see their Annual Report.
The number of homes sold during the first quarter increased 8.3 percent from 48 to 52, 3.7 percent below the 5-year average of 54. While sales were on the rise, median sales price dropped 17.1 percent to $118,833 when compared to last years quarter 1 median price of $143,267. The average sales price in Jackson during the first quarter of 2019 was $144,956, a 19.4 percent decrease from the first quarter of 2018’s average sales price of $179,888.However, the decline in both median and average sales price in the area has the potential to create opportunities for buyers. Another improvement in Jackson County this quarter was a 45.9 percent reduction in days spent on the market, which declined from 184 one year ago to 99 currently. Mirroring trends seen in other north Alabama markets, residential units listed for sale in the first quarter of 2019 decreased by 16.2 percent y/y, while statewide inventory was down 9.5 percent in the same period. Finally, months of supply also decreased from 11.5 months last year to 9.0 months in this quarter, signaling a buyer’s market in the area. An additional resource for Jackson County: Annual Report.
Total residential sales in Monroe County increased an impressive 125 percent y/y, rising from 12 to 27 units sold. First quarter sales were significantly higher than the 5-year average of 16 closed transactions. Months of supply saw significant decreases for Monroe County in the first quarter. Months of supply declined 67.9 percent, dropping from 54.7 months to 17.6 months. Moreover, the months of supply was 46.4 below the 5-year average of 32.8 months of supply. Days on market, however, improved 260 days (55.9 percent improvement) from 465 days on the market in Q1 2018 to 205 currently. An additional resource for Monroe County: Annual Report.
Total residential sales in Talladega County increased 15.5 percent from 103 to 119 when compared to last years totals. 2019 quarter 1 sales were also 34.9 percent above the 5-year average of 88 transactions. Median sales price saw a slight decrease the quarter falling 5.6 percent from last year’s $146,467 to this year’s $138,667. Average sales also saw a slight decrease this quarter, falling 4.8 percent from last year's average of $162,336 to this year’s $154,511. However, this quarter’s totals are still 10.6 percent the 5-year average of $139,728. Residential properties in the area are selling much faster than one year ago. Average DOM declined 30.4 percent from 119 one year ago to 83 currently. Months of supply decreased 13.3 percent year over year, going from 9.9 months to 8.6 months, signaling a buyer’s market in the area. Moreover, the first quarter months of supply is 43.6 percent below 5-year quarterly average of 15.2. Another resource for Talladega County: Annual Report.
Walker County’s first quarter total residential sales increased 1.0 percent from last year, improving from 199 units to 201 units sold. Furthermore, Walker County’s total sales were 33.2 percent above the 5-year average of 151 sales. Median sales price also saw strong increases, with a 9.6 percent improvement from last year. Sales prices increased from $110,500 to $124,467. Similarly, the average sales price increased 19.2 percent, improving from $156,748 to $186,768. Walker County homes also sold 41 days faster compared to last year, with days on market declining from 179 days to 138 days, a 23.3 percent change. Lastly, months of supply for the fourth quarter totaled 6.8 months, which is a 54.8 percent decrease from the 15.1 months of supply last year. The 7.2 months of supply was also 55.4 percent below the 5-year average. An additional resource for Walker County: Annual Report.
CCIM 4Q19/1Q20 CRE Insights Report