Small Market Update: Second Quarter 2019

Small Market Update: Second Quarter 2019

Topics: Research, Residential Real Estate

Markets: Cherokee County, Covington County, Jackson County, Monroe County, Statewide, Talladega County

Cherokee County

In the second quarter of 2019, total sales price in Cherokee County slowed down somewhat when compared to one year ago. However, properties in the area sold much faster than last year. Total sales decreased 13.9% year over year (Y/Y) from 72 to 62 closed transactions. However, sales were 5.1% above the 5-year average of 59. Contrary to the total sales trend, median sales price increased 9.8% to $159,250. This is 20.0% above the 5-year average of $132,663. Similarly to total sales, Quarter 2 average sales price fell from $177,624 one year ago to $165,469 this year, a 6.8% decrease. Days on market saw an improvement of 47.1% Y/Y, resulting in properties selling 84 days faster than during Q2 2018. Similar to other markets in north Alabama, Cherokee County’s residential units listed for sale also decreased 20.1% this quarter when compared to last years total of 213 homes listed for sale. The inventory-to-sales ratio saw a small decrease this quarter coming to 8.3 compared to last year’s Quarter 2 total of 9.1. Cherokee County is currently a buyer’s market. Current results are well below the 5-year average of 14.7 months, a 36.3% difference. An additional resource is the Cherokee County Annual Report.
 



Covington County:

Covington County’s second quarter total sales increased 31.7% from last year, increasing from 63 units to 83 units. Likewise, total sales in the area were 39.7% above the 5-year average of 59 units sold. Additionally, the median sales price in Covington increased 21.9% from last year, increasing from $95,667 to $116,604. Following the median sales price and total sales trends, Covington’s average sales price also increased this quarter. The first quarter average sales price increased 5.7% from last year, an improvement of $109,684 to $115,968. Residential real estate in Covington County sold 6 days faster compared to last year, a decrease of only 4.4%. Lastly, Covington’s months of supply significantly decreased from last year’s 15.6 months to 8.5 months. Although months of supply is not quite at equilibrium, it is trending towards a more balanced market. An additional resource for Covington County: Annual Report.
 

Jackson County:

The number of homes sold during the second quarter increased 4.7% from 85 to 89, 39.5% above the 5-year average of 64. Median sales price increased 1.6% to $151,633 when compared to last years quarter 2 median price of $149,300. Following the median sales price trend, average sales price in Jackson during the second quarter of 2019 was $194,464, a 6.3% increase from the second quarter of 2018’s average sales price of $182,969. Despite the improvements in total sales, average sales price, and median sales price, the average days on market in the second quarter of 2019 increased from 98 days last year to 120 days currently. However, Jackson county is still well below the 5-year average of 143 days. Mirroring trends seen in other north Alabama markets, residential units listed for sale in the second quarter of 2019 decreased by 9.9% Y/Y. Finally, months of supply also decreased from 6.3 months last year to 5.4 months in this quarter, signaling a seller’s market in the area. An additional resource for Jackson County: Annual Report.
 



Monroe County:

Unlike most of the other small markets, residential sales in Monroe County decreased 26.2% Y/Y, falling from 42 to 31 units sold in the second quarter of 2019. However, second quarter sales were slightly higher than the 5-year average of 26 closed transactions. Months of supply saw significant increases for Monroe County in the second quarter. Months of supply increased 68.8%, rising from 10.4 months to 17.5 months. This quarterly trend is not surprising, considering the total homes listed for sale is up from 140 last year to 161 this year. Days on market saw a significant improvement from last year, decreasing from 337 days in 2018 to 2019 days in, a 40.4% decrease. An additional resource for Monroe County: Annual Report.
 



Talladega County

Total residential sales in Talladega County decreased 6.7% from 164 to 153 when compared to last years totals. However, 2019 quarter 2 sales were 16.4% above the 5-year average of 131 transactions. Median sales price saw a slight increase this quarter rising 3.9% from last year’s $146,550 to this year’s $141,083. Average sales saw a slight decrease this quarter, falling 3.2% from last year's average of $173,212 to this year’s $167,626. However, this quarter’s totals are still 8.4% the 5-year average of $154,707. Residential properties in the area are selling much faster than one year ago. Average DOM declined 23.5% from 109 one year ago to 83 currently. Months of supply increased 6.4% year over year, rising from 5.9 months to 6.3 months, signaling a buyer’s market in the area. Moreover, the second quarter months of supply is 37.5% below 5-year quarterly average of 10.1. Another resource for Talladega County: Annual Report.