Small Market Update: Third Quarter 2019
In the third quarter of 2019, total residential sales in Cherokee County dropped somewhat when compared to one year ago. However, median sales price increased significantly and properties in the area sold faster than during the third quarter of 2018. Total sales decreased 15.2% year over year (y/y) from 79 to 67 closed transactions. Sales were 7% above the 5-year average of 63. Median sales price increased 18.9% y/y to $184,633 and increased 35.7% from the 5-Yr Avg of $136,047. Quarter 3 average sales price rose from $170,324 one year ago to $191,817, a 12.6% increase. Days on market saw an improvement of 5.2% with an average decrease of 7 days spent on the market per unit. Similar to other markets in north Alabama, Cherokee County’s residential units listed for sale also decreased 17.2% this quarter when compared to last year’s total of 205 homes listed for sale. The inventory-to-sales ratio decreased this quarter coming to 7.8 months of supply compared to last year’s Quarter 3 total of 8.2. Despite this small year over year decrease, current results are still 43.1% below the 5-year average of 13.8. An additional resource is the Cherokee County Annual Report.
Covington County’s third quarter total sales increased 9.5% from last year, increasing from 74 units to 81 units. Moreover, total sales in the area were 18.4% above the 5-year average of 68 units sold. The median sales price in Covington increased 28.9% from last year, rising from $115,333 to $148,667. Furthermore, Covington’s average sales price increased as well this quarter. The third quarter average sales price increased 19.3% from last year, resulting in an improvement from $123,147 to $146,966. Residential real estate in Covington County sold 24 days faster compared to last year, a decrease of 15.2%. Lastly, Covington’s months of supply decreased from last year’s 13.5 months to 8.9 months currently, which is 33.9% below the 5-year average of 13.4 months. For more information on Covington County see their Annual Report.
The number of homes sold during the third quarter remained unchanged from last year at 89 sales. Total sales were 32% above the 5-year average of 67 sales. While sales remained unchanged, median sales price increased 6.4% to $158,267 when compared to last year’s quarter 3 median price of $148,767. The average sales price in Jackson during the third quarter of 2019 was $211,356, a 5.9% increase from the third quarter of 2018’s average sales price of $199,595. The average number of days on the market (DOM) during the third quarter was 125 days. This was 23 days above last year’s average and 4 days above the 5-year average. Mirroring trends seen in other north Alabama markets, residential units listed for sale in the third quarter of 2019 decreased by 15.5% y/y, while statewide inventory was down 10.7% in the same period. Finally, months of supply also decreased from 6.3 months last year to 5.4 months in this quarter, signaling a shift to a seller’s market in the area. An additional resource for Jackson County: Annual Report.
Total residential sales in Monroe County increased an impressive 125% 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%, 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% 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% from 103 to 119 when compared to last years totals. 2019 quarter 1 sales were also 34.9% above the 5-year average of 88 transactions. Median sales price saw a slight decrease the quarter falling 5.6% from last year’s $146,467 to this year’s $138,667. Average sales also saw a slight decrease this quarter, falling 4.8% from last year's average of $162,336 to this year’s $154,511. However, this quarter’s totals are still 10.6% 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% from 119 one year ago to 83 currently. Months of supply decreased 13.3% 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% below 5-year quarterly average of 15.2. Another resource for Talladega County: Annual Report.
CCIM 4Q19/1Q20 CRE Insights Report