Top 5 Markets for Price Appreciation through August
The Alabama Center for Real Estate created the following rankings based on year-to-date median price appreciation through August.
1. Morgan County - 14.9 percent
2. Gadsden - 14 percent
3. Phenix City - 10.4 percent
4. Calhoun County - 9.5 percent
5. Athens - 8.9 percent
Statewide Average: 5.2 percent
National Average: 5 percent
Morgan County: Home values are on the rise in the Decatur area as it led all markets in the state in year-to-date (YTD) median price appreciation through August. Sales prices increased 14.9 percent YTD from $122,388 in 2017 to $140,675 currently. Inventory shortages played a significant role in driving prices upwards throughout 2018. Residential inventory in the area was down 28.8 percent during August, while the statewide inventory dropped 11.4 percent. Other markets in the north Alabama region experiencing major year-over-year inventory declines include: Huntsville down 24.6 percent, the Shoals Area down 10.9 percent, Athens down 25.3 percent, Cherokee County down 11.4 percent, Cullman down 16.6 percent, and Marshall County down 16.7 percent. With rising prices and declining inventory in the Decatur area, it is not surprising to see YTD average days on market drop from 105 in 2017 to 85 in 2018. The market currently has 2.6 months of supply.
Gadsden: We’re staying in the north Alabama region for Alabama’s second fastest rising home values through August. Median sales price in the Gadsden area increased 14 percent YTD from $110,231 to $125,704. Demand for residential housing in the area is strong as YTD sales are up 4.1 percent from one year ago and average DOM dropped from 142 to 113. Mirroring statewide trends, inventory in the Gadsden area is down, but the 2.3 percent drop in listings is mild when compared to other markets in the north Alabama region. The market currently has 5.6 months of supply.
Phenix City: The only market outside of the north Alabama region to make the top five price appreciation rankings was Phenix City where the YTD median sales price increased 10.4 percent from $140,875 to $155,494. Phenix City also went against statewide inventory trends as residential listings increased 1 percent year-over-year during August. Of Alabama’s 12 metropolitan areas, Phenix City and Anniston were the only two cities to experience inventory gains during August. Residential sales improved 3.1 percent YTD from 776 during 2017 to 800 currently. Homes in the area selling 12 days faster than one year ago as YTD average days on market dropped from 122 to 109. The market currently has 3.7 months of supply.
Calhoun County: Alabama’s fourth-fastest rising home values are found in the Anniston area where the YTD median sales price increased 9.5 percent from $119,813 to $131,144. Going against inventory trends seen statewide and in other markets with strong YTD median price appreciation, residential listings are up 2 percent from one year ago. Total residential sales increased 1.4 percent YTD from 1,131 in 2017 to 1,147 currently. Homes are selling at a quicker pace than last year as YTD average days on market decreased from 111 to 87. The market currently has 5.6 months of supply.
Athens: We’re heading to the northern region of the state for our fifth-fastest rising home prices. The year-to-date median sales price in Athens increased 9.4 percent from $185,801 to $203,205. Mirroring regional and statewide trends, residential inventory in the area is down significantly as it fell 25.3 percent from one year ago. Demand for housing in the area remains strong as total sales increased 12.8 percent YTD from 1,105 in 2017 to 1,246 currently. Homes in the area are selling 29 days faster than one year ago as YTD average days on market dropped from 95 to 66. The market currently has 2.7 months of supply.
To view year-to-date data for all Alabama markets, see pages 4-8 of ACRE’s statewide report.
CCIM 4Q19/1Q20 CRE Insights Report