Athens-area homes reach record high median sales price again in June

Sales: According to the Athens-Limestone Association of Realtors, June residential sales in the area increased 11.3% year-over-year (Y/Y) from 222 to 247 closed transactions, marking thirteen consecutive months of Y/Y gains. Following seasonal trends, sales increased 21.1% from May. Sales are now up 21.2% year-to-date. Two more resources to review: Quarterly Report and Annual Report.

For all of the Athens (Limestone County) housing data, click here.

Inventory: June listings (247) decreased 1.5% from May but declined 51.7% from one year ago. Months of supply (inventory to sales ratio) also decreased from 1.2 to 0.5, reflecting a market where seller’s generally have elevated bargaining power.

Pricing: The area’s median sales price in June was $299,900, a record high, and an increase of 18.1% from one year ago and 6.0% from May. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood.

Homes sold in June averaged 13 days on the market (DOM), a record low and 19 days faster than June 2020.

Forecast: June sales were 2 units, or 1.0%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 245 sales, and actual sales were 247 units. ACRE forecast a total of 1340 sales in the area year-to-date, while there were 1219 actual sales through June, a difference of 9.0%.

New Construction: The 91 new homes sold represent 32.8% of all residential sales in the area in June. Total sales increased 1.5% year-over-year. The median sales price in June was $299,900, an increase of 0.1% from May and an increase of 1.5% from one year ago.

NAR Commentary: According to the National Association of Realtors (NAR), existing home sales nationwide increased in June rising 1.4% from May (seasonally adjusted annual rate). The gain ends four consecutive months of declining sales. June sales were up 22.9% from one year ago. The median sales price for existing homes hit another historic high ($363,300), rising 23.4% year-over-year and marking 112 consecutive months of year-over-year gains. Rising home prices are largely a result of low housing inventory amid significantly elevated demand. Supply did improve somewhat, rising 3.3% from May 2021 but is still down 18.8% from June 2020. Months of supply (2.6) increased modestly from May but is still well below June 2020 (3.9).

Lawrence Yun, chief economist for NAR said, “Supply has modestly improved in recent months due to more housing starts and existing homeowners listing their homes, all of which has resulted in an uptick in sales. Home sales continue to run at a pace above the rate seen before the pandemic.”

Yun added that home prices are unlikely to decline saying, “At a broad level, home prices are in no danger of a decline due to tight inventory conditions, but I do expect prices to appreciate at a slower pace by the end of the year. Ideally, the costs for a home would rise roughly in line with income growth, which is likely to happen in 2022 as more listings and new construction become available.”

ACRE Commentary: Home sales in Alabama increased year-over-year (Y/Y) for the 13th consecutive month in June, rising 14.4%. Demand remains significantly elevated as home sales are now up 21.8% year-to-date. The statewide median sales price hit another record high of  $216,580, with sales price growth rates moderating somewhat, rising 11.7% Y/Y. The state’s housing supply received a small measure of relief as listings increased 6.3% from May, but is still down 39.4% from one year ago. June’s 1.2 months of supply also represents a record low, with properties selling an average of 34 days faster than June 2020.

Click here to view the entire monthly report.

The Athens Area (Limestone County) Monthly Residential Report is developed in conjunction with the Athens-Limestone Association of Realtors to better serve area consumers.

Editor’s Note: All information in this article reflects data provided to the Alabama Center for Real Estate for the time period June 1 – 30, 2021. Thus, the performance represented is historical and should not be used as an indicator of future results.

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