Sales: According to the Wiregrass Board of Realtors, August residential sales increased 11% year-over-year from 137 to 152 closed transactions. Following seasonal trends, sales decreased 11.1% from July. Sales are now up 15.2% year-to-date. Two more resources to review: Quarterly Report and Annual Report.
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Inventory: Total homes listed for sale in August declined 27.6% year-over-year from 257 to 186 listings. At the current sales pace, all the active inventory on the market would sell in 1.2 months, up from 1.1 month in July and down from 1.9 months in August 2020.
Pricing: The area’s median sales price in August was $175,000, an increase of 8% from one year ago and a decrease of 3.3% from July. 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 August averaged 51 days on the market (DOM), 25 days faster than August 2020.
Forecast: August sales were 14 units, or 9.8%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 138 residential sales for the month, and actual sales were 152 units sold. ACRE forecast a total of 1,043 sales in the area year-to-date, while there were 1,100 actual sales through August, a difference of 5.5%.
NAR Commentary: According to the National Association of Realtors (NAR), existing home sales nationwide increased for the second consecutive month in August rising 2% from July (seasonally adjusted annual rate). August sales were up 1.5% from one year ago. The median sales price for existing homes was $359,900, rising 17.8% year-over-year and marking 113 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 7.3% from July 2021 and is down 12% from one year ago. August’s 2.6 months of supply increased slightly from July (2.5) but is still well below August 2020 (3.1).
Lawrence Yun, chief economist for NAR said, “We see inventory beginning to tick up, which will lessen the intensity of multiple offers. Much of the home sales growth is still occurring in the upper-end markets, while the mid- to lower-tier areas aren’t seeing as much growth because there are still too few starter homes available.”
Yun added that home prices are likely to moderate in the months ahead, “Although we shouldn’t expect to see home prices drop in the coming months, there is a chance that they will level off as inventory continues to gradually improve.”.
ACRE Commentary: Home sales in Alabama decreased year-over-year (Y/Y) in August, falling 1.4% (seasonally unadjusted). Sales also declined month-over-month, down 7.7% from July. Year-to-date, however, sales are up 17.3% from 2020. The statewide median sales price reached another record high of $218,374 with sales price growth rates moderating somewhat, rising 11% Y/Y. The state’s housing supply received a much-needed measure of relief as listings increased 12% from July, but are still down 29.3% from one year ago. With slowing sales and rising inventory, months of supply increased from 1.2 in July to 1.5 in August. Listings are also expected to gradually increase in the coming months.
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The Wiregrass Residential Monthly Report is developed in conjunction with the Wiregrass Board 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 August 1 – 31, 2021. Thus, the performance represented is historical and should not be used as an indicator of future results.