Wiregrass Region Begins 2020 with Large Gain in Home Sales
Sales: According to the Wiregrass Board of Realtors, January residential sales increased 124.4% year-over-year from 45 to 101 closed transactions. Going against seasonal trends, sales increased 12.2% from December. Results were 77.2% above the 5-year January average of 57 sales. Two more resources to review: Quarterly Report and Annual Report.
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Inventory: Total homes listed for sale in January declined 30.3% year-over-year from 611 to 426 listings. The market currently has 4.2 months of supply, down 68.9% from 13.6 months of supply in January 2019.
Pricing: The area’s median sales price in January was $135,000, an increase of 14.4% from one year ago and a decrease of 6.1% from the prior month. This direction is consistent with historical data (2015-2019) indicating that the January median sales price on average decreases from December by 11.3%. 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. The average number of days on the market (DOM) for homes sold during January was 84 days, down 32.3% from 124 days one year ago and up 1.2% from 83 days in December 2019.
ACRE’s statewide perspective: Residential sales growth was especially strong in January as total residential sales increased 23.2% year-over-year from 3,347 to 4,122 closed transactions. Markets across the state have plenty of momentum as 2019 was a record year for residential sales in Alabama. Home price appreciation continued to climb as the median sales price in January increased 11.8% year-over-year, marking 27 consecutive months of gains. While properties listed for sale nationwide decreased 10.7% year-over-year, Alabama’s residential listings continued to tighten, decreasing 17% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2019 and continued into January. With low inventory levels, it is not surprising to see homes selling at a slightly quicker pace. Homes selling in Alabama during January spent an average of 92 days on the market, a decrease of 15 days from January 2019.
NAR’s national perspective: Existing home sales increased significantly in January, rising 11.6% year-over-year from approximately 285,000 closed transactions one year ago to 318,000 currently. The nationwide median existing-home price increased 6.8% in January, marking 95 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “The trend line for housing starts is increasing and showing steady improvement, which should ultimately lead to more home sales. Mortgage rates have helped with affordability, but it is supply conditions that have driven price growth.” Properties listed for sale nationwide declined 10.7% in January from approximately 1.59 million listings one year ago to 1.42 million currently.
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The Wiregrass Residential Monthly Report is developed in conjunction with the Wiregrass Board of Realtors to better serve area consumers.