We had the "State of the City" address here in Enterprise by our Mayor only a couple of weeks ago. With the number of marketing reports already performed for potential new businesses, such as the new Chick-fil-a opening in a few months, it's easy to see that this will be a GREAT year!
December residential sales in the Wiregrass region of Alabama (the Southeastern corner of the state) slipped by 22.0 percent when compared to December of 2011. Residential sales for 2012 also declined by 15.2 percent. There were 128 fewer housing units closed in 2012.
But, with the local unemployment rate below both state and national levels, our market is poised to show gradual improvement and favorable progress in 2013.
Supply: The Wiregrass area housing inventory totaled 930 units, an increase of 9.3 percent from December 2011. In contrast, December inventory declined by 3.8 percent from November. Historical data indicates that December inventory on average (’07-’11) decreases from the month of November by 1.9 percent so outperforming this trend IS favorable news. Inventory levels remain at peak levels. The inventory-to-sales ratio in December remains higher than desired at 20.2 months of housing supply. The market equilibrium (balance between supply and demand) is approximately 6-7 months so this represents an area where continued improvement would be welcome news, but has been at this level for a few years now.
Demand: December residential sales were, unfortunately, 11.5 percent below the prior month. Historical data indicates that December sales on average (’07-’11) typically decrease from the month of November by 17.4 percent. Days on Market (DOM) have increased by 6.6 percent from December 2011 - OUCH.
Pricing: The Wiregrass median selling price in December was $130,700, a decrease of 2.5 percent from last December but an increase of 24.5 percent when compared to November. Again, the historical seasonal data ('07-'11) reflects that the December median selling price typically decreases from the month of November by 2.7 percent, so we had a big gain here!
Real estate sales are seasonal and the sales pace slows during the winter months. But, seventy-two percent (18 of 25) of the local housing markets across the State experienced year-over-year sales growth in 2012. Latest economic forecast entering the new year, "The economy still has only weak forward momentum. Some underlying fundamentals are improving—most importantly, housing. We expect that the fog of uncertainty (US fiscal policy) will gradually clear during 2013, setting the stage for a broad-based improvement in economic growth in 2014."
So, I'm ready for a fantastic year. This January has been a great start for 2013!!
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