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Sales: According to the Dothan Multiple Listing Service Inc., Dothan-area residential sales totaled 136 units during May, an increase in sales of 6.3 percent from the same month in 2017, when sales totaled 128. Year-to-date sales are running 11.2 percent ahead of sales during the same period last year. Another resource to review is the Annual Report.
For all of Dothan’s area real estate data, click here.
Forecast: Closed transactions in May were two units below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s 2018 sales forecast through May projected 574 closed transactions, while the actual sales were 585 units, a favorable difference of 1.9 percent.
Supply: The Dothan-area housing inventory in May was 1,141 units, an increase of 3.4 percent from May 2017. May inventory was 3.1 percent above April. Historical data indicate that May inventory on average (2013-17) increases from April by 1.9 percent. There were 8.4 months of housing supply during May (approximately 6 months represents a balanced market) vs. 8.6 months of supply during the same period the previous year, a 2.6 percent decrease.
Demand: Residential sales decreased 6.2 percent from April. Historical data (2013-2017) indicate May sales typically increase 7.5 percent from April.
Pricing: The Dothan-area median sales price during May was $157,000, an 11.7 percent increase from May 2017 and a 12.2 percent increase from the prior month. This direction exceeds historical data, which indicate an increase of 3.1 percent in pricing typically recorded from April to May. Differing sample sizes (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE highly recommends consulting with a local real estate professional to discuss pricing trends, as they will vary from neighborhood to neighborhood.
Industry perspective: In both Alabama and the United States, the spring home-buying season has been affected greatly by very low inventory levels. April residential listings decreased 10 percent in the state and decreased 6 percent nationwide from one year ago. Residential sales in Alabama, however, increased 16 percent from one year ago, which is impressive considering the 10 percent drop in inventory. Home price appreciation cooled off somewhat as the statewide median sales price increased 2 percent from one year ago, while it increased 7 percent during the first quarter of the year. Going forward, home sales prices are expected to continue their upward climb during the summer as inventory levels are likely to repeat the declines that were seen during the spring.
Click here to generate more graphs from Dothan’s May Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.