Dothan-area median home sales price up 16% from one year ago

Dothan-area median home sales price up 16% from one year ago
The number of Dothan-area homes sold in the first six months of 2019 exceeded the Alabama Center for Real Estate's sales projections by 11.7%. (file)

Sales: According to the Southeast Alabama Multiple Listing Service Inc., Dothan-area residential sales totaled 154 units during June, down 8.9% from 169 sales in the same month a year earlier. June sales were up 4.1% compared to 148 sales in May. Results were 24.8% above the five-year June average of 123 sales. Another resource to review is the Annual Report.

For all of Dothan’s area real estate data, click here.

Inventory: Homes listed for sale in the Dothan area during June totaled 873 units, a decrease of 21.9% from June 2018’s 1,118 units, and an increase of 5.2% from May 2019’s 830 units. June months of supply totaled 5.7 months, a decrease of 14.3% from June 2018’s 6.6 months of supply. June months of supply increased 1.1% from May’s 5.6 months of supply.

Pricing: The Dothan median sales price in June was $174,250, an increase of 16.2% from one year ago and an increase of 6% from the prior month. This direction is consistent with historical data (2014-18) indicating that the June median sales price on average increases from May by 10%. The differing sample size (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. The homes selling in June spent an average of 129 days on the market (DOM), unchanged from June 2018, while increasing 12.2% from 115 days in May.

Forecast: May sales were seven units, or 4.8%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 147 sales for the month, while actual sales were 154 units. ACRE forecast a total of 752 total transactions in Dothan year-to-date, while there were 840 actual sales through June.

ACRE’s statewide perspective: Statewide residential sales increased slightly in May, extending the streak to five consecutive months of year-over-year sales gains. Statewide residential sales increased 1.4% from 6,306 closed transactions in May 2018 to 6,392 in May 2019. Year-to-date, sales are up 3.2% from 2018. Home price appreciation in the state continued to climb as the median sales price in May increased 4.3% year-over-year from $165,688 to $172,864. The statewide median sales price is also up 3.4% year-to-date. Although nationwide inventory levels are trending upward, Alabama’s residential listings decreased 11.6% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and in the spring buying season of 2019. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during May spent an average of 88 days on the market, an improvement of 12 days from May 2018.

NAR’s national perspective: Existing home sales rebounded in May, posting their first year-over-year gain since August 2018. Nationwide sales increased 0.9% from approximately 535,000 closed transactions one year ago to 540,000 currently. The nationwide median existing-home price increased 4.8% in May, marking 87 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “The purchasing power to buy a home has been bolstered by falling mortgage rates, and buyers are responding.”

 

 

 

 

 

 

 

 

 

 

 

Click here to view the entire monthly report.

The Southeast Alabama Residential Monthly Report was developed in conjunction with the Southeast Alabama Association of Realtors to better serve area consumers.

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