Sales: According to the Lee County Association of Realtors Multiple Listing Service, Lee County home sales totaled 224 units during July, up 21.1% from 185 sales in the same month a year earlier. July sales were up 8.2% compared to 207 sales in June. Results were 17.8% above the five-year July average of 190 sales. Two more resources to review: Quarterly Report and Annual Report.
For all Lee County housing data, click here.
Inventory: Homes listed for sale in the Lee County area during July totaled 653 units, an increase of 11.2% from July 2018’s 587 units and a decrease of 4% from June’s 680 units. July months of supply totaled 2.9 months, a decrease of 8.1% from July 2018’s 3.2 months of supply. July’s months of supply decreased 11.3% from June’s 3.3 months of supply.
Pricing: The Lee County median sales price in July was $265,287, an increase of 9.6% from one year ago and an increase of 4% from the prior month. This direction is inconsistent with historical data (2014-18) indicating that the July median sales price on average decreases from June by 5.4%. 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 July spent an average of 73 days on the market (DOM), an increase of 37.7% from 53 days in June 2018 and an increase of 17.7% from 62 days in June.
Forecast: July sales were 28 units, or 11.1%, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 252 sales for the month, while actual sales were 224 units. ACRE forecast a total of 1,347 residential sales in the Lee County area year-to-date, while there were 1,273 actual sales through July.
ACRE’s statewide perspective: After a slight decline in June, statewide residential sales rebounded in July, increasing 10.2% from 5,722 closed transactions in July 2018 to 6,307 in July 2019. Year-to-date, sales are up 3.1% from 2018, a record year for residential sales. Home price appreciation in the state continued to climb as the median sales price in July increased 4.6% year-over-year from $169,178 to $176,926. The statewide median sales price is up 4.2% year-to-date. While nationwide inventory levels (active listings) decreased 1.6% year-over-year, Alabama’s residential listings continue to tighten, decreasing 9.9% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and in the summer buying season of 2019. With low inventory levels, it is surprising to see homes selling at a slightly slower pace than one year ago. Homes selling in Alabama during July spent an average of 89 days on the market, an increase of three days from July 2018.
NAR’s national perspective: After a 7.4% drop in June, existing home sales strengthened in July. Nationwide residential sales increased 3.3% from approximately 523,000 closed transactions one year ago to 540,000 currently. The nationwide median existing-home price increased 4.3% in July, marking 89 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “Falling mortgage rates are improving housing affordability and nudging buyers into the market.” However, he added that the supply of affordable housing is low across the nation. “The shortage of lower-priced homes has markedly pushed up home prices.”
Click here to view the entire monthly report.
The Lee County Residential Monthly Report is developed in conjunction with the Lee County Association of Realtors to better serve its area consumers.