Sales: According to the Southeast Alabama Multiple Listing Service Inc., Dothan-area residential sales totaled 154 units during August, up 14.9% from 134 sales in the same month a year earlier. August sales were down one unit compared to 155 sales in July. Results were 29% above the five-year August average of 119 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 August totaled 873 units, a decrease of 16.7% from August 2018’s 1,048 units and an increase of 5.9% from July 2019’s 824 units. August months of supply totaled 5.7 months, a decrease of 27.5% from August 2018’s 7.8 months of supply. August months of supply increased 6.6% from July’s 5.3 months of supply.
Pricing: The Dothan median sales price in August was $174,250, an increase of 25.6% from one year ago and an increase of 6.3% from the prior month. This direction is consistent with historical data (2014-18) indicating that the August median sales price on average increases from July by 1.8%. 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 August spent an average of 129 days on the market (DOM), up 5.7% from 122 days in August 2018 and up 15.2% from 112 days in July.
Forecast: August sales were two units, or 1.4%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 139 sales for the month, while actual sales were 141 units. ACRE forecast a total of 1,033 total transactions in Dothan year-to-date, while there were 1,136 actual sales through August.
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.”
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The Southeast Alabama Residential Monthly Report was developed in conjunction with the Southeast Alabama Association of Realtors to better serve area consumers.