Sales: According to the Southeast Alabama Association of Realtors, Dothan-area residential sales totaled 113 units during December, down 0.9% from 114 sales in the same month a year earlier. December sales were up 4.6% compared to 108 sales in November. Results were 22.6% above the five-year December average of 92 sales. Two more resources to review: Quarterly Report and Annual Report.
For all of Dothan’s area real estate data, click here.
Inventory: Homes listed for sale in the Dothan area during December totaled 678 units, a decrease of 24.1% from December 2018’s 893 units and a decrease of 6.9% from November 2019’s 728 units. December months of supply totaled 6 months, a decrease of 23.4% from December 2018’s 7.8 months of supply. December months of supply decreased 11% from November’s 6.7 months of supply.
Pricing: The Dothan median sales price in December was $153,597, an increase of 13.4% from one year ago and an increase of 3.9% from the prior month. This direction is consistent with historical data (2014-18) indicating that the December median sales price on average increases from November by 6.5%. 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 December spent an average of 144 days on the market (DOM), up 2.1% from 141 days in December 2018 and up 12.5% from 128 days in November.
Forecast: December sales were five units above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 108 sales for the month, and actual sales were 113 units. ACRE forecast a total of 1,501 transactions in Dothan for 2019, while there were 1,645 actual sales through December.
ACRE’s statewide perspective: Residential sales growth continued in November but at a slower pace, as total residential sales increased 0.8% year-over-year from 4,598 to 4,635 closed transactions. Year-to-date, sales are up 4.2% from 2018, a record year for residential sales. Home price appreciation in the state continued to climb as the median sales price in November increased 9.3% year-over-year, marking 25 consecutive months of gains. The statewide median sales price is up 5.8% year-to-date. While properties listed for sale nationwide decreased 5.7% year-over-year, Alabama’s residential listings continued to tighten, decreasing 10.5% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and continued into the fourth quarter of 2019. With low inventory levels, it is not surprising to see homes selling at a slightly quicker pace than one year ago. Homes selling in Alabama during November spent an average of 92 days on the market, a decrease of one day from November 2018.
NAR’s national perspective: Existing-home sales declined slightly in November, decreasing 0.5% year-over-year from approximately 406,000 closed transactions one year ago to 402,000 currently. The nationwide median existing-home price increased 5.4% in November, marking 93 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “Sales will be choppy when inventory levels are low, but the economy is otherwise performing well, with more than 2 million job gains in the past year.” Properties listed for sale nationwide declined 5.7% in November from approximately 1.74 million listings one year ago to 1.64 million currently.
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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.