Sales: According to the Lee County Association of Realtors Multiple Listing Service, Lee County area residential sales totaled 104 units during January, an increase of 9.5 percent or nine units above the same month in 2016, when sales totaled 95 units. Two more resources to review: Quarterly Report and Annual Report.
Forecast: January sales were 14 units or 16 percent above ACRE’s monthly forecast. ACRE’s sales forecast for January projected 90 closed transactions, while the actual sales were 104 units.
Supply: The Lee County housing inventory in January was 381 units, a decrease of 36 percent from January 2016 and a 73 percent decrease from the January inventory peak in 2011 (1,393 units). January inventory in Lee County decreased 10 percent from December. This direction contrasts with historical data indicating that January inventory on average (2012-16) increases from December by 3.4 percent.
The inventory-to-sales ratio in January was 3.7 months of housing supply. Restated, at the January sales pace, it would take 3.7 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months during January. Lee County was one of Alabama’s most balanced markets in January, especially compared to January 2009’s 29.5 months of supply.
Demand: January residential sales decreased 16 percent from December. This direction is consistent with seasonal buying patterns and historical data indicating that January sales on average (2012-16) decrease by 28 percent from December.
Pricing: The Lee County median sales price during January was $223,700, up 7 percent from January 2016. The January median sales price was up 6.5 percent compared to the December median sales price. Historical data (2012-16) indicate that the January median sales price on average increases from the December price by 0.7 percent. Pricing can fluctuate from month to month as the sample size of data (closed transactions) is subject to seasonal buying patterns. ACRE recommends contacting a local real estate professional to discuss the latest pricing trends.
Industry perspective: “We expect housing to remain resilient and continue its recovery in 2017, with affordability standing out as the industry’s greatest obstacle, particularly for first-time homeowners,” said Fannie Mae Chief Economist Doug Duncan. “Demographic factors, however, are positive. Our research shows that older millennials have begun to buy homes and close the homeownership attainment gap with their predecessors.”
Click here to generate more graphs from the Lee County January Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.