Sales: According to the Dothan Multiple Listing Service Inc., Dothan-area residential sales totaled 82 units during February, a decrease in sales of 11 percent from the same month in 2016, when sales totaled 92. Another resource to review is the Annual Report.
For all of Dothan’s area real estate data, click here.
Forecast: Closed transactions in February were four units below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s 2017 sales forecast through February projected 163 closed transactions, while the actual sales were 182 units, a favorable difference of 11 percent.
Supply: The Dothan-area housing inventory in February was 1,028 units, a decrease of 7.5 percent from February 2016. February inventory was 1 percent above January. Historical data indicate that February inventory on average (2012-16) decreases from January by 18.5 percent. There were 12.5 months of housing supply during February (approximately 6 months represents a balanced market during February) vs. 12.1 months of supply during the same period the previous year, a 3.8 percent increase.
Demand: Residential sales decreased 18 percent from January. Historical data (2012-2016) indicate February sales typically decrease 2.2 percent from January.
Pricing: The Dothan-area median sales price during February was $138,948, a 6 percent increase from February 2016 but a 1.2 percent decrease from the prior month. This direction is consistent with historical data, which indicate a decrease of 22.8 percent in pricing is typically recorded from January to February. Differing sample sizes (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.
Industry perspective: “We expect the housing expansion to continue, albeit at a more moderate pace than last year given continued pressure on affordability,” said Fannie Mae Chief Economist Doug Duncan. “Depressed inventory, particularly in the more affordable segments, will likely constrain sales and push home price gains that outpace income growth. A faster pace of monetary tightening, unless accompanied by a stronger increase in household income, also poses downside risk to housing.”
Click here to generate more graphs from Dothan’s February Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.