Dothan home sales slip in June

Dothan home sales slip in June
Housing inventory was down year-over-year, and sales for the first half of 2017 remain ahead of projections. (File)

Click here to view or print the entire monthly report compliments of the ACRE Corporate Cabinet.

Sales: According to the Dothan Multiple Listing Service Inc., Dothan-area residential sales totaled 117 units during June, a decrease in sales of 13 percent from the same month in 2016, when sales totaled 135. Another resource to review is the Annual Report.

For all of Dothan’s area real estate data, click here.

Forecast: Closed transactions in June were 3 units or 3 percent below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s 2017 sales forecast through June projected 612 closed transactions, while the actual sales were 662 units, a favorable difference of 8 percent.

Supply: The Dothan-area housing inventory in June was 1,117 units, a decrease of 4.4 percent from June 2016. June inventory was 1.3 percent above May. Historical data indicate that June inventory on average (2012-16) increases from May by 1.2 percent. There were 9.5 months of housing supply during June (approximately 6 months represents a balanced market during June) vs. 8.7 months of supply during the same period the previous year, a 9.7 percent increase.

Demand: Residential sales decreased 9 percent from May. Historical data (2012-2016) indicate June sales typically decrease 2.3 percent from May.

Pricing: The Dothan-area median sales price during June was $135,000, a 20 percent decrease from June 2016 and a 3.9 percent decrease from the prior month. Historical data indicate an increase of 7.6 percent in pricing is typically recorded from May to June. 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: “While second-quarter growth is poised to rebound, we expect growth to moderate through the remainder of 2017. Consumer spending, traditionally the largest contributor to economic growth, is sluggish and is lagging positive consumer sentiment and solid hiring,” said Fannie Mae Chief Economist Doug Duncan. “While labor market slack continues to diminish, wage growth is not accelerating and inflation has moved further below the Fed’s target. These conditions support our call that the Fed will continue gradual monetary policy normalization, announce its balance sheet tapering policy in September and wait until December for additional data, especially on inflation, before raising the fed funds rate for the third time this year.”

Click here to generate more graphs from Dothan’s June Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply. 

The Dothan Residential Monthly Report was developed in conjunction with the Dothan Association of Realtors to better serve area consumers.

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