Sales: According to the Lee County Association of Realtors Multiple Listing Service, Lee County area residential sales totaled 209 units during July, an increase of 6.1 percent or 12 units from the same month in 2016, when sales totaled 197 units. Year-to-date sales were slightly behind the same period in 2016. Two more resources to review: Quarterly Report and Annual Report.
Forecast: July sales were 15 units or 6.7 percent below ACRE’s monthly forecast. ACRE’s 2017 sales forecast through July projected 1,154 closed transactions, while the actual sales were 1,160 units.
Supply: The Lee County housing inventory in July was 514 units, an increase of 0.8 percent from July 2016 and a 65 percent decrease from the July inventory peak in 2010 (1,472 units). July inventory in Lee County decreased 3.4 percent from June. This direction is consistent with historical data indicating that July inventory on average (2012-16) decreases from June by 2.3 percent.
The inventory-to-sales ratio in July was 2.5 months of housing supply. Restated, at the July sales pace, it would take 2.5 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months during July.
Demand: July residential sales increased 3 percent from June. This direction contrasts with seasonal buying patterns and historical data indicating that July sales on average (2012-16) decrease by 0.4 percent from June.
Pricing: The Lee County median sales price during July was $230,000, up 22.7 percent from July 2016. The July median sales price was down 6.1 percent compared to the June median sales price. Historical data (2012-16) indicate that the July median sales price on average decreases from the June price by 6.2 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 are keeping our full-year economic growth outlook at 2 percent as risks to our forecast are roughly balanced,” said Fannie Mae Chief Economist Doug Duncan. “On the upside, consumer spending growth might not moderate as much as we have accounted for in our forecast. A build-up in inventory also should be positive for growth this quarter, and nonresidential investment in structures will likely continue to improve as oil prices stabilize.”
Click here to generate more graphs from the Lee County July Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.
The Lee County Residential Monthly Report is developed in conjunction with the Lee County Association of Realtors to better serve Opelika/Auburn consumers.