Sales: According to the Dothan Multiple Listing Service Inc., Dothan-area residential sales totaled 118 units during August, an increase in sales of 0.9 percent from the same month in 2016, when sales totaled 117. Another resource to review is the Annual Report.
For all of Dothan’s area real estate data, click here.
Forecast: Closed transactions in August were 3 units or 2.6 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s 2017 sales forecast through August projected 844 closed transactions, while the actual sales were 914 units, a favorable difference of 8.6 percent.
Supply: The Dothan-area housing inventory in August was 1,135 units, an increase of 1.2 percent from August 2016. August inventory was 2.8 percent above July. Historical data indicate that August inventory on average (2012-16) increases from July by 2.3 percent. There were 9.68 months of housing supply during August (approximately 6 months represents a balanced market during August) vs. 9.62 months of supply during the same period the previous year.
Demand: Residential sales decreased 13.9 percent from July. Historical data (2012-2016) indicate August sales typically increase 0.6 percent from July.
Pricing: The Dothan-area median sales price during August was $147,250, an 8 percent decrease from August 2016 and a 1.8 percent decrease from the prior month. Historical data indicate an increase of 0.6 percent in pricing is typically recorded from July to August. 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: “For the first time in 2017, we have increased our full-year growth outlook. The upgrade reflects economic activity gaining momentum at the end of the second quarter, though we see a great deal of uncertainty surrounding the forecast,” said Fannie Mae Chief Economist Doug Duncan. “The list of uncertainties now extends beyond the geopolitical and legislative, as the effects of Hurricanes Harvey and Irma will require time to untangle. Historically, natural disasters that hit heavily populated areas led to substantial near-term declines in economic activity but meaningful rebounds in subsequent quarters due to rebuilding efforts. Thus, economic growth in the second half of 2017 could still average a slightly stronger pace than the first half. Unfortunately, we continue to expect home sales to be flat during the second half of the year compared to the first half due to strong home price appreciation and lean inventories.”
Click here to generate more graphs from Dothan’s August Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.