Sales: According to the Dothan Multiple Listing Service Inc., Dothan-area residential sales totaled 117 units during September, an increase in sales of 5.4 percent from the same month in 2016, when sales totaled 111. Another resource to review is the Annual Report.
For all of Dothan’s area real estate data, click here.
Forecast: Closed transactions in September were 12 units or 11.4 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s 2017 sales forecast through August projected 949 closed transactions, while the actual sales were 1,034 units, a favorable difference of 9 percent.
Supply: The Dothan-area housing inventory in September was 1,078 units, a decrease of 3.1 percent from September 2016. September inventory was 3.1 percent above August. Historical data indicate that September inventory on average (2012-16) increases from August by 1.2 percent. There were 9.7 months of housing supply during September (approximately 6 months represents a balanced market) vs. 9.6 months of supply during the same period the previous year.
Demand: Residential sales decreased 0.8 percent from August. Historical data (2012-2016) indicate September sales typically increase 0.6 percent from August.
Pricing: The Dothan-area median sales price during August was $150,000, a 17.6 percent increase from September 2016 and a 1.9 percent increase from the prior month. Historical data indicate an increase of 0.6 percent in pricing is typically recorded from August to September. 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: “The impacts from this season’s hurricanes on the U.S. economy were wide-ranging but should dissipate over time. These include the loss of momentum in consumer spending and residential investment, as well as a decline in September payrolls and August home sales and contract signings,” said Fannie Mae Chief Economist Doug Duncan. “We expect economic activity to rebound in coming months. The recovery will likely be slower for home sales and home building, however, as the labor shortage and rising material prices will likely worsen after the hurricanes, exacerbating already-tight inventory. While we expect full-year economic growth for 2017 to come in at the same rate projected in our prior forecast, we now believe that total home sales will be essentially flat this year compared with the moderate rise predicted in the prior forecast. Despite muted underlying inflation, we continue to expect the Fed to raise rates for the third time this year in December.”
Click here to generate more graphs from Dothan’s September Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.