Dothan October home sales up 23 percent from a year ago

Dothan October home sales up 23 percent from a year ago
For 2017 so far, home sales are up 10.1 percent from the same period in 2016. (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 October, up 23.2 percent from the same month last year. For 2017 so far, sales are up 10.1 percent from the same period in 2016. Another resource to review is the Annual Report.

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

Forecast: Closed transactions in October were 12 units or 11.4 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s 2017 sales forecast through October projected 1,054 closed transactions, while the actual sales were 1,151 units, a favorable difference of 9.2 percent.

Supply: The Dothan-area housing inventory in October was 1,082 units, a decrease of 3 percent from October 2016. October inventory was 0.4 percent above September inventory. Historical data indicate that October inventory on average (2012-16) decreases from September by 0.6 percent. There were 9.2 months of housing supply during October (approximately 6 months represents a balanced market) vs. 11.7 months of supply during the same period the previous year.

Demand: Residential sales were equal to the sales from September at 117. Historical data (2012-2016) indicate October sales typically increase 1.6 percent from September.

Pricing: The Dothan-area median sales price during October was $126,900, a 13.1 percent decrease from October 2016 and a 15.4 percent decrease from the prior month. Historical data indicate an increase of 12.4 percent in pricing is typically recorded from September to October. 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 first print of third-quarter economic growth showed surprising resiliency. The expected economic hit from the recent natural disasters either failed to materialize or was drowned out by business optimism,” said Fannie Mae Chief Economist Doug Duncan. “Recent data showed a stronger pickup in domestic demand than anticipated, leading us to increase our growth forecast for the final quarter of this year and coming quarters. We also revised higher our 2018 growth forecast to 2 percent. Tax cuts, if enacted, present upside risk to our growth forecast for next year but could also lead to more aggressive Fed action. Housing still remains a drag on the economy, as shortages of labor and available lots, coupled with rising building material prices, further complicate existing inventory, affordability and sales challenges.”

Click here to generate more graphs from Dothan’s October 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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