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

Sales: According to the Dothan Multiple Listing Service, Inc., Dothan area residential sales totaled 107 units in September, an increase in sales growth of 27.4 percent from the same period last year. Year-to-date sales through September are up 22 percent from 2014. Two more resources to review market: Quarterly Report and Annual Report

Forecast: Closed transactions in September were 15 units or 16 percent above our monthly forecast. ACRE’s year-to-date sales forecast through September projected 832 closed transactions while the actual sales were 952 units, a favorable cumulative variance of 14.4 percent.

Dothan area residential sales increased 27.4 percent from September 2014. Inventory is up 2% from last September. Infograph courtesy of ACRE. All rights reserved.

Supply: The Dothan area housing inventory in September was 1,210 units, an increase of 2 percent from September 2014. September inventory slipped 1.8 percent from the prior month. This direction is consistent with historical data indicating that September inventory on average (’10-’14) decreases from the month of August by 2.2 percent. There were 11.3 months of housing supply in August  (6.0+/- months represents balanced market during August NSA) versus 14.1 months of supply during the same period last year representing a favorable variance of 12.9 percent.

Demand: Residential sales decreased 13 percent from the prior month. While historical data suggests home sales typically decrease (’10-’14) from August to September, this is slightly higher than the 9.0 percent projected dip.

Pricing: The Dothan area median sales price in September was $132,000, a 14.5 percent increase from last September but a 3.3 percent decrease from the prior month. This direction is consistent with historical data but shy of the 10.7 percent decrease typically recorded between ’10-’14. It should also be noted that differing sample size (# of residential sales of comparative months) can contribute to statistical volatility including pricing. The Center highly recommends consulting with a local real estate professional to discuss pricing trends as it can and will vary from neighborhood to neighborhood.

Industry Perspective: “Our forecast for the year is largely unchanged despite recent market volatility. Fundamentals are positive, suggesting potential for some improvement in the fourth quarter,” said Fannie Mae Chief Economist Doug Duncan. “While core personal consumption expenditures experienced their weakest gain in more than four years in July, real consumer spending rebounded during the month and August auto sales were stronger than they have been in a decade. Consumers may get an added boost during the year from subdued inflation given the stronger dollar and low oil prices. Overall, we anticipate economic growth of 2.4 percent for 2015, up slightly from 2.1 percent in the prior forecast. Consumer and government spending as well as nonresidential and residential investment are expected to contribute to growth while net exports and inventory investment will likely pose headwinds.” For full report click HERE.

Click on infographics below to view gallery.

Months of supply not ideal but still going down compared to the past few September months.

Total sales for Dothan at 107 for the month of September.

Inventory remains below sales for the month of September.

Inventory has remained relatively flat over the month September for the past five years.

The average sales price is still well below its September peak from 2005.

The number of days on the market for houses went down slightly from last September.

The median sales price for homes in Dothan was considerably better than September 2014.

Bryan Davis is the Research/Media Coordinator for the Alabama Center for Real Estate housed within the Culverhouse College of Commerce at the University of Alabama. He can be reached at 205-348-5416 or at bkdavis@culverhouse.ua.edu.

The Dothan Residential Monthly Report work product developed in conjunction with the Dothan Association of REALTORS to better serve West Alabama consumers. The ACRE monthly report is provided to illustrate the “general” market direction & trends when comparing prior periods with the most current residential data available. Real estate is local and statistics will fluctuate between areas within a city including subdivisions, and ACRE recommends that you consult a local real estate professional for “specific” advice associated with your market. The Alabama Center for Real Estate‘s core purpose is to advance the real estate industry in Alabama by providing relevant resources in the areas of research, education and outreach. Join the Center mailing list HERE.

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