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

Sales: According the Lee County Association of Realtors Multiple Listing Service, Lee County area residential sales totaled 125 units in September, an increase in sales of 16.8 percent or 18 units above the same period last year. This represents a new sales peak for the month of September and the best September since 113 units were sold in 2005. Year-to-date sales through September are up 19.2 percent from 2014. Two more resources to review market: Quarterly Report and Annual Report

Forecast: September sales were 28 units or 28 percent above our monthly forecast. ACRE’s year-to-date sales forecast through September projected 1,115 closed transactions while the actual sales were 1,330 units, a rise of 19.2 percent.

Sales in Lee County hit 125 units in September, the best September since 2005 (113). Sales did dip 19 percent from August which is consistent with the five-year historical pattern.

Supply: The Lee County housing inventory in September was 652 units, a decrease of 18.5 percent from September 2014 but an increase of 50.4 percent from the month of September inventory peak in 2010 (1,315units). September inventory in Lee County also decreased 0.6 percent from the prior month. This direction is consistent with historical data indicating that September inventory on average (2010-14) decreases from the month of August by 4.6 percent.

The inventory-to-sales ratio in September was 5.2 months of housing supply. Restated, at the September sales pace, it would take 5.2 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6.0 months (non-seasonally adjusted) during the month of September . While Lee County had been one of Alabama’s most balanced markets where buyer and seller have equal bargaining power, the pendulum appears to have swung toward the seller at this time.

Demand: September residential sales decreased 19.4 percent from the prior month. This direction is consistent with seasonal buying patterns and historical data indicating that September sales on average (2010-14) decrease by 9.7 percent from the month of August. Existing single family home sales account for 63 percent (down from 64 percent in September 2014) of total sales while 26 percent (up from 24 percent in September 2014) were new home sales and 11 percent (down from 12 percent in September 2014) were condo buyers.

Pricing: The Lee County median sales price in September was $215,000, a 19.4 percent increase from last September . The September median sales price rose 18.1 percent compared to the prior month. This direction is consistent with historical data (2010-14) indicating that the September median sales price on average increases from the month of August by 2.5 percent. Pricing can fluctuate from month-to-month as the sample size of data (closed transactions) is subject to seasonal buying patterns so a broader lens as to pricing trends is appropriate and we recommend contacting a local real estate professional to discuss the latest pricing trends with experts with boots on the ground.

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.

The average sales price in Lee County during September hit rock bottom in 2011 at $150,000, but it has been on the rise ever since, hitting $218,346 in September.

Days on the market dropped to 155, a 15.3 percent dip from last September in Lee County.

Inventory is also dropping in Lee County, 50 percent below the 2010 peak of 1,315 now at 652.

The median sales price in September for Lee County is also on the rise, hitting $215,000 last month.

Months of supply in Lee County for September (5.2) make it one of the state’s most balanced markets.

Sales were 44 percent above the five-year average of 87 for September in Lee County.

Lee County total sales were 19 percent below August but 16.8 percent above last September.

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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 Lee County Residential Monthly Report is work product developed in conjunction with the Lee County Association of Realtors to better serve Opelika/Auburn consumers. The ACRE monthly report is provided to illustrate the “general” market direction & trends when comparing prior periods with the most current available data. Real estate is local and statistics will fluctuate between areas within a city including subdivisions. 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.