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

Sales: According the Lee County Association of Realtors Multiple Listing Service, Lee County area residential sales totaled 112 units during October, an increase in sales of 21.7 percent or 20 units above the same period last year. This represents a new sales peak for the month of October and the best October since 113 units were sold in 2006. Year-to-date sales through October are up 19.4 percent from 2014. Two more resources to review: Quarterly Report and Annual Report

Forecast: October sales were 22 units or 24 percent above our monthly forecast. ACRE’s year-to-date sales forecast through October projected 1,205 closed transactions while the actual sales were 1,442 units, a rise of 19.6 percent.

Sales in Lee County are 21.7 percent higher in 2015 than they were during October 2014.

Supply: The Lee County housing inventory in October was 649 units, a decrease of 19.7 percent from October 2014 and a 52.5 percent decrease from the month of October inventory peak in 2010 (1,367units). October inventory in Lee County also decreased 0.5 percent from the prior month. This direction contrasts with historical data indicating that October inventory on average (2010-14) increases from the month of September by 4 percent.

The inventory-to-sales ratio in October was 5.8 months of housing supply. Restated, at the October sales pace, it would take 5.8 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 October. 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: October residential sales decreased 10.4 percent from the prior month. This direction is consistent with seasonal buying patterns and historical data indicating that October sales on average (2010-14) decrease by 14.6 percent from the month of September. Existing single family home sales account for 62 percent (up from 54 percent in October 2014) of total sales while 29 percent (down from 32 percent in October 2014) were new home sales and 9 percent (down from 14 percent in October 2014) were condo buyers.

Pricing: The Lee County median sales price in October was $196,750, a 3.6 percent increase from last October. The October median sales price decreased 8.5 percent compared to the prior month. This direction contrasts with historical data (2010-14) indicating that the October median sales price on average increases from the month of September by 1.9 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: “Despite recent headwinds, which likely will slow economic growth compared to the first half of 2015, we see positive trends for consumer spending and housing heading into the fourth quarter,” said Fannie Mae Chief Economist Doug Duncan. “Strong home price gains should help drive an increase in household net worth again in the third quarter and, combined with low gasoline prices and mortgage rates, should support strong consumer spending throughout the rest of the year.” To read the full report, click here. 

The average sales price in Lee county during October rose 6 percent compared to last year.

Homes spent an average of 212 days on the market during October in Lee County, an increase of 6.5 percent over last year.

Inventory has been on a steady decline since it’s 2010 peak, declining to 649 this October.

The median sales price has been escalating over the past four years during October, hitting $196,750 in 2015.

Lee County continues to be one of Alabama’s most balanced markets during October at 5.8 months of supply.

Year-to-date sales are up 19 percent during October in Lee County.

Sales jumped from 92 last October to 112 in 2015 in Lee County.

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.