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 86 units during January, an increase in sales growth of 13.2 percent from the same period last year. Two more resources to review: Quarterly Report and Annual Report.

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

Sales for January in Dothan totaled 86 units in 2016.

Forecast: Closed transactions in January were 15 units above our monthly forecast. ACRE’s year-to-date sales forecast through January projected 71 closed transactions while the actual sales were 86 units, a favorable difference of 21 percent.

Supply: The Dothan area housing inventory in January was 1,108 units, a decrease of 7.9 percent from January 2015. December inventory rose 1.5 percent from the prior month. This direction is consistent with historical data indicating that January inventory on average (2011- 2015) increases from December by 5.2 percent. There were 12.9 months of housing supply in January (approximately 6 months represents balanced market during January NSA) versus 15.8 months of supply during the same period last year, representing a favorable 18.6 percent decline.

Demand: Residential sales increased 11.7 percent from the prior month. Historical data (2011-2015) indicates January sales typically decrease 4.5 percent from the month of December.

Pricing: The Dothan area median sales price in January was $118,500, a 23.5 percent decrease from last January and a 13.8 percent decrease from the prior month. This direction is consistent with historical data which indicates a decrease of 0.2 percent in pricing is typically recorded from December to January. It should also be noted that differing sample size (number 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: “Housing affordability is being constrained because the pace of growth in real income has not kept up with gains in real home prices as demand has grown faster than supply,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “On the bright side, consumers have been increasingly positive about their ability to get a mortgage, suggesting that credit tightness is not the main issue limiting housing market activity today, a feeling that we also see conveyed by lenders in our Mortgage Lender Sentiment Survey^®. We expect further progress in the HPSI to be limited until income growth picks up or supply, particularly in lower-priced homes, expands more rapidly.” For more information, click here.

The average sales price for homes sold in Dothan during January was $150,367.

On average, homes sold in Dothan during the month of January spent 155 days on the market.

Inventory declined in Dothan for the month of January.

The Dothan median sales price during January was $118,500.

There was 12.9 months of supply on the market in Dothan during January, a drop from the previous year.

Sales in January were up 36 units from the all-time January low in 2009.

Sales were nine units above December’s 77 homes sold.

The Dothan Residential Monthly Report work product developed in conjunction with the Dothan Association of Realtors to better serve West Alabama consumers.