Lee County year-to-date home sales through May up 9 percent over same period in 2015
Lee County's residential market is among the most balanced in the state right now as far as equilibrium between buyers and sellers. (iStock)
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Sales: According the Lee County Association of Realtors Multiple Listing Service, Lee County area residential sales totaled 227 units during May, an increase in sales of 12 percent or 24 units above the same period last year. Two more resources to review: Quarterly Report and Annual Report.
Click here for all of the Alabama Center for Real Estate’s Lee County residential data.
Year-to-date home sales in Lee County during May rose 9.1 percent over last year.
Forecast: May sales were 52 units or 29 percent above ACRE’s monthly forecast. ACRE’s year-to-date sales forecast through May projected 629 closed transactions, while the actual sales were 745 units, a favorable difference of 18 percent.
Supply: The Lee County housing inventory in May was 522 units, a decrease of 32 percent from May 2015 and a 65.6 percent decrease from the May inventory peak in 2010 (1,516 units). May inventory in Lee County decreased 0.8 percent from April. This direction is consistent with historical data indicating that May inventory on average (2011-15) decreases from April by 11.5 percent.
The inventory-to-sales ratio in May was 2.3 months of housing supply. Restated, at the May sales pace, it would take 2.3 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months during May. Lee County was one of Alabama’s most balanced markets during May, especially compared to May 2009’s 13.6 months of supply.
Demand: May residential sales increased 43.7 percent from April. This direction is consistent with seasonal buying patterns and historical data indicating that May sales on average (2011-15) increase by 35.5 percent from April. Existing single-family home sales account for 59 percent of total sales (up from 58 percent in May 2015), while 23 percent were new home sales (up from 20 percent during May 2015) and 16 percent were condo buyers (down from 21 percent).
Pricing: The Lee County median sales price during May was $205,000, up 14.5 percent from last May. The May median sales price increased 11.4 percent compared to the April median sales price. This direction is consistent with historical data (2011-15) indicating that the May median sales price on average increases from the April price by 1.1 percent. Pricing can fluctuate from month to month as the sample size of data (closed transactions) is subject to seasonal buying patterns. ACRE recommends contacting a local real estate professional to discuss the latest pricing trends.
Industry perspective: “Continued home price appreciation has been squeezing housing affordability, driving a two-year downward trend in the share of consumers who think it’s a good time to buy a home,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “The current low mortgage rate environment has helped ease this pressure, and fewer than half of consumers expect rates to go up in the next year. While the May increase in income growth perceptions could provide further support to prospective home buyers as the spring/summer home-buying season gains momentum, the effect may be muted by May’s discouraging jobs report.” For the full report on home purchase sentiment, click here.
The Lee County Residential Monthly Report is developed in conjunction with the Lee County Association of Realtors to better serve Opelika/Auburn consumers.
