Sales: According to the Lee County Association of Realtors Multiple Listing Service, Lee County area residential sales totaled 179 units during August, an increase in sales of 15.5 percent or 24 units above the same period last year. Two more resources to review: Quarterly Report and Annual Report.
Forecast: August sales were 19 units or 12 percent above ACRE’s monthly forecast. ACRE’s year-to-date sales forecast through August projected 1,180 closed transactions, while the actual sales were 1,342 units, a favorable difference of 14 percent.
Supply: The Lee County housing inventory in August was 463 units, a decrease of 29 percent from August 2015 and a 66 percent decrease from the August inventory peak in 2010 (1,385 units). August inventory in Lee County decreased 9.2 percent from July. This direction is on target with historical data indicating that August inventory on average (2011-15) decreases from July by 9.5 percent.
The inventory-to-sales ratio in August was 2.6 months of housing supply. Restated, at the August sales pace, it would take 2.6 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months during August. Lee County was one of Alabama’s most balanced markets in August, especially compared to August 2010’s 16.1 months of supply.
Demand: August residential sales decreased 9.1 percent from July. This direction contrasts with seasonal buying patterns and historical data indicating that August sales on average (2011-15) increase by 17.4 percent from July. Existing single-family home sales account for 61 percent of total sales (up from 58 percent in August 2015), while 28 percent were new home sales (up from 24 percent during August 2015) and 11 percent were condos (down from 18 percent).
Pricing: The Lee County median sales price during August was $215,500, up 18.4 percent from last August. The August median sales price increased 15 percent compared to the July median sales price. This direction contrasts with historical data (2011-15) indicating that the August median sales price on average decreases from the July price by 4.4 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: “Consumers have a fairly optimistic 12-month outlook on housing at the end of the summer home-buying season, supported by increased job confidence and more favorable expectations regarding their personal financial situations compared with this time last year,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “The return to a slight upward trend in the HPSI (Home Purchase Sentiment Index) during the spring and summer is, thus far, in line with our forecast, which calls for 4 percent growth in home sales in 2016 to the best level since 2006 and continued improvement for 2017.” For the full report, click here.
Click here to generate more graphs from the Lee County August Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.