Sales: According to the Dothan Multiple Listing Service Inc., Dothan-area residential sales totaled 111 units during September, an increase in sales of 3.7 percent from the same period last year. Year-to-date home sales through September are up 8.8 percent over last year. Another resource to review is the Annual Report.
For all of Dothan’s area real estate data, click here.
Forecast: Closed transactions in September were 15 units above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s year-to-date sales forecast through September projected 872 closed transactions, while the actual sales were 1,036 units, a favorable difference of 18 percent.
Supply: The Dothan-area housing inventory in September was 1,112 units, a decrease of 8 percent from September 2015. September inventory decreased 1 percent from August. This direction is consistent with historical data indicating that September inventory on average (2011- 2015) decreases from August by 2.4 percent. There were 10 months of housing supply during September (approximately 6 months represents a balanced market during September) vs. 11.3 months of supply during the same period last year, representing a favorable 11.4 percent decrease.
Demand: Residential sales decreased 5.1 percent from August. Historical data (2011-2015) indicate September sales typically decrease 11.3 percent from August.
Pricing: The Dothan-area median sales price during September was $127,500, a 3.4 percent decrease from last September and a 20.3 percent decrease from the prior month. This direction is consistent with historical data, which indicate a decrease of 9 percent in pricing is typically recorded from August to September. Differing sample sizes (number of residential sales of comparative months) can contribute to statistical volatility including pricing. ACRE highly recommends consulting with a local real estate professional to discuss pricing trends, as they will vary from neighborhood to neighborhood.
Industry perspective: “The decline in the HPSI (Home Purchase Sentiment Index) over the past two months from the survey-high in July of 86.5 adds a note of caution to our moderately positive housing outlook,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Downside changes came in particular from the HPSI components mortgage rate direction and good time to buy a house. In addition, the starter home tight supply and rising home prices as well as the unsettled political environment are likely giving many consumers a reason to pause or question their home purchase sentiment.” For the full report, click here.
Click here to generate more graphs from Dothan’s September Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.