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

Sales: According to the Lee County Association of Realtors Multiple Listing Service, Lee County area residential sales totaled 124 units during December, an increase of 15 percent or 16 units above the same month in 2015. Sales for the year through December increased 11 percent from 2015. 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.

Home sales in Lee County during December rose 15 percent over December 2015.

Forecast: December sales were 18 units or 17 percent above ACRE’s monthly forecast. ACRE’s 2016 sales forecast through December projected 1,595 closed transactions, while the actual sales were 1,823 units, a favorable difference of 14 percent.

Supply: The Lee County housing inventory in December was 423 units, a decrease of 28 percent from December 2015 and a 66 percent decrease from the December inventory peak in 2010 (1,248 units). December inventory in Lee County decreased 3 percent from November. This direction is consistent with historical data indicating that December inventory on average (2011-15) decreases from November by 9.3 percent.

The inventory-to-sales ratio in December was 3.4 months of housing supply. Restated, at the December sales pace, it would take 3.4 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months during December. Lee County was one of Alabama’s most balanced markets in December, especially compared to December 2010’s 18.6 months of supply.

Demand: December residential sales increased 2.5 percent from November. This direction is consistent with seasonal buying patterns and historical data indicating that December sales on average (2011-15) increase by 24 percent from November.

Pricing: The Lee County median sales price during December was $210,000, up 11 percent from December 2015. The December median sales price was down 6.7 percent compared to the November median sales price. Historical data (2011-15) indicate that the December median sales price on average increases from the November price by 8.7 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: “The tenor of our forecast effectively remains unchanged: signs of cautious consumers this quarter, rising interest rates, the renewed increase in the U.S. dollar to a 14-year high, and heightened uncertainty in the political sphere suggest conservatism in our outlook,” said Fannie Mae Chief Economist Doug Duncan. “While we are encouraged that confidence is rising across investors, consumers, businesses, economists and homebuilders, much of it appears to be in anticipation that the forthcoming Administration and the new Congress will enact fiscal policies and deregulation that will help spur growth. While we believe that some pro-growth policies could be adopted next year, it would take time for them to benefit the economy, barring any offsetting initiatives such as more restrictive trade policies.”

Click here to generate more graphs from the Lee County December Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply. 

The Lee County Residential Monthly Report is developed in conjunction with the Lee County Association of Realtors to better serve Opelika/Auburn consumers.