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 residential sales totaled 201 units during March, an increase of 29 units or 16.9 percent from the same month in 2017. Existing single-family homes accounted for 49 percent of all residential sales for the month, while condos were 25 percent and new construction represented the remaining 26 percent. 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.

Forecast: March sales in Lee County were 23 units or 12.9 percent above ACRE’s monthly forecast. ACRE projected 178 closed transactions for the month, while there were 201 actual closed sales. ACRE forecasts a total of 2,035 sales for the area during 2018. There were 1,867 actual sales in Lee County during 2017.

Supply: The Lee County housing inventory in March was 525 units, an increase of 0.2 percent from March 2017 and a 63.9 percent decrease from the 10-year February inventory peak in 2011 (1,455 units). March inventory in Lee County increased 1.7 percent from the previous month.

Demand: March residential sales increased 34.9 percent from February. This direction is consistent with historical data indicating that March sales on average (2013-17) increase 8 percent from February. Homes selling in March averaged 64 days on the market, a decrease of 4.5 percent from last year. The five-year days-on-the-market (DOM) average for Lee County during March is 142 days.

Seeking balance: The inventory for sale divided by the current monthly sales volume equals the number of months of supply. The market is considered to be in balance at approximately 6 months. The inventory-to-sales ratio in March was 2.6 months of housing supply, down from 3.5 months of supply in February and down from 3 months of supply one year ago.

Pricing: The Lee County median sales price during March was $215,000, down 8.5 percent from one year ago. The March median sales price showed no change from the previous month. This is inconsistent with historical data (2013-17) indicating that the March median sales price on average decreases from the February price by 42.5 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: Interest rates are likely to increase throughout 2018. The Federal Reserve’s Federal Open Market Committee (FOMC) met on March 21 and approved a quarter-point rate hike. As of April 5, the 10-Year Treasury stood at 2.83 percent, down slightly from 2.88 percent one month ago. Although daily yield curve rates have decreased slightly in the past month, many analysts are projecting that the 10-year Treasury will pass 3 percent in the months to come. According to Wells Fargo, the current interest rate on a 30-year fixed-rate mortgage is 4.58 percent (annual percentage rate).

As the overall economy continues to expand, it is not surprising to see growth in Alabama’s residential new construction market. February sales of newly constructed homes grew 22 percent month-over-month and 14 percent year-over-year. Statewide*, there were 507 new construction sales in February, up from 416 total sales in January and up from 445 total sales in February 2017. Year-to-date, new construction sales are up 6 percent from 2017.

February new construction sales in select Alabama markets

• Baldwin County – 100
• Birmingham Metro Area – 125
• Huntsville Metro Area – 112
• Lee County – 36
• Mobile Metro Area – 17
• Montgomery Metro Area – 35
• Tuscaloosa County – 15

New construction building permits and housing starts data are indicators of larger economic conditions. Generally speaking, the housing market is one of the first sectors to expand or contract during times of growth or decline. According to the U.S. Census Bureau, 1,225 building permits for new construction were issued in Alabama during February. Building permits increased 1.1 percent from January, when 1,212 permits were issued, and increased 10.1 percent from February 2017, when 1,113 permits were issued. ACRE projected 1,219 housing starts in Alabama during February. Housing starts decreased 2.9 percent from January (1,256) and increased 13 percent from February 2017 (1,079). Year-over-year increases in both building permits and projected housing starts are encouraging news, as they hint toward continued overall economic growth during the second quarter of 2018.

*ACRE receives new construction sales data from the following counties/areas: Baldwin County, Birmingham Metro Area, Calhoun County, Huntsville Metro Area, Lee County, Mobile Metro Area, Montgomery Metro Area, Tuscaloosa County and the Wiregrass Region. Combined, these counties/areas represent +/- 70 percent of Alabama’s total population.

Click here to generate more graphs from the Lee County March 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.