Sales: There were 52 residential sales in the Lake Martin area during April, down 16.1 percent from 62 sales in the area one year ago. April sales were 11.6 percent above the five-year average of 47 sales. Two more resources to review: Quarterly Report and the Annual Report.
For all of Lake Martin’s area housing data, click here.
Forecast: April sales were eight units or 13.3 percent below the Alabama Center for Real Estate’s monthly forecast. Through April, 186 total residential sales have been recorded, eight below expectations. ACRE’s sales forecast projects a total of 684 sales in the area during 2018; there were 665 actual sales during 2017.
Supply: The Lake Martin area housing inventory in April was 432 listings, a decrease of 0.7 percent from a year earlier. April inventory increased by 5.9 percent from the prior month. This trend is consistent with historical data from 2013-17 indicating that April inventory on average increases from March by 4.3 percent.
Demand: Residential sales decreased by six units or 10.3 percent from the prior month. This trend is consistent with historical data from 2013-17 that indicates April sales on average decrease from March by 3.7 percent. Listings selling in the Lake Martin area during April averaged 95 days on the market before selling. This represents an improvement of 25.2 percent from one year ago, when the average was 127 days.
Seeking balance: The inventory for sale divided by the current monthly sales volume equals the number of months of supply. Most real estate professionals consider the market to be in balance at approximately 6 months of supply. There were 8.3 months of housing supply in March, up from 7 months in March 2018 and in April 2017.
Pricing: The Lake Martin area median sales price in April was $234,500, a decrease of 5.1 percent from one year ago. The current median price in the area is 19.1 percent above the five-year average for April sales. Pricing can and will fluctuate from month to month because of changing composition of actual sales (lakefront vs. non-lakefront) and the sample size of data (closed transactions) being subject to seasonal buying patterns. ACRE recommends contacting a local real estate professional for additional market pricing information.
Industry perspective: Statewide, residential real estate sales continued to show growth during the first quarter of 2018 as they grew 2.4 percent from the first quarter of 2017. Low inventory levels, however, played a large role in driving prices upward. During the first quarter of the year, the statewide median sales price increased 7.1 percent from one year ago. Although good news for sellers, this price growth, combined with rising interest rates, could lead to affordability issues for buyers in today’s markets.
Click here to generate more graphs from the Lake Martin area April Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.