Dothan area sees substantial increase in June home sales

Dothan area sees substantial increase in June home sales
The Dothan area's median sales price increased 11.1 percent from last year to $150,000. (file)

Sales: According to the Dothan Multiple Listing Service Inc., Dothan area residential sales totaled 169 units during June, up 44.4 percent from 117 sales in the same month a year earlier. Similarly, June sales were up 24.3 percent compared to 136 sales in May. Results were 32.6 percent above the five-year June average of 110 sales. Another resource to review is the Annual Report.

For all of Dothan’s area real estate data, click here.

Inventory: Total homes listed for sale in the Dothan area for the month of June totaled 1,118 units, an increase of .1 percent from June 2017’s 1,117 units, and a decrease of 2 percent from May 2018’s 1,141 units. Dothan also experienced a decline in months of supply in June. June months of supply totaled 6.6 months, a decrease of 30.7 percent from June 2017’s 9.5 months of supply. June’s months of supply also significantly decreased from May’s 8.4 months of supply.

Pricing: The Dothan median sales price in June was $150,000, an increase of 11.1 percent from one year ago and a decrease of 4.5 percent from the prior month. This direction is inconsistent with historical data (2013-17) indicating that the June median sales price on average increases from May by 13.6 percent. The homes selling in June spent an average of 129 days on the market (DOM), a decrease of 21.3 percent from 164 days in June 2017, while also decreasing 8.5 percent from 141 days in May. The differing sample size (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.

Forecast: June sales were 31 units, or 22.5 percent, above Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 138 sales for the month, while actual sales were 169 units. ACRE forecasts a total of 712 residential sales in the Dothan area year-to-date, while there were 754 actual sales through June.

ACRE’s statewide perspective: Alabama and the United States are getting ready for the summer months of real estate. Coming into summer, the spring home-buying season had been significantly affected by very low inventory levels. May residential listings decreased more than 7 percent in the state and decreased 6.1 percent nationwide from one year ago. Residential sales in Alabama, however, increased 8 percent from one year ago, which is impressive considering the 7.3 percent drop in inventory. Home price appreciation heated up with the temperatures as the statewide median sales price increased 10.7 percent from one year ago, while also increasing 7 percent during the first quarter of the year. Home sales prices are expected to continue their upward climb throughout the summer as inventory levels are likely to repeat the declines that were seen during the spring.

NAR’s national perspective: Lawrence Yun, National Association of Realtors chief economist, says a solid economy and job market should be generating a much stronger sales pace than what has been seen so far this year. “Closings were down in a majority of the country last month and declined on an annual basis in each major region,” he said. “Incredibly low supply continues to be the primary impediment to more sales, but there’s no question the combination of higher prices and mortgage rates are pinching the budgets of prospective buyers, and ultimately keeping some from reaching the market.”

 

 

 

 

 

 

 

 

 

 

 

 

Click here to view the entire monthly report.

The Dothan Residential Monthly Report was developed in conjunction with the Dothan Association of Realtors to better serve area consumers.

 

 

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