The Lake Martin area saw the number of units for sale increase 6.3 percent from last year to 472 listings. (ACRE)
Sales: Lake Martin area residential sales totaled 72 units during June, up 4.3 percent from 69 sales in the same month a year earlier. Similarly, June sales were up 16.1 percent compared to 62 sales in May. Results were 22 percent above the five-year June average of 59 sales. Two more resources to review: Quarterly Report and the Annual Report.
For all of Lake Martin’s area housing data, click here.
Inventory: Homes listed for sale in the Lake Martin area during June totaled 472 units, an increase of 6.3 percent from June 2017’s 444 units, and an increase of 7 percent from May 2018’s 441 units. Lake Martin experienced a decline in months of supply in June. June months of supply totaled 6.6 months, an increase of 1.9 percent from June 2017’s 6.4 months of supply. However, June’s months of supply decreased from May’s 7.1 months of supply.
Pricing: The Lake Martin area median sales price in June was $221,000, a decrease of 38.6 percent from one year ago and a decrease of 32 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 12.2 percent. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends contacting a local real estate professional for additional market pricing information. The average number of days on the market (DOM) for homes selling in June was 147 days, an increase of 5 percent from 140 days in June 2017 and an increase of 16.7 percent from 126 days in May.
Forecast: June sales matched the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 72 sales for the month, and 72 homes were sold. ACRE forecasts a total of 333 residential sales in the Lake Martin area year-to-date, while there were 320 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.”
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The Lake Martin Residential Monthly Report is developed in conjunction with the Lake Martin Area Association of Realtors to better serve area consumers.