Lee County median home sales price for July up 5 percent compared to last year

The Lee County median home sales price in July was $242,000. (iStock)
Sales: According to the Lee County Association of Realtors Multiple Listing Service, Lee County home sales totaled 185 units during July, down 11.5 percent from 209 sales in the same month a year earlier. Similarly, July sales were down 21.9 percent compared to 237 sales in June. Results were 1 percent above the five-year July average of 183 sales. Two more resources to review: Quarterly Report and Annual Report.
For all Lee County housing data, click here.
Inventory: Homes listed for sale in the Lee County area during July totaled 587 units, an increase of 14.2 percent from July 2017’s 514 units, and an increase of 4.6 percent from June 2018’s 561 units. Lee County experienced a year-over-year increase in months of supply. July months of supply totaled 3.2 months, an increase of 29 percent from July 2017’s 2.5 months of supply. July’s months of supply also increased from June’s 2.4 months of supply.
Pricing: The Lee County median sales price in July was $242,000, an increase of 5.2 percent from one year ago and a decrease of 1.6 percent from the prior month. This direction is consistent with historical data (2013-17) indicating that the July median sales price on average decreases from June by 5.5 percent. 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. The homes selling in July spent an average of 53 days on the market (DOM), an increase of 12.8 percent from 47 days in July 2017, while decreasing 23.2 percent from 69 days in June.
Forecast: July sales were 65 units, or 26 percent, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 250 sales for the month, while actual sales were 185 units. ACRE forecast a total of 1,297 residential sales in the Lee County area year-to-date, while there were 1,356 actual sales through July.
ACRE’s statewide perspective: Residential sales in Alabama continued to grow during the second quarter of 2018. Total residential sales increased 10.4 percent year-over-year from 16,450 to 18,157 closed transactions. Home price appreciation in the state also continues its upward trajectory, as the median sales price during the second quarter increased 4.3 percent year-over-year from $155,278 to $161,975. Mirroring national trends, statewide inventory decreased 9.4 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices during the second quarter. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during the second quarter of 2018 spent an average of 98 days on the market, an improvement of 24 days from 2017.
NAR’s national perspective: During June, nationwide sales volume for existing homes decreased 5 percent year-over-year from 600,000 to 570,000 closed transactions. According to Lawrence Yun, chief economist for the National Association of Realtors, “there continues to be a mismatch since the spring between the growing level of home buyer demand in most of the country in relation to the actual pace of home sales, which are declining. The root cause is without a doubt the severe housing shortage that is not releasing its grip on the nation’s housing market. What is for sale in most areas is going under contract very fast, and in many cases has multiple offers. This dynamic is keeping home price growth elevated, pricing out would-be buyers and ultimately slowing sales.”
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The Lee County Residential Monthly Report is developed in conjunction with the Lee County Association of Realtors to better serve its area consumers.