Sales: According to the Dothan Multiple Listing Service Inc., Dothan-area residential sales totaled 128 units during September, up 9.4 percent from 117 sales in the same month a year earlier. September sales were down 4.5 percent compared to 134 sales in August. Results were 32.6 percent above the five-year September average of 103 sales. Another resource to review is the Annual Report.
For all of Dothan’s area real estate data, click here.
Inventory: Homes listed for sale in the Dothan area during September totaled 1,028 units, a decrease of 4.6 percent from September 2017’s 1,078 units, and a decrease of 1.9 percent from August 2018’s 1,048 units. September months of supply totaled 8 months, a decrease of 12.8 percent from September 2017’s 9.2 months of supply. However, September’s months of supply slightly increased from August’s 7.8 months of supply.
Pricing: The Dothan median sales price in September was $156,465, an increase of 4.3 percent from one year ago and an increase of 12.8 percent from the prior month. This direction is inconsistent with historical data (2013-17) indicating that the September median sales price on average decreases from August by 9 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 September spent an average of 121 days on the market (DOM), a decrease of 29.2 percent from 171 days in September 2017, while also decreasing .8 percent from 122 days in August.
Forecast: September sales were six units, or 4.9 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 122 sales for the month, while actual sales were 128 units. ACRE forecast a total of 1,104 residential sales in the Dothan area year-to-date, while there were 1,155 actual sales through September.
ACRE’s statewide perspective: Residential sales in Alabama continued to grow during the late summer of 2018. Total residential sales during August increased 3.5 percent year-over-year from 5,664 to 5,862 closed transactions. Year-to-date through August, statewide residential sales are up 6.6 percent from 39,594 one year ago to 42,209. Home price appreciation in the state also continues its upward trajectory. The median sales price in August increased 2.9 percent from $158,059 to $162,711, while the year-to-date median sales price is up 4.9 percent from 2017. Although nationwide inventory levels are starting to stabilize, Alabama’s residential inventory decreased 11.4 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices during August. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during August spent an average of 95 days on the market, an improvement of 22 days from 2017.
NAR’s national perspective: During August, nationwide sales volume for existing homes increased 0.7 percent year-over-year from 535,000 to 539,000 closed transactions. According to Lawrence Yun, chief economist for the National Association of Realtors, “Strong gains in the Northeast and a moderate uptick in the Midwest helped to balance out any losses in the South and West, halting months of downward momentum. With inventory stabilizing and modestly rising, buyers appear ready to step back into the market.”
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The Dothan Residential Monthly Report was developed in conjunction with the Southeast Alabama Association of Realtors to better serve area consumers.