Sales: According to the Southeast Alabama Multiple Listing Service Inc., Dothan-area residential sales totaled 102 units during November, down 9.7 percent from 113 sales in the same month a year earlier. November sales were also down 22.7 percent compared to 132 sales in October. Results were 32.6 percent above the five-year November average of 83 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 November totaled 976 units, a decrease of 10.2 percent from November 2017’s 1,087 units, and a decrease of 2.8 percent from October 2018’s 1,004 units. November months of supply totaled 9.6 months, a decrease of 0.5 percent from November 2017’s months of supply. November’s months of supply increased from October’s 7.6 months of supply.
Pricing: The Dothan median sales price in November was $145,250, a decrease of 1.5 percent from one year ago and a decrease of 8.1 percent from the prior month. This direction is consistent with historical data (2013-17) indicating that the November median sales price on average decreases from October by 6.7 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 November spent an average of 137 days on the market (DOM), a decrease of 22.6 percent from 177 days in November 2017, while increasing 8.7 percent from 126 days in October.
Forecast: November sales were one unit, or 0.9 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 101 sales for the month, while actual sales were 102 units. ACRE forecast a total of 1,328 residential sales in the Dothan area year-to-date, while there were 1,389 actual sales through November.
ACRE’s statewide perspective: While nationwide sales declined 2.6 percent during October, residential sales in Alabama continued to grow during the fall of 2018. Total residential sales in Alabama increased 9.1 percent year-over-year from 4,473 to 4,880 closed transactions. Year-to-date through October, statewide residential sales are up 7 percent from 48,745 one year ago to 52,163 currently. Home price appreciation in the state continued to grow as the median sales price in October increased 7.1 percent year-over-year from $146,458 to $156,872. The year-to-date median sales price is up 4.8 percent from 2017. Although nationwide inventory levels increased 2.8 percent in October, Alabama’s residential inventory decreased 9.2 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices throughout 2018. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during October spent an average of 98 days on the market, an improvement of 15 days from 2017.
NAR’s national perspective: During October, nationwide inventory for existing homes increased 2.8 percent year-over-year from 1.8 million to 1.85 million residential listings. According to Lawrence Yun, chief economist for the National Association of Realtors, “As more inventory enters the market and we head into the winter season, home price growth has begun to slow more meaningfully. This allows for much more manageable, less frenzied buying conditions.”
Click here to view the entire monthly report.
The Southeast Alabama Residential Monthly Report was developed in conjunction with the Southeast Alabama Association of Realtors to better serve area consumers.