Lee County median home sales price up 15 percent from a year ago

Lee County median home sales price up 15 percent from a year ago
The Lee County median sales price in December was $251,500. (iStock)

Sales: According to the Lee County Association of Realtors Multiple Listing Service, Lee County home sales totaled 134 units during December, down 2.9 percent from 138 sales in the same month a year earlier. December sales were also down 2.2 percent compared to 137 sales in November. Results were 19.9 percent above the five-year December average of 112 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 December totaled 542 units, an increase of 11.8 percent from December 2017’s 485 units, and a decrease of 16.6 percent from November 2018’s 650 units. December months of supply totaled 4 months, an increase of 15.1 percent from December 2017’s 3.5 months of supply. December’s months of supply decreased 14.7 percent from November’s 4.7 months of supply.

Pricing: The Lee County median sales price in December was $251,500, an increase of 14.9 percent from one year ago and a decrease of 4.4 percent from the prior month. This direction is consistent with historical data (2013-17) indicating that the December median sales price on average decreases from November by 1.6 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 December spent an average of 68 days on the market (DOM), a decrease of 10.5 percent from 76 days in December 2017, but an increase of 6.3 percent from 64 days in November.

Forecast: December sales were three units, or 2.2 percent, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 137 sales for the month, while actual sales were 134 units. ACRE forecast a total of 2,035 residential sales in the Lee County area during 2018, while there were 2,104 actual sales.

ACRE’s statewide perspective: After 10 consecutive months of gains, statewide residential sales in December decreased 1.6 percent year-over-year from 4,371 to 4,303 closed transactions. For the entire year, statewide residential sales increased 6.3 percent from 57,427 in 2017 to 61,062 in 2018. Home price appreciation in the state continued to climb as the median sales price in December increased 4.7 percent year-over-year from $151,667 to $158,772. The median sales price for all of 2018 was up 4.6 percent from 2017. Although nationwide inventory levels are trending upwards, Alabama’s residential inventory decreased 6.9 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices throughout 2018. With low inventory, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during December spent an average of 102 days on the market, an improvement of 11 days from 2017.

NAR’s national perspective: During December, total existing-home sales nationwide declined 11.7 percent from approximately 427,000 one year ago to 377,000 currently. Lawrence Yun, chief economist for the National Association of Realtors, says current housing numbers are partially due to higher interest rates during most of 2018. “The housing market is obviously very sensitive to mortgage rates. Softer sales in December reflected consumer search processes and contract signing activity in previous months when mortgage rates were higher than today. Now, with mortgage rates lower, some revival in home sales is expected going into spring.”

 

 

 

 

 

 

 

 

 

Click here to view the entire monthly report.

The Lee County Residential Monthly Report is developed in conjunction with the Lee County Association of Realtors to better serve its area consumers.

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