Sales: According to the Southeast Alabama Multiple Listing Service Inc., Dothan-area residential sales totaled 102 units during January, up 13.3 percent from 90 sales in the same month a year earlier. January sales were down 10.5 percent compared to 114 sales in December. Results were 32.6 percent above the five-year January average of 84 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 January totaled 884 units, a decrease of 15.2 percent from January 2018’s 1,042 units, and a decrease of 1 percent from December 2018’s 893 units. December months of supply totaled 8.7 months, a decrease of 25.1 percent from January 2018’s 11.6 months of supply. January’s months of supply increased 10.6 percent from December’s 7.8 months of supply.
Pricing: The Dothan median sales price in January was $129,500, a decrease of 7.3 percent from one year ago and a decrease of 4.4 percent from the prior month. This direction is consistent with historical data (2014-18) indicating that the January median sales price on average decreases from December by 1.2 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 January spent an average of 150 days on the market (DOM), a decrease of 8 percent from 163 days in January 2018, while increasing 6.4 percent from 141 days in December.
Forecast: January sales were two units, or 1.9 percent, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 104 sales for the month, while actual sales were 102 units. ACRE forecast a total of 1,501 total transactions in Dothan during 2019.
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.”
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The Southeast Alabama Residential Monthly Report was developed in conjunction with the Southeast Alabama Association of Realtors to better serve area consumers.