Sales: According to the Southeast Alabama Multiple Listing Service Inc., Dothan-area residential sales totaled 124 units during February, up 44.2 percent from 86 sales in the same month a year earlier. February sales were up 21.6 percent compared to 102 sales in January. Results were 52.3 percent above the five-year February average of 81 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 February totaled 811 units, a decrease of 22.2 percent from February 2018’s 1,042 units, and a decrease of 8.3 percent from January 2018’s 884 units. February months of supply totaled 6.5 months, a decrease of 46 percent from February 2018’s 12.1 months of supply. February’s months of supply decreased 24.5 percent from January’s 8.7 months of supply.
Pricing: The Dothan median sales price in February was $150,000, a decrease of 2.8 percent from one year ago and an increase of 15.8 percent from the prior month. This direction is inconsistent with historical data (2014-18) indicating that the February median sales price on average decreases from January by 1.8 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 February spent an average of 154 days on the market (DOM), a decrease of 6.1 percent from 164 days in February 2018, while increasing 2.7 percent from 150 days in January.
Forecast: February sales were 23 units, or 22.8 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 101 sales for the month, while actual sales were 124 units. ACRE forecast a total of 205 total transactions in Dothan year-to-date, while there are 226 actual sales through February.
ACRE’s statewide perspective: Statewide residential sales in February increased 10.9 percent year-over-year from 3,807 to 4,222 closed transactions. Year-to-date sales increased 6.4 percent from 2018. Home price appreciation in the state continued to climb, but at a slower pace, as the median sales price in February increased 3 percent year-over-year from $152,771 to $157,319. The statewide median sales price is also up 4.2 percent year-to-date. Although nationwide inventory levels are trending upward, Alabama’s residential listings decreased 8.9 percent from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and in the early months of 2019. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during February spent an average of 99 days on the market, an improvement of 27 days from February 2018.
NAR’s national perspective: During February, total existing-home sales nationwide declined 2.2 percent from approximately 319,000 closed transactions one year ago to 312,000 currently. The nationwide median existing-home price increased 3.6 percent in February, marking 84 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “It is very welcoming to see more inventory showing up in the market. For sustained growth, significant construction of moderately priced homes is still needed. More construction will help boost local economies and more home sales will help lessen wealth inequality as more households can enjoy in housing wealth gains.”
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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.