Sales: According to the Southeast Alabama Multiple Listing Service Inc., Dothan-area residential sales totaled 171 units during April, up 17.9 percent from 145 sales in the same month a year earlier. April sales were up 21.3 percent compared to 141 sales in March. Results were 47.9 percent above the five-year April average of 116 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 April totaled 798 units, a decrease of 27.9 percent from April 2018’s 1,107 units, and an increase of 0.5 percent from March 2019’s 794 units. April months of supply totaled 4.7 months, a decrease of 38.9 percent from April 2018’s 7.6 months of supply. April months of supply decreased 17.1 percent from March’s 6.5 months of supply.
Pricing: The Dothan median sales price in April was $152,700, an increase of 9.1 percent from one year ago and a decrease of 0.2 percent from the prior month. This direction is inconsistent with historical data (2014-18) indicating that the April median sales price on average increases from March by 16.7 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 April spent an average of 144 days on the market (DOM), an increase of 1.4 percent from 142 days in April 2018, while decreasing 3.2 percent from 149 days in March.
Forecast: April sales were 46 units, or 36.8 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 125 sales for the month, while actual sales were 171 units. ACRE forecast a total of 462 total transactions in Dothan year-to-date, while there were 538 actual sales through April.
ACRE’s statewide perspective: While nationwide residential sales dropped 8 percent in March, demand for housing in Alabama remained strong. Statewide residential sales increased slightly (0.02 percent) from 5,341 closed transactions in March 2018 to 5,342 in March 2019. Year-to-date, sales increased 3.6 percent from 2018. Home price appreciation in the state continued to climb but at a slower pace as the median sales price in March increased 2.6 percent year-over-year from $158,617 to $162,759. The statewide median sales price is also up 3.6 percent year-to-date. Although nationwide inventory levels are trending upward, Alabama’s residential listings decreased 11.3 percent from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and in the spring buying season 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 March spent an average of 99 days on the market, an improvement of 19 days from March 2018.
NAR’s national perspective: During March, total existing-home sales nationwide declined 7.8 percent from approximately 434,000 closed transactions one year ago to 400,000 currently. The nationwide median existing-home price increased 3.8 percent in March, marking 85 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “It is not surprising to see a retreat after a powerful surge in sales in the prior month. Still, current sales activity is underperforming in relation to the strength in the jobs markets. The impact of lower mortgage rates has not yet been fully realized.”
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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.