Sales: According to the Southeast Alabama Multiple Listing Service Inc., Dothan-area residential sales totaled 148 units during May, up 8.8% from 136 sales in the same month a year earlier. May sales were down 13.5% compared to 171 sales in April. Results were 21.7% above the five-year May average of 122 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 May totaled 830 units, a decrease of 27.3% from May 2018’s 1,141 units, and an increase of 4% from April 2019’s 798 units. May months of supply totaled 5.6 months, a decrease of 33.2% from May 2018’s 8.4 months of supply. May months of supply increased 20.2% from April’s 4.7 months of supply.
Pricing: The Dothan median sales price in May was $164,450, an increase of 4.7% from one year ago and an increase of 7.7% from the prior month. This direction is inconsistent with historical data (2014-18) indicating that the May median sales price on average decreases from April by 7.8%. 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 May spent an average of 115 days on the market (DOM), a decrease of 18.4% from 141 days in May 2018, while decreasing 20.1% from 144 days in April.
Forecast: May sales were five units, or 3.5%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 143 sales for the month, while actual sales were 148 units. ACRE forecast a total of 605 total transactions in Dothan year-to-date, while there were 686 actual sales through May.
ACRE’s statewide perspective: While nationwide residential sales dropped 1% in April, demand for housing in Alabama remained strong. Statewide residential sales increased 4.4% from 5,574 closed transactions in April 2018 to 5,820 in April 2019. Year-to-date, sales increased 3.8% from 2018. Home price appreciation in the state continued to climb as the median sales price in April increased 3.2% year-over-year from $155,250 to $160,283. The statewide median sales price is also up 3.2% year-to-date. Although nationwide inventory levels are trending upward, Alabama’s residential listings decreased 10.7% 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 April spent an average of 93 days on the market, an improvement of three days from April 2018.
NAR’s national perspective: During April, total existing-home sales nationwide declined 1.1% from approximately 460,000 closed transactions one year ago to 455,000 currently. The nationwide median existing-home price increased 3.6% in April, marking 86 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “First, we are seeing historically low mortgage rates combined with a pent-up demand to buy, so buyers will look to take advantage of these conditions. Also, job creation is improving, causing wage growth to align with home price growth, which helps affordability and will help spur more home sales.”
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.