Sales: Lake Martin area residential sales totaled 86 units during May, up 38.7% from 62 sales in the same month a year earlier. May sales were up 7.5% compared to 80 sales in April. Results were 53% above the five-year May average of 56 sales. Two more resources to review: Quarterly Report and the Annual Report.
For all of Lake Martin’s area housing data, click here.
Inventory: Homes listed for sale in the Lake Martin area during May totaled 572 units, an increase of 29.7% from May 2018’s 441 units, and an increase of 0.5% from April 2019’s 569 units. May months of supply totaled 6.7 months, a decrease of 6.5% from May 2018’s 7.1 months of supply. May months of supply decreased 6.5% from April’s 7.1 months of supply.
Pricing: The Lake Martin area median sales price in May was $238,500, a decrease of 26.6% from one year ago and an increase of 27.6% from April’s median sales price of $186,875. Historical data (2014-18) indicates that the May median sales price on average increases from April by 22.4%. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends contacting a local real estate professional for additional market pricing information. The average number of days on the market (DOM) for homes selling in May was 144 days, an increase of 14.3% from 126 days in May 2018.
Forecast: May sales were 19 units, or 28.4%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 67 sales for the month, while actual sales were 86 units. ACRE forecast a total of 261 residential sales so far in 2019, while there were 304 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.”
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The Lake Martin Residential Monthly Report is developed in conjunction with the Lake Martin Area Association of Realtors to better serve area consumers.