Sales: According to the Lee County Association of Realtors Multiple Listing Service, Lee County home sales totaled 244 units during May, down 10.9% from 274 sales in the same month a year earlier. May sales were up 52.5% compared to 160 sales in April. Results were 13.6% above the five-year May average of 215 sales. Two more resources to review: Quarterly Report and Annual Report.
For all Lee County housing data, click here.
Inventory: Homes listed for sale in the Lee County area during May totaled 667 units, an increase of 23.5% from May 2018’s 540 units and an increase of 2.5% from April’s 651 units. May months of supply totaled 2.7 months, an increase of 38.7% from May 2018’s 2 months of supply. May’s months of supply decreased 32.8% from April’s 4.1 months of supply.
Pricing: The Lee County median sales price in May was $235,000, a decrease of 2.3% from one year ago and a decrease of 4.3% from the prior month. This direction is inconsistent with historical data (2014-18) indicating that the May median sales price on average increases from April by 8.3%. 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 55 days on the market (DOM), an increase of 5.8% from 52 days in May 2018 but a decrease of 31.3% from 80 days in April.
Forecast: May sales were five units, or 2.1%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 239 sales for the month, while actual sales were 244 units. ACRE forecast a total of 847 residential sales in the Lee County area year-to-date, while there were 842 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 Lee County Residential Monthly Report is developed in conjunction with the Lee County Association of Realtors to better serve its area consumers.