Sales: According to the Lee County Association of Realtors Multiple Listing Service, Lee County home sales totaled 207 units during June, down 12.7% from 237 sales in the same month a year earlier. June sales were down 15.2% compared to 244 sales in May. Results were equivalent to the five-year June average of 207 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 June totaled 680 units, an increase of 21.2% from June 2018’s 561 units and an increase of 1.9% from May’s 667 units. June months of supply totaled 3.3 months, an increase of 38.8% from June 2018’s 2.4 months of supply. June’s months of supply increased 20.2% from May’s 2.7 months of supply.
Pricing: The Lee County median sales price in June was $255,000, an increase of 3.7% from one year ago and an increase of 8.5% from the prior month. This direction is consistent with historical data (2014-18) indicating that the June median sales price on average increases from May by 8.4%. 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 June spent an average of 62 days on the market (DOM), a decrease of 10.1% from 69 days in June 2018 but a increase of 12.7% from 55 days in May.
Forecast: June sales were 41 units, or 16.5%, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 248 sales for the month, while actual sales were 207 units. ACRE forecast a total of 1.095 residential sales in the Lee County area year-to-date, while there were 1,049 actual sales through June.
ACRE’s statewide perspective: Statewide residential sales decreased slightly in June, ending a five-month streak of year-over-year sales gains. This was the first such decline since December 2018 and only the fourth in the last two years. Statewide residential sales decreased 3.4% from 6,277 closed transactions in June 2018 to 6,063 in June 2019. Year-to-date, however, sales are up 1.8% from 2018, a record year for residential sales. Home price appreciation in the state continued to climb as the median sales price in June increased 7.3% year-over-year from $164,987 to $177,018. The statewide median sales price is up 4.1% year-to-date. While nationwide inventory levels (active listings) are stabilizing (equal to June 2018), Alabama’s residential listings decreased 9.7% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and in the summer 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 June spent an average of 86 days on the market, an improvement of 14 days from June 2018.
NAR’s national perspective: After a small gain in May, existing home sales weakened in June. Nationwide residential sales decreased 7.5% from approximately 570,000 closed transactions one year ago to 527,000 currently. The nationwide median existing-home price increased 4.4% in June, marking 88 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of REALTORS, said, “Home sales are running at a pace similar to 2015 levels – even with exceptionally low mortgage rates, a record number of jobs and a record high net worth in the country.” Yun said there is a housing shortage across the country and more inventory is needed, especially in the entry-level price range. “Imbalance persists for mid- to lower-priced homes with solid demand and insufficient supply, which is consequently pushing up home prices,” he said.
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.